Alternative Investments Software for Private Markets

Alternative investments software differs fundamentally from traditional portfolio management systems: instead of relying on daily market prices, it manages commitments, capital calls over several years, distributions and valuations that are updated periodically. For private equity, private debt, real estate and infrastructure, the software brings this data together at position level and makes performance measurable using key metrics such as IRR and TVPI. Profidata’s XENTIS provides these capabilities within the same platform used to manage liquid assets, investment compliance and accounting.

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Structured processes

Alternative Investments Software for your sector


Private markets have come of age – and so have the demands placed on their management. Holding periods are lengthening: according to McKinsey’s Global Private Markets Report 2026, they now average 6.6 years. Investors are paying closer attention to capital actually returned. And in Germany, the Fund Risk Limitation Act has reorganised lending by funds with effect from 16 April 2026. Anyone managing alternative investments today therefore needs one thing above all else: a database that auditors, regulators and investors alike can rely on.

Alternative investments require bespoke processes for administration, valuation and reporting. We offer you a specialised module for Private Equity, Private Debt, Real Estate and Crypto Investments, which ensures comprehensive recording, structuring and automation. With asset templates and integrated commitment management, our Alternative Investments software efficiently tracks all capital calls, returns and commitment interest. This allows alternative investments to be managed within the same asset management software as equities, bonds and funds.

Reviewed by Zoran Sucic, Senior Business Analyst at Profidata · Updated 1 October 2026

What alternative investments software needs to deliver


Professional software for alternative investments must be able to handle the specific characteristics of illiquid assets, which are not catered for in traditional portfolio systems. Six key capabilities are essential:

  • Valuation at position level: Values reported by the general partner are recorded directly at the position level and processed consistently using defined pricing rules.
  • Commitment management: Commitments, capital calls, distributions and commitment interest are processed automatically and in a traceable manner.
  • Flexible NAV calculation: Changes in value resulting from drawdowns, redemptions or delayed valuation reports are correctly incorporated into the NAV, including retrospectively.
  • Private markets metrics: IRR, TVPI and RVPI are calculated using the same data as that used for accounting and reporting.
  • Investment compliance: Investment limits, leverage requirements and stress tests apply to illiquid investments just as they do to shares and bonds.
  • Regulatory-compliant accounting: Parallel financial reporting in accordance with IFRS, HGB and Swiss GAAP FER, without the need for data transfer between systems.

Private equity and private debt are not subject to stock market prices. Each general partner reports in its own format and at its own pace, and the data is rarely standardised across all funds involved. XENTIS therefore captures the reported values directly at position level and derives a consistent valuation from them using predefined pricing rules.

If a capital call, a repayment or a subsequently submitted valuation report changes the value of a position, the system recognises the adjustment and corrects it automatically. Retrospective changes to market values are fully integrated. This eliminates the need for manual post-processing, which is the most common source of errors in spreadsheet-based processes.

At the heart of any private markets management system lies the commitment. XENTIS maps commitments, capital calls, distributions and commitment interest via configurable asset templates, ensuring that even different contractual models are processed consistently. Cash flows are automatically reconciled with accounting records and securities holdings.

For fund administrators, this means an end-to-end process: The Fund Administration in XENTIS calculates the NAV in a multi-stage process, manages share classes and maps master-feeder, umbrella and fund-of-funds structures, including capital commitments from investors in private equity and property funds.

With the Fund Risk Limitation Act (FRiG) Germany has implemented the European AIFMD II on a one-to-one basis; it essentially came into force on 16 April 2026. Lending AIFs may, in principle, only be launched as closed-end funds. Leverage is capped at 175 per cent for open-end AIFs and 300 per cent for closed-end AIFs, and open-end funds must select at least two liquidity management instruments. For loans granted before 15 April 2024, a transitional period applies until 16 April 2029. The extended reporting requirements will apply from 16 April 2027.

