Portfolio Valuation Process
This page describes the Portfolio company management and NAV calculations within AIRR
AIRR offers a convenient way to manage and track your investment vehicle's portfolio. When paired with Xero's accounting solution it is possible to automate a large part of portfolio valuation.
Portfolio companies are added by using the Companies and Valuation page found in the settings
Settings -> Companies and Valuation
1. Adding Portfolio companies
Adding Portfolio Companies
To add a portfolio company complete the form on the page:
You may also select whether or not metrics should be enabled for the company.
To learn more about managing metrics in AIRR visit the following page
AIRR provides the ability to specify more detailed information about the portfolio holdings
Adding share classes
In order to add the shareholding structure of the portfolio company, first you need to add the share classes that exist in the corporate structure. This is done in the Share Classes tab.
D. Comparable Transactions
Comparable public companies can be added in the comparable companies tab. This will generate multiples to benchmark or derive a valuation for the portfolio company.
2. Adding Founders, Shareholders and Share Class Information
3. Managing Valuations
Editing valuation information
Editing holding information
In order to edit the the founders, shareholders and share class information for the portfolio company click the cog icon for the given portfolio company in the list.
Depending on the size of your display you may have to scroll right!
A. Defining Share Classes
B. Entering shareholders
Entering shareholders structure
In the Shareholders tab you can enter all the shareholders in the Portfolio company, including their type, number of shares and share class (defined in the previous step).
The valuation of a company can be managed from the Companies and Valuation settings page by clicking the trend-line icon.
C. Entering Founders information
Entering Founders information
Basic information about the founders of the portfolio company can be added in the founders tab.
A. Equity Valuation
Adding Equity Valuations
In the Equity Valuation tab, past and forecasted valuations for the portfolio company can be added. These are displayed in a graph above the list of valuations.
B. Debt Valuations
Adding Debt Valuations
In the Debt Valuation tab debt claims on the company can be added. Enter the date and recovery rate.
C. Forecasted Dividends
Adding forecasted dividends
Forecasted dividends can be entered in the forecasted dividends tab. Past dividends should be imported via integration with Xero.
E. Comparable Companies
entering comparable transactions
Comparable transactions are entered in the comparable transactions tab. The required fields are:
The Description field only accepts 255 characters.
4. NAV calculation
With the valuations of the portfolio companies entered and dividend distributions recorded, AIRR will generate and calcualte the fund's past current and future expected NAV. This global view also displays important performance data for the investment vehicle