Accelerate your reporting timelines with LemonEdge- A case study
Why 90-Day Reporting Was No Longer Acceptable
In the evolving world of private capital markets, General Partners (GPs) or their outsourced Fund Administrators (FAs) are under increasing pressure to deliver faster, more transparent reporting while managing ever-growing volumes of data.
Legacy systems, while foundational in their time, are struggling to keep pace with the scale or complexity of current operational demands.
Enter LemonEdge - a modern, cloud-native accounting platform purpose-built for today’s private capital markets.
One of the world’s largest asset managers’ recent migration to LemonEdge offers a compelling case study in scalability, performance, as well as future state-readiness.
“What made this transformation possible wasn’t just technology, it was the way our teams worked together. When a client is willing to challenge old assumptions and co-design solutions with us, we can move mountains. Reducing reporting from 90 days to under 30 wasn’t a LemonEdge win or a GP win; it was the product of a genuinely collaborative partnership.”
From legacy to LemonEdge: A strategic shift
The GP is migrating their entire private assets platform - covering nearly 200 funds (1500+ entities) across a range of asset classes - to LemonEdge.
The primary goal? To accelerate reporting timelines from the c.90 days it was taking due to the constraints of the incumbent legacy system, down to under 30 days.
The transition involved:
- Utilizing LemonEdge configurability to match to complex business requirements
- Automated data migration pipelines from the legacy system to LemonEdge
- Leveraging the LemonEdge API to automate data exchange with up/downstream systems
- Exploiting the LemonEdge scalable architecture to support future growth
They also aimed to automate several historically manual and therefore slow and error-prone processes in the legacy system. One example was the subsequent close process, which needed to be run every quarter over a period of 2 years equalizing across all investors as well as across the multiple ‘sleeves’ within the fund (reflecting multiple investor types/classes). With LemonEdge that process was transformed from manual/error prone to fully automated, completing in minutes at the press of a button.
The Scale of the Challenge
The numbers speak volumes:
- 10,000+ investors
- 10 million+ transactions
- 60 million+ general ledge allocations
- 100+ funds already live on LemonEdge
- 50+ new funds on LemonEdge from inception, including a flagship multi billion fund
The GP is actively fundraising with an expectation of 10x growth in the next five years. Legacy systems simply weren’t built to handle this scale.
Reporting Bottleneck: Legacy vs. LemonEdge
In the legacy system the reporting processes were inefficient as well as resource-intensive leading to the unacceptable 90-day reporting cycles. Even in the LemonEdge system given the extreme volumes being processed there were initially some inefficiencies associated with the saving of data. However, those issues were resolved by deploying a new approach to managing the physical limits of the write instructions to disk.
LemonEdge’s scalable architecture
Overall it was the advanced architecture of the LemonEdge solution that addressed the issues, the scalability benefits of which achieve the orders of magnitude improvements.
Those innovations transform the platform’s ability to handle high-volumes of data with game-changing efficiency, reducing pressure as well as risk for the teams responsible- making it truly enterprise-ready.
A Collaborative Approach to Innovation
LemonEdge worked closely with the GP’s team to resolve the challenges that arise with any implementation, co-designing innovative solutions along the way. The result was not just a successful migration, but opportunities to learn from mistakes (we are all human!) to build a strong partnership with a shared vision for scalable growth.
The results:
- Reporting timelines reduced from 90 days to 30 days
- A more engaged team, less stress, less risk, making for higher engagement
- A true partnership established between the GP and LemonEdge
The LemonEdge Advantage
As a next-gen private markets fund accounting/administration system LemonEdge is not constrained by the limitations of the legacy systems on the market. Those solutions were built in simpler times when private equity funds first emerged as force in the financial services industry c.30 years ago.
As private capital markets continue to expand, GPs/FAs need platforms that can scale with them. LemonEdge’s modern architecture, performance enhancements, as well as the API all deployed through a collaborative implementation model make it the ideal choice for firms looking to future-proof their operations.
Legacy systems had their moment. LemonEdge is built for what’s next.
Scalability summarized
LemonEdge processes are architected to be scalable by design.
LemonEdge is able to take full advantage of today’s on-demand scalable cloud infrastructure, which did not exist c.30 years ago.
LemonEdge has a powerful on-board API capability, another feature of next-gen technology, which enables seamless integration with custodians, GPs/FAs, valuation agents, price/FX feeds, etc.
Contact LemonEdge
If you would like to know more or arrange to see a demo of the system then please contact us using sales@lemonedge.com.
Book a demo, to see what LemonEdge can do.
In just 45 minutes, we can show you how the future's brighter over here.
