[2] Pipeline tracking is one of the key features of an accounting system and software for asset management.
The system can easily execute a cash flow model and create return assumptions.
It uses the updated status of the investment to provide the necessary tools in creating every possible outcome, such as future payments that are distressed, conversions for debt to equity and maturity of loans.
This system thereby aids in the evaluation and structuring, including the (ongoing) portfolio optimization, of any fund.
It also typically allows for customized assumptions on the leverage cost, interest income, taxes and expenses, and creates several scenarios concerning the cash allocation such as reinvestments, distribution of investors and fresh investments.
Customized reports on the performance of the investment can be created using any of the calculations programmed in the database of the system.
Pipeline tracking has multiple benefits and one of them is that it provides a standard layout for possible deals.
It also creates a manifold portfolio with potential returns by utilizing information on the target industries or regions.
The benefits of asset management include the creation of a platform for maintaining the projection of cash flow on investments.
Asset management increases the scale and adds investments without the loss of analytic perspective.