Portfolio Monitoring In Private Equity

A process by which private markets investors (such
as fund managers) control the evolution of a portfo-
lio company or asset, notably by comparing it with
preset targets, such as sales, the cash situation, and
(if applicable) debt service and repayment. Methods
of monitoring include presence on the board, reg-
ular reports, and meetings. These methods should
provide investors with a way of identifying any prob-
lems early and taking corrective action rapidly. Close
monitoring by investors provides management with
access to new ideas, contracts, and a certain amount
of help from investors.