At the same time, since February 2026, the Location Promotion Act has opened up domestic special AIFs with fixed investment conditions for investments in closed-end private equity and venture capital funds, as well as in ELTIFs. For many AIFMs, alternative investments are thus shifting from a niche area to day-to-day business. Profidata has implemented the mapping of Private Debt in XENTIS has been specifically enhanced with the latest release for Alternative Investments, including variable-rate instruments such as floating-rate loans.

In private markets, it is not only performance that counts, but also how much capital has actually been returned. In McKinsey’s annual survey of 300 institutional investors, 54 per cent described DPI as critical or very critical; it thus ranks joint second with MOIC, behind IRR.

IRR (Internal Rate of Return): The IRR measures the time-weighted return, taking all cash flows into account. It is the key metric for comparing fund managers and fund cohorts.

TVPI (Total Value to Paid-In): The TVPI calculates the total value comprising distributions and residual value as a proportion of the capital paid in. It shows the total value added, both realised and unrealised.

RVPI (Residual Value to Paid-In): The RVPI expresses the unrealised residual value as a proportion of the paid-in capital. It shows how much value is still tied up in the portfolio.

DPI (Distributions to Paid-In): The DPI compares the capital distributed to the capital paid in. It measures the liquidity actually generated.

Operated in a private cloud or on-premises


XENTIS can be run either in Profidata’s ISAE-certified private cloud or on-premises in your own data centre. On request, our Managed Business Services also take care of shadow accounting, investment compliance, price and standing data management, and reconciliation. New features for alternative investments are released on a monthly basis.

Profidata has been developing software since 1985 and is one of the leading providers in the field of investment management software. The owner-managed Swiss company, headquartered in Zurich, employs around 240 staff at offices in Frankfurt, Luxembourg, London and other European cities.

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Tailor-made solutions for your sector

Funds Administration
Fund Administration

Efficient management of alternative investments with flexible NAV calculations and multi-asset-class capabilities

Integrated investor and shareholder management for transparent investment overviews and reporting

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Compliance and Risk Management
Compliance & Risk Management

Regulatory-compliant management of alternative investments with automated pre- and post-trade checks

Customised risk analyses, exposure monitoring and stress tests for private equity and private debt

Our software offers integrated hedging and netting to reduce risks

Portfolio Management and Execution
Portfolio Management & Execution

Comprehensive management of your investments with IBOR, look-through analyses, strategic allocation and detailed performance attribution

Automated rebalancing and investment proposals with pre-trade checks for regulatory compliance, as well as optimised trading strategies

Seamless order and trade execution with order capturing, rule-based matching and integrated settlement for alternative asset classes

Investment Accounting
Investment Accounting

Accounting for alternative investments with multi-GAAP, parallel financial reporting and flexible consolidation

Automated recording and valuation of complex financial instruments with dynamic transaction tracking

High-performance software with integrated tax calculation, position keeping and general ledger for maximum transparency

Your benefits

Integrated platform or specialist solution?

Specialised solution exclusively for private markets

Integrated platform (XENTIS)

Separate data storage
Private markets data is stored in a separate system alongside the portfolio system.
A shared database
All asset classes are based on the same audit-proof database.
Risk via roundabout routes
Look-through and overall risk only arise through interfaces and reconciliations.
Total risk in a single system
IBOR and look-through provide a direct view of the risk across all investments.
Separate investment limits
Illiquid investments are often monitored outside the scope of liquid compliance.
End-to-end compliance
Pre- and post-trade checks apply equally to all investments.
Accounting via export
Data must be transferred to a separate accounting system.
Integrated Financial Reporting
XENTIS records transactions in parallel in accordance with IFRS, HGB and Swiss GAAP FER.
Reporting with lead time
Before each reporting date, data from multiple sources must be consolidated.
Reporting from a single source
AIFMD, Solvency II and EMIR reports are generated from the same data.
Strong in deal-making
Specialised solutions offer in-depth functionality for GPs’ deals and fundraising.
Strong on control
XENTIS offers managers and custodians consistency and audit-proof processes.

