Portfolio Monitoring

Portfolio Monitoring

Workflow

Step 1: Ingest Financial Package

• Accept the user's portfolio company financial package (Excel workbook, PDF, or CSV)
• Extract key financials: Revenue, EBITDA, cash balance, debt outstanding, capex, working capital
• Identify the reporting period and compare to prior period and budget/plan

Step 2: KPI Extraction & Variance Analysis

Key metrics to track (adapt to the company's sector):

Financial KPIs:

• Revenue vs. budget ($ and %)
• EBITDA and EBITDA margin vs. budget
• Cash balance and net debt
• Leverage ratio (Net Debt / LTM EBITDA)
• Interest coverage ratio
• Capex vs. budget
• Free cash flow

Operational KPIs (ask user or infer from data):

• Customer count / revenue per customer
• Employee headcount / revenue per employee
• Backlog / pipeline
• Churn / retention rates

Step 3: Flag & Summarize

• Green: Within 5% of plan
• Yellow: 5-15% below plan — flag for discussion
• Red: >15% below plan or covenant breach risk — immediate attention

Output a concise summary:

1. One-paragraph executive summary ("Company X is tracking [ahead/behind/on] plan...")
2. KPI table with actual vs. budget vs. prior period
3. Red/yellow flags with context
4. Covenant compliance status (if applicable)
5. Questions for management

Step 4: Trend Analysis

If multiple periods are provided:

• Chart key metrics over time (revenue, EBITDA, cash)
• Identify trends — accelerating, decelerating, or stable
• Compare vs. underwriting case

Important Notes

• Always ask for the budget/plan to compare against if not provided
• Don't assume sector-specific KPIs — ask what matters for this company
• If covenant levels aren't known, ask the user for the credit agreement terms
• Output should be board-ready — concise, factual, no fluff