ERP Software for Investment Management
Investment management firms operate at the intersection of portfolio performance, regulatory compliance, and investor reporting. Whether managing long-only equity funds, hedge fund strategies, private equity portfolios, or discretionary wealth mandates, the right ERP and portfolio management platform must provide multi-asset-class accounting, real-time NAV calculation, MiFID II and Form PF regulatory reporting, and seamless integration with custodians, prime brokers, and market data providers.
Compare ERP Systems for Investment Management
Select up to 4 ERP vendors to compare side by side. Filtered to show systems with strong investment management capabilities.
Key Challenges for Investment Management
Calculating accurate daily or real-time NAV across complex multi-asset-class portfolios including equities, fixed income, derivatives, and alternative investments
Producing MiFID II transaction reporting, AIFMD investor reporting (Annex IV), and Form PF/CPO-PQR regulatory filings accurately and on time
Reconciling positions and cash balances with multiple custodians and prime brokers on a daily basis to prevent operational errors and pricing discrepancies
Allocating performance fees (carried interest, performance allocations) accurately across fund series, share classes, and investor accounts under complex waterfall structures
Maintaining GIPS (Global Investment Performance Standards) compliance for performance reporting to institutional investors and consultants
Managing complex fund structures including master-feeder funds, fund-of-funds, and separately managed accounts within a single accounting platform
Integrating front-office order management systems (OMS) and portfolio management systems (PMS) with back-office accounting to ensure a single book of record
Best Investment Management ERP for SMBs
Recommended for companies with $10M–$250M revenue and 10–200 employees.
Sage Intacct
mid-rangeCloud-based financial management widely used by small-to-mid fund administrators, RIAs, and wealth managers for fund accounting, partner capital accounts, and investor reporting
Best for: Small fund administrators, RIAs, and family offices
Advent Portfolio Exchange (APX)
mid-rangePortfolio management and reporting platform from SS&C Advent, widely adopted by small-to-mid RIAs and wealth managers for performance reporting and client billing
Best for: Small-to-mid RIAs and wealth managers
Orion Portfolio Solutions
mid-rangeCloud-native portfolio management, performance reporting, and client portal for RIAs and independent wealth managers with strong model portfolio capabilities
Best for: Independent RIAs and wealth management firms
Juniper Square
mid-rangeFund administration platform purpose-built for private equity, real estate, and venture capital funds with investor portal, capital calls, and distribution waterfall automation
Best for: Private equity, real estate, and venture capital fund managers
NetSuite
mid-rangeCloud ERP for back-office financial management at small investment management firms, including management company accounting, expense management, and multi-entity consolidation
Best for: Small asset managers managing company-level back-office operations
Allvue Systems
mid-rangeFund accounting and investor reporting platform for private equity, credit, and real assets managers with strong waterfall calculation and LP reporting capabilities
Best for: Private credit and private equity fund managers
Best Investment Management ERP for Enterprise
Recommended for companies with $250M+ revenue and complex multi-site operations.
SS&C Geneva
enterpriseIndustry-leading multi-asset-class fund accounting platform for hedge funds, prime brokerage, and fund-of-funds with real-time NAV and complex derivatives accounting
Best for: Hedge funds and multi-strategy asset managers
SimCorp Dimension
enterpriseIntegrated investment management platform covering front-to-back operations for large asset managers, including order management, portfolio accounting, compliance, and regulatory reporting
Best for: Large institutional asset managers and pension fund managers
BlackRock Aladdin
enterpriseEnterprise risk analytics and portfolio management platform providing real-time risk attribution, stress testing, and operational workflow for large asset managers
Best for: Large asset managers requiring enterprise risk management
Oracle Financial Services Investment Management
enterpriseComprehensive investment management suite from Oracle covering portfolio accounting, performance measurement, and regulatory reporting for large banks’ asset management arms
Best for: Bank-owned asset management divisions and large fund complexes
Essential ERP Capabilities for Investment Management
Multi-asset-class fund accounting for equities, fixed income, derivatives, real assets, and alternative investments
Daily and real-time NAV calculation with automated pricing feeds from Bloomberg, Refinitiv, and custodians
Custodian and prime broker position and cash reconciliation with automated break identification and resolution
MiFID II transaction reporting and AIFMD Annex IV reporting automation
Performance attribution and GIPS-compliant composites for institutional investor reporting
Carried interest and performance allocation calculation under complex waterfall structures for private funds
Investor capital account management including capital calls, distributions, and quarterly statements
Integration with front-office OMS platforms (Charles River, Bloomberg AIM, Eze) for a single book of record
Form PF, Form ADV, and FINRA regulatory filing support for US-registered advisers
Management company accounting for expense management, revenue sharing, and employee compensation reporting
Investment Management ERP Cost Ranges
SMB
$30,000–$250,000
5–30 users
Implementation: $50,000–$500,000
Mid-Market
$250,000–$1,500,000
30–200 users
Implementation: $500,000–$4,000,000
Enterprise
$1,500,000–$10,000,000+
200+ users
Implementation: $4,000,000–$30,000,000+
Implementation Considerations
Data migration of historical positions, transactions, and performance records from legacy accounting systems is the highest-risk activity and requires dedicated reconciliation resources
Integration with custodians and prime brokers for daily position and cash feeds must be established and tested before go-live; each custodian interface has unique file format and timing requirements
MiFID II and AIFMD regulatory reporting configuration must be validated against actual submission files before the system goes live to avoid regulatory breaches
Performance history migration and GIPS composite reconstruction requires coordination between the implementation team and the compliance officer to ensure historical records meet GIPS standards
Parallel-run periods of 2–3 months are standard for fund accounting system replacements to identify and resolve NAV discrepancies before decommissioning the legacy platform
Frequently Asked Questions
What is the difference between a portfolio management system and a fund accounting ERP?