Who XENTIS is suitable for


XENTIS is aimed at institutions that manage, custody or supervise alternative investments and must meet high standards of governance and audit compliance:

  • Asset management companies and service asset management companies, which manage special AIFs and ELTIFs with private equity, private debt or property holdings.
  • Fund management companies in Switzerland and Liechtenstein that manage liquid and alternative investments within a single system.
  • Custodians and custodian banks, which need to monitor illiquid assets. Profidata is the leading provider in the custodian services sector in Germany.
  • Insurance companies and pension funds, which map alternative investments for investment controlling and Solvency II reporting.

Pre-configured compliance frameworks cover the jurisdictions of Germany, Luxembourg, Switzerland, Liechtenstein, Austria and Ireland. In total, Profidata’s clients manage over 50,000 funds and mandates with an investment volume of 4.5 trillion euros.

“Quite simply: XENTIS is a single-platform solution. Traditional and alternative investments are managed within a single environment. This reduces the need for manual interfaces, minimises sources of error and saves time,” says Zoran Sucic, Senior Business Analyst at Profidata, in our interview "Alternative Investments in Asset Management".

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In a personalised demo, our experts will show you how XENTIS maps your private equity, private debt and real estate investments, using your own fund structures as an example.

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Alternative Investments Software

FAQs

Alternative investments software is a platform for the management, valuation and analysis of illiquid assets such as private equity, private debt, property and infrastructure. It tracks commitments, capital calls and distributions, values positions based on information provided by general partners, and calculates key metrics such as IRR and TVPI. Unlike traditional portfolio systems, it is designed to handle irregular valuations and long time horizons.

A professional Alternative Investments Software should integrate all key processes relating to alternative asset classes. These include, in particular:

  • Position-specific price tracking for illiquid assets
  • Flexible valuation methods for each fund and investment
  • Automated processing of capital calls and returns
  • Calculation of relevant performance metrics
  • Consistent reporting across funds, portfolios and investors

These features ensure that alternative investments can be managed transparently, scalably and in an audit-proof manner.

XENTIS covers private equity, private debt, property and crypto-assets, in addition to equities, bonds, derivatives and structured products. All asset classes are based on the same audit-proof database. This enables liquid and illiquid investments to be managed, audited and reported on together, without the need to reconcile data between different systems.

Pre-defined pricing rules ensure consistent valuation, even if the reports from individual funds are structured differently. The system automatically detects and corrects changes in value resulting from capital calls, redemptions or delayed valuation reports, including retrospective adjustments.

In Germany, the AIFMD II Fund Risk Limitation Act has been in force since 16 April 2026. Lending AIFs must, in principle, be structured as closed-end funds; leverage is capped at 175 per cent for open-end AIFs and 300 per cent for closed-end AIFs, and open-end funds must have at least two liquidity management instruments. A transitional period until 2029 applies to loans granted before 15 April 2024.

Key performance indicators include the IRR for the time-weighted return, the TVPI for the total value relative to the capital contributed, and the RVPI for the remaining unrealised value. XENTIS calculates these indicators using the same data as that used for accounting and reporting.

Yes. XENTIS is an integrated investment management system in which portfolio management, investment compliance, fund administration, accounting and reporting all operate on a shared data platform. Alternative investments are managed within the system just like any other asset class. Look-through analyses thus reveal the overall risk of a portfolio across all asset classes.

XENTIS supports general ledger and sub-ledger accounting in accordance with IFRS, HGB and Swiss GAAP FER, including parallel processing. The accounting system supports multiple currencies and allows for flexible consolidation. Tax calculations, position management and the general ledger are integrated, ensuring that alternative investments are mapped end-to-end from capital calls through to the annual financial statements.

Yes. XENTIS can run either in Profidata’s ISAE-certified private cloud or on-premises in your own data centre. On request, Profidata can also take over operations and specialist tasks such as master data and price data maintenance, investment compliance and reporting as part of its Managed Business Services.

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Comprehensive expertise to meet your requirements

Investment Strategy & Analysis
IBOR & Look-Through
Risk Monitoring
Data Management

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