Ex-LPs launch performance tracking software

Two founding partners of SL Capital Partners have come up with a new product that they claim will make it easier for LPs to record and analyse performance data.

TopQ is a newly-launched cloud-based software provider that allows fund managers and investors to upload spreadsheet-based data about fund perfomance and cashflows into a standardised format and then examine it using an array of analytical tools.

It's the brainchild of SL Capital founding partners Graeme Faulds and Graham Paterson, and Drake Paulson, formerly of fund administrators Vitech Systems Group. 

“It was always unbelievable to us that we were working in a $3 trillion industry still predominantly run on spreadsheets,” Faulds said in a statement. “This has always made track record analysis a painstaking and long-winded process for both fund managers and investors.”

“Even the worst performers can manage to dig up one particular metric which puts their fund in the top quartile, which means as an investor you end up having to cut through a lot of layers of data before you can perform an apples-to-apples comparison. One of the driving forces behind the establishment of TopQ was the need to give investors peace of mind when conducting their due diligence.”

TopQ also claims that it can reduce the risk of inaccuracies creeping into performance tracking. For example, fund managers often consolidate a fund’s cash flow data into monthly – rather than daily – figures, because spreadsheets with years of daily cash flow records quickly become unmanageable. However, this method can result in them eventually misstating their returns by up to 10 percent, according to TopQ.