AcordIQ launches waterfall validation service

AcordIQ (AIQ) has launched a cloud-based waterfall verification shadow service.

The platform aims to help GPs currently dealing with increased investor concerns about investments and regulatory scrutiny in light of Covid-19, by providing them with independent verification on waterfall calculations.

It also aims to reduce Excel dependency and key-person risks by helping with audits and succession planning. The software increases transparency around carried interest from an internal allocation and LP perspective and aims to reduce the oversimplification of Excel approaches to calculating carried interest, which can impact whether or not partners will receive carry.

In a statement, Patrick Brunner, director of product & strategy at AIQ said, “Our new cloud-based Waterfall Administration Service provides a ‘plug & play’, independent and trusted verification of manager’s profit allocation (carry), fees and expense disclosure to their investors for higher accuracy, assurance and compliance.”

AIQ provides technology and related services to private equity. These include fund accounting, distribution waterfall and investment cost management. Headquartered in New York City, the service provider has additional offices in Europe and Asia.