PREQIN Term Intelligence Software User Guide
- June 13, 2024
- PREQIN
Table of Contents
Term Intelligence
Data sourcing
Together Preqin & Colmore create a powerful term benchmark
Where does Preqin source its data?
LPAs are provided by investor services offered by Colmore, a Preqin
company. Information captured from LPAs is anonymized, extracted, and reviewed
by our specialized team of in-house attorneys before being added to the Preqin
Pro platform.
| | Preqin| Colmore| Combined| Vision
---|---|---|---|---|---
Market data| LPA term data| –| ●| ●| Combining Preqin & Colmore
datasets brings new benchmarks and insights to the market
Fund performance data| ●| –| ●
GP and fund data| ●| –| ●
Investor data| ●| –| ●
Investor Services| Ethos data extraction| –| ●| ●| Colmore is a market leading
LP private capital solutions provider
HELIOS platform| –| ●| ●
Fund administration| –| ●| ●
FAIR (Fee validation)| –| ●| ●
Data you can trust
Data protection
Data Collection Agreement
Colmore has an agreement with its clients that client data, collected from
financial reporting and legal documents, can be utilized on an aggregated and
anonymized basis to provide benchmarking services. Preqin and Colmore never
disclose client data.
Data privacy & integrity assurance
Preqin and Colmore ensures that any use or reference to any fund or company
data statistics is in an anonymized and aggregated form and does not make the
individual fund or portfolio company identifiable by third parties. This is
achieved by ensuring that minimum size thresholds for benchmark universes are
maintained.
Information security architecture
Security is an organization-wide concern that involves personnel,
processes, and software. Increasing the number of applications and solutions a
company needs to maintain, and the number of users it needs to service, leads
to increased security concerns.
From an operational standpoint, Colmore has mitigated these risks through
multiple avenues, including (but not limited to) ISO 27001 certification. In
fact, Colmore has achieved the industry’s first ISO 27001 certification
focused on LP data services and fund administration.
Legal terms and fund dates
Source
Legal terms used in the benchmarking are sourced from Limited Partnership
Agreements (“LPA”) and their amendments, together with the relevant management
and subscription agreements.
The LPA, amendments, management and subscription agreements, together, are the
“LPA Documents.” The LPA Documents are provided by Colmore clients for fee
validation purposes through Colmore’s FAIR product, which offers accounting
and monitoring services.
Extraction process
Economic and non-economic terms are extracted from the LPA Documents by an
in-house legal team into Colmore’s proprietary fund fee and legal platform,
Ethos. Following this, the legal data is aggregated and anonymized and then
transferred to Preqin, where it is used for benchmarking (the “Legal Data”).
Data quality assurance
Automated and manual integrity checks are run on the Legal Data in Ethos to
identify any outliers and these are considered and addressed. In addition to
this, the Legal Data is subject to second level review by the more senior
members of the in-house legal team and by FAIR’s team of accountants and
analysts.
Use case
The Legal Data is used for Term Intelligence benchmarking and ILPA
compliance analysis purposes. Clients can select asset class, strategy, fund
size and vintage as benchmarking criteria.
In order to maintain the anonymity of this data, we require a minimum of five
underlying funds to create a benchmark. The specific fund agreements used are
never disclosed to clients.
Breadth of data
Our database has access to 2,500+ private market funds across private
equity, venture capital, real estate, infrastructure, private debt, and
special opportunities.
Terms we benchmark
Term category| Economic terms| Includes ILPA
compliance analysis?
---|---|---
Term length| Length of term|
Extension + extension approval threshold| ●
Closings| Time between initial closing and final closings|
Closing extensions|
Management fees| Early investor MF rate|
Early investor MF basis|
IP length|
IP extensions + approval thresholds|
IP ends on launch of successor fund?|
MF rate stepdown on launch of successor fund?|
MF basis stepdown on launch of successor fund?|
MF rate stepdown in achieving certain % of commitments invested?|
MF basis stepdown in achieving certain % of commitments invested?|
MF rate – inside IP|
MF basis – inside IP|
MF tiering – inside IP|
MF rate – outside IP|
MF basis – outside IP| ●
MF tiering – outside IP|
MF rate – after initial term|
MF basis – after initial term| ●
MF approval threshold – after initial term| ●
Director fee offset| ●
Monitoring fee offset| ●
Advisory fee offset| ●
Broken deal fee offset| ●
Transaction fee offset| ●
Carried interest| Waterfall type| ●
Hurdle type|
Hurdle rate|
Catch up rate| ●
Carry rate|
Premium hurdle|
Premium catch up|
Premium carry rate|
Expenses| Organizational expense cap|
In-house administration expenses|
Third party administration expenses| ●
Legal expenses|
In-house legal expenses| ●
External legal expenses| ●
Legal expenses as a result of external investigation of GP| ●
Investment consultants| ●
Operating consultants|
Travel expenses| ●
IT and software expenses| ●
Side letter expenses|
Bank fees|
Audit and tax preparatory|
Custody fees|
Escrow and
clawback| Escrow reserve %|
Final clawback| ●
Guarantee?|
Interim clawback| ●
Clawback type|
Providing industry-leading fund terms solutions to provide clarity and
confidence in your next LPA negotiation.
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Documents / Resources
|
PREQIN Term Intelligence
Software
[pdf] User Guide
Term Intelligence Software, Intelligence Software, Software
---|---
Read User Manual Online (PDF format)
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