A portfolio management system (PMS) manages investment positions, orders, and real-time market data for front and middle office teams. A fund accounting ERP manages the authoritative book of record, calculates NAV, produces investor statements, and handles regulatory and tax reporting for back-office and administrator teams. Best-in-class firms often use both, integrated to maintain a single book of record.
Which fund accounting platforms are used by the largest hedge funds?
SS&C Geneva is the most widely used fund accounting platform among Tier 1 hedge funds globally, particularly for complex multi-strategy and prime brokerage operations. Other widely used platforms include Advent Geneva, eFront (for private funds), and internally built systems at the largest quant and multi-strategy funds. Many hedge funds outsource fund administration to firms like SS&C, Citco, or NAV Consulting that run these platforms on their behalf.
How do investment management ERP systems handle MiFID II compliance?
MiFID II requires investment firms to report transactions to their national competent authority via an Approved Reporting Mechanism (ARM) within one business day. ERP and OMS platforms generate transaction reports in ESMA’s required XML format, capturing instrument identifiers (ISIN, LEI), execution timestamps, counterparty details, and price data. Platforms like SimCorp Dimension, Bloomberg AIM, and Charles River include native MiFID II reporting capabilities.
What is carried interest and how is it calculated in fund accounting systems?
Carried interest is the performance-based compensation paid to private fund managers, typically calculated as 20% of profits above a preferred return (hurdle rate). Fund accounting systems like SS&C Geneva, Allvue, and Juniper Square implement waterfall calculation engines that allocate profits among LP investors and the GP carry pool according to the fund’s limited partnership agreement. Waterfall calculations must handle European and American distribution models, clawbacks, and multi-class structures.
How does GIPS compliance affect investment management ERP selection?
GIPS (Global Investment Performance Standards) requires asset managers to calculate, present, and market performance using standardized methodology. ERP and performance reporting systems must maintain composite membership records, calculate time-weighted returns using daily valuation, apply composite dispersion measures, and produce GIPS-compliant presentation materials. Platforms like Advent APX, Orion, and SS&C PORTIA include GIPS composite management functionality.
What ERP system should a private equity firm use?
Private equity firms typically use a combination of a PE-specific fund accounting and investor reporting platform (Juniper Square, Allvue, eFront, Investran) for fund-level operations and a standard cloud ERP (NetSuite or Sage Intacct) for management company accounting. The fund accounting platform handles capital calls, distributions, waterfall calculations, and LP reporting, while the ERP manages firm-level expenses, payroll, and management fee invoicing.
How are custodian reconciliations handled in investment management ERP?
Fund accounting systems receive daily position, transaction, and cash files from custodians via SWIFT MT messaging or SFTP. Automated reconciliation engines compare custodian records against the internal book of record and flag breaks by exception type (price difference, position break, missing transaction). Operations teams review and resolve breaks through a workflow tool, with unresolved breaks escalated for manual investigation before NAV is finalized.
Can a family office use a standard cloud ERP instead of a dedicated investment platform?
Single-family offices with straightforward investment portfolios sometimes use NetSuite, Sage Intacct, or even QuickBooks for financial management. However, as portfolio complexity grows to include alternatives, derivatives, and complex entity structures, a dedicated wealth management platform (Addepar, Orion, Black Diamond) or fund accounting system becomes necessary. Multi-family offices serving institutional clients typically require a purpose-built platform from day one.
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