Flip a private equity portfolio company from active to exited in the ValueBridge App. Simplify data entry and improve accuracy by locking down exit proceeds with platform sale records and tracking unrealized proceeds from cash holdbacks, escrows, and earn-outs with FMV records.
Video walk-through
Guide highlights
Start from an active portfolio company
Gross and net returns and value bridges for each deal are driven by transaction records on the portfolio company dashboard. Fund equity inputs drive gross and net invested, realized, fair value, total value, and MOICs. Transaction dates generate gross and net IRRs. The other inputs establish consolidated entry and exit metrics and the basic value bridge. Market metrics complete the detailed value bridge and build the market vs. manager return.
Flip a portfolio company from active to exited
In the portfolio company editor: change the status to exited, enter an exit date, and click save.
Edit the latest transaction record. Change the type and subtype from FMV > Platform FMV to Outflow > Platform sale. Set date to the exit date. Update the six capital structure and income statement metrics to match exit details. For instructions and examples, hit the Show tips switch.
Update exit capital structure
The fund equity and total equity inputs for platform sale records should only include cash equity proceeds that are delivered to shareholders on the exit date. Unrealized proceeds, like escrows, earn-outs, or shares of ownership in an acquiring business, are tracked with separate FMV records. Subsequent realized proceeds have different transaction dates and are tracked with separate outflow records.
Net debt inputs for platform sale records should reflect a basic business balance sheet. Do not burden them with transaction liabilities, like banker or seller fees, expenses, or other items that only arise due to the company being sold.
Update exit income statement
Revenue, gross profit, and EBITDA should be TTM as close as possible to the exit date. Due to financial reporting lags and limited access after exit, these are often estimates (e.g., based on 9-10 months of actual performance and 2-3 months of plan/budget).
Estimates are acceptable, but document sources and assumptions in the transaction notes, especially if building value bridges for marketing (backup for limited partner due diligence or SEC exams).
Add transactions for unrealized exit proceeds
Non-cash proceeds from escrows, earn-outs, or shares of ownership in an acquiring business should be tracked in separate escrow FMV or other FMV records. The fund equity and total equity inputs reflect outstanding unrealized value, and change with quarterly valuations. These records can be updated to outflow transactions when proceeds are eventually delivered to shareholders.
Confirm portfolio company and roll-up results
After saving, the deal’s gross and net returns and value bridges are automatically updated. So are the return and value bridge roll-ups for the fund, manager, and any limited partner investment portfolios that include the portfolio company.
Keeping models clean and accurate
This walk-through illustrates core features that drive accuracy and usability. The ValueBridge App avoids inputs like exit multiple, exit price, and fund ownership at exit because they are often loosely defined and can vary by firm or deal team member. Instead, it builds these metrics from clearly defined fund equity, total equity, net debt, and income statement inputs.
Outflow records like the platform sale stand on their own, without reference to other distributions or unrealized proceeds. They are dated and locked in time so, after recording, never need to be changed. Other distributions and unrealized proceeds have dedicated transaction records, with appropriate dates and values. These drive the IRRs used in return and value bridge calculations, and ultimately allow for the automatic roll-ups across funds, managers, and limited partner investment portfolios.