We spoke with Smartfin’s CFO to understand how Quantium’s software helped them automate critical financial processes, reduce manual work and increase the efficiency of their investor reporting.
THE CHALLENGE
Smartfin is a leading private equity fund headquartered in Europe and the United Kingdom, investing primarily in growth technology companies. With over $650 million in Assets Under Management across 5 funds and 25+ portfolio companies, Smartfin leverages its successful track record, deep expertise, and complementary team experience to add significant value to its portfolio companies.
With ambitious growth plans, the Smartfin team knew that their investment management system, which was quite manual and labour-intensive, would not be able to scale well with their expanding business. Their previous workflows were heavily manual, resulting in doubling up of work and meticulous checks to ensure high-quality output.
To enhance their operational efficiency, Smartfin turned to Quantium to help streamline their fund and portfolio management processes to set them up for success as the business grew. We caught up with Sébastien Thiel, CFO at Smartfin, to learn how Quantium’s software helped Smartfin by:
- Saving time and minimizing the risk of human error by automating Smartfin’s critical financial processes
- Reducing manual work by streamlining portfolio management processes
- Improving investor reporting through easy document sharing and increased responsiveness to LP requests
THE SEARCH FOR A SOLUTION
Prior to Quantium, Smartfin relied primarily on Excel for fund management, portfolio monitoring, and investor reporting, without using specialized private markets software. However, as the number of their investments increased and their growth plans became more ambitious, the team realized that their existing processes were not sustainable in the long run and began searching for a suitable solution.
“Our goals were very clear,” said Sébastien Thiel, CFO at Smartfin. “We needed to resolve our key pain points, with a system that we could scale with at a manageable cost.”
The Smartfin team came across Quantium while exploring options for potential vendors, from stand-alone solutions to fully integrated systems. They found Quantium’s offering to be a good match covering most of their end-to-end software requirements, and thus reached out to schedule an introductory call and demo with their team.
“What stood out to us when we began conversations with Quantium was their open mindset and genuine willingness to help us implement the right solution for our needs. They were not only receptive to our feedback but also actively encouraged it, ensuring that the final product was perfectly aligned with our goals. Additionally, their pricing model aligned well with our business goals, reflecting both the value of their offering and their commitment to our success as we scaled with the technology.”
– Sébastien Thiel, CFO at Smartfin
HOW QUANTIUM HELPED SMARTFIN
1. Saving time and minimizing the risk of human error through automation
Before Quantium, Smartfin faced significant challenges in managing waterfall calculations for their investor distributions. With up to 400 investors to account for, ensuring accurate and reliable calculations was critical. However, the intricacies involved in the tiered distribution process, particularly the need to allocate distributable amounts to subsequent tiers only if sufficient capital remained after prior distributions (whole fund, top-down approach) made this a daunting task. Previously, the process was managed manually using Excel, which was not only time-consuming but also posed a significant risk of human error.
After adopting Quantium, this process is now fully automated. Quantium’s software allowed for the creation of a custom top-down waterfall calculation model that was specifically designed to meet Smartfin’s requirements. This tailored solution automated the distribution process, ensuring that funds were correctly allocated across tiers based on the total investor pool. The automation not only reduced the time required for these calculations but also mitigated the risk of errors, allowing Smartfin to focus on higher-value activities..
2. Reducing manual work by streamlining portfolio management processes
Prior to implementing Quantium, Smartfin relied on manually tracking asset and investment information through extensive Excel spreadsheets. This process was not only complex and time-consuming but also prone to errors, making it difficult to maintain accuracy and efficiency. The manual nature of this workflow posed significant challenges, particularly when managing large volumes of data across multiple portfolio companies. The time and effort required to keep everything organized and up-to-date created a bottleneck, hindering Smartfin’s ability to operate at its full potential.
With Quantium, Smartfin has transformed its data management process. The software facilitates easy one-pager report generation, streamlining the entire workflow. The platform allows Smartfin to store and organize data efficiently – with the correct mapping of fields, data flows effortlessly into the appropriate reports, such as company one-pagers, eliminating the risk of manual errors. As a result, Smartfin can now manage its asset and investment information with significantly less effort.
3. Improving investor reporting through easy document sharing and increased responsiveness to LP requests
Smartfin’s quarterly reporting was a tedious process prior to Quantium. With five complex funds and 25+ portfolio companies, the sheer volume of reports to produce for their investors (including financial reporting, investor capital accounts, portfolio summaries, and one-pager reports) the manual work that went into the creation of each report became an overwhelming task. In addition, all the data points involved had to be updated and managed in different locations.
The entire process was time-consuming and stressful, with tight deadlines and high expectations from limited partners adding to the pressure – since there were limited dashboards available to investors, they were often reliant on the Smartfin team whenever they needed updated information. The manual approach also increased the risk of errors, further complicating an already challenging workflow.
After implementing Quantium, Smartfin experienced a transformative shift in their reporting process. They now use fully customizable templates, integrated with their fund and portfolio data, that automatically update in real time as the underlying data changes. The fully integrated, end-to-end nature of Quantium’s software allows files such as capital call/capital distribution notices to be published directly from the fund management module to the investor portal.
This automation allows Smartfin to generate accurate, comprehensive reports far more quickly. This reduced the pressure on the team, but also ensured that Smartfin could meet LP expectations with ease, enhancing their overall operational effectiveness.
“From an LP perspective, Quantium’s investor portal is a great step up. The feedback from our investors has been positive—they truly appreciate the enhanced transparency and comprehensive data access. The ability to view quarterly updates, fund summaries, and key documents in one centralized platform has elevated their experience and fostered greater trust.”
– Sébastien Thiel, CFO at Smartfin
Another advantage for Smartfin in adopting Quantium’s software is the comprehensive audit trail it provides. With complete visibility into user activity—such as sign-ins, document downloads, inactive accounts, and updates to shareholder information—Smartfin can ensure data integrity while gaining valuable insights into platform engagement. This detailed tracking capability not only enhances security but also enables the team to analyze usage patterns and proactively address any data-related concerns. For CFO Sébastien Thiel, these data points are invaluable for maintaining Smartfin’s high standards of transparency and operational precision.
CONCLUSION
Quantium has not only helped Smartfin achieve everything they initially set out to accomplish, but also exceeded their expectations in several key areas, providing their operational teams with the tools to adapt and grow as their needs change. The company’s flexible, collaborative approach ensured that the software was an excellent fit for Smartfin’s objectives; from minimising time spent on onerous manual data management, to leveling up their investor servicing with faster response times.
“Quantium’s service has been exceptional. While we initially encountered a few concerns, each one was promptly addressed. The personal follow-up by dedicated professionals with a strong technical grasp of the software, as well as a deep understanding of our business processes, made all the difference. We truly speak the same language.”
– Sébastien Thiel, CFO at Smartfin