Investment structures are growing increasingly complex, involving multiple funds, bank accounts, and investors, or requiring cross-border transactions and stringent compliance standards. Legacy processes can compound these challenges, causing inefficiencies, errors, and compliance gaps.
Covercy helps commercial real estate GPs unlock faster fundraising and happier investors.
Learn howIneffectual spreadsheets, endless email chains, disconnected banking, manual accounting, and inconsistent investor reporting systems are quickly becoming a thing of the past. Fund account automation is the ideal solution to support scalability. Let's explore why — and how Covercy can support this transition.
The Operational Challenges Facing Investors and CRE Professionals Today
Manual fund and bank account management can be prone to errors, as professionals must open and manage multiple accounts across different institutions. This can lead to a lack of standardization across different deals. Additionally, with banking data in one place, accounting in another, and reports in spreadsheets, you can expect fragmented financial data, as well as delayed access to critical financial information.
Manual processes also lead to investor reporting issues. It can be challenging tracking capital calls and distributions manually, and inconsistent reporting formats can be confusing. Slow response times to investor questions can lead to decreased transparency and increased frustration.
Because of the higher likelihood of errors or omissions, manual processes can mean compliance risks and difficulty preparing for audits. These operational headaches can cause irreversible issues for transactions, which is why more and more CRE professionals are turning to fund account automation solutions.
Why Fund Account Automation Is a Game-Changer
Fund account automation involves digitizing and automating the setup, management, and monitoring of accounts. Some key components include centralized cash management across funds, transaction tracking, automated account setup, and integrated reporting.
Automation is beneficial for a variety of different users:
- GPs: Automation means less administrative overhead, and more time spent on acquisitions and asset management. GPs and CRE sponsors can also expect faster fund launches. For CRE operators managing multiple properties and ownership structures, automation can reduce an immense amount of manual work.
- Investors: General investors gain greater visibility into investment and performance with fund account automation. With clear transaction transparency, expect enhanced confidence in fund operations.
- Finance and Operations Teams: Administrators can expect reduced manual work and simplified processes, leading to fewer errors, stronger compliance, and more standardization across transactions.
Fund account automation offers more consistent processes across funds and deals. With accounts in one platform and centralized financial control, expect clearer visibility into balances, inflows, and outflows. Investors can receive more accurate and timely reporting, with transparent transaction histories, leading to stronger investor confidence.
Automation also supports operational efficiency at scale with reduced manual data entry and fewer bottlenecks. Real-time insights allow for better decision-making and proactive liquidity management. Automation is designed for growth, and there is no greater platform that supports scalability than Covercy.
Covercy Automates Fund Accounts From Start to Finish
Covercy is not your standard investment management platform. We offer automated fund and account setup, streamlining onboarding for new properties, simplifying workflows, and enabling faster time from deal close to operational readiness.
We also provide a centralized location for cash management. GPs can view all fund and operating accounts in a single dashboard, making it easier to track capital contributions, distributions, and expenses.
When you automate with Covercy, we facilitate integrated reporting and audit readiness. Our services include real-time reporting for internal teams and investors, as well as export-ready data for accountants, allowing for clear audit trails.
With Covercy, you can build a more scalable, investor-ready operation. We tackle the core challenges facing CRE professionals and act as a long-term operational partner. Fund account automation is not just a tech upgrade. It's a strategic advantage that can improve the success of your transactions.
Are you ready to see how Covercy can help you streamline fund operations?