La Jolla, Calif.-based Paragon Real Estate Investments is a privately held company that manages and invests funds on behalf of family offices, institutional investors and high-net-worth individuals. Its growing portfolio of stabilized assets is managed through its flagship open-ended fund, Paragon Real Estate Fund.
Manual Accounting Proves Cumbersome
As Paragon’s investor base grew significantly, its accounting team found that performing property accounting manually on spreadsheets was cumbersome, time-consuming and mistake-prone. The company sought a new software solution capable of streamlining transpositions, general ledger updates, distributions and other investment operations.
Single Data Platform Means Better Visibility, Fewer Errors
By housing all investment data for Paragon’s equity accounts, from the investor to the asset levels, Yardi Investment Accounting made it much easier for company officials to see how different cascading rules translate to the general ledger.
“Investment Accounting’s seamless integration with Yardi Voyager means we don’t have to worry about mistakes from manually entering data into spreadsheets or whether disparate systems can communicate with each other and make the various general ledgers match,” said Matt Berlin, Paragon’s CFO. “Having investment accounting and general ledger operations under one roof and being able to reallocate an investment entity to new entities automatically, for example, is a huge element of our growth plans.”
Investment Accounting also streamlined Paragon’s annual net asset value calculations by automatically incorporating the current share price.
Capital Call Efficiency
When Paragon opened a new series of shares to its investors within the fund, Berlin recalled, “We didn’t need to set up new spreadsheet formatting, just add new categories. There was one place to see the information needed to answer investors’ questions as opposed to having to open up multiple files.”