Ditch the Spreadsheets: Why Your Firm Needs FirmView® to Manage Compensation and Carry

Comp and carry was the talk of the town at last month’s Private Funds CFO New York Forum. Participants discussed the need to stop managing compensation and carried interest on spreadsheets, so they are not introducing risk into their operations. In private capital markets, where billions are on the line and compensation structures are complex, relying on outdated tools isn’t just inefficient—it’s a liability.

Firms that dominate this space aren’t running their most critical calculations on clunky spreadsheets riddled with version control issues and manual errors. They’re leveraging the leading software platform designed to handle the intricate, high-stakes world of carry distribution and compensation. If you want to scale, retain top talent, and keep LPs confident in your operations, it’s time to make the upgrade.

For a quick FirmView primer download Comp and Carry comic book here.

The Problem with Spreadsheets in Compensation Management

Let’s be clear: spreadsheets have their place. But when it comes to something as crucial as tracking compensation structures, deferred comp, performance incentives, and multi-tiered carry distributions, spreadsheets simply aren’t built for the job. Here’s why spreadsheets are holding Human Resources and Finance teams back:

Too Many Manual Inputs = Too Many Mistakes

Compensation and carry calculations involve multiple variables: performance thresholds, vesting schedules, multi-entity profit allocations, “jump balls”, and more. When you’re manually inputting formulas and linking cells across 20 different sheets, mistakes are inevitable.

A miscalculation in a single formula can cause major downstream errors, misallocating millions in compensation. One small typo or formula misfire can spark internal disputes, compliance nightmares, or worse—employee scrutiny. A seven-figure payout error should never be “just a spreadsheet mistake”.

No Scalability, No Flexibility

What worked for your firm at $500M in AUM won’t cut it at $1B+. As firms grow, compensation models evolve—adding new funds, team members/partners, carry splits, and incentive structures.

Spreadsheets don’t scale. Every new variable means another layer of complexity, another file version, and another opportunity for errors. A proper software platform adapts to new fund structures, new compensation models, and firm-wide expansions without adding chaos.

Lack of Transparency & Auditability

You want airtight documentation when it comes to comp. Investors demand it. Partners expect it. Regulators require it.

Spreadsheets don’t provide clear audit trails. If a distribution gets challenged, good luck tracking down who changed what formula and when. A software platform logs every transaction, update, and approval, creating an indisputable record of compensation calculations and payouts. That’s a game-changer for compliance and risk mitigation.

Wasted Hours & Resources

The firms that win in private capital aren’t wasting high-value talent on spreadsheet gymnastics. If your CFO or human resources team is spending days recalculating comp instead of strategizing on firm growth, you’re burning money.

Automating compensation tracking through a software platform eliminates hours (or even weeks) of manual calculations, rework, and version control issues. That time saved translates directly into higher productivity and more time spent on value-driving activities.

The Solution: A Purpose-built Carry and Compensation Software Platform

HR teams and finance teams from top-tier private capital firms don’t leave compensation and carry to chance—they deploy purpose-built solutions like FirmView to eliminate risk and optimize efficiency. The right platform offers:

Automated Carry & Compensation Tracking

Eliminate manual errors with automated calculations, performance incentives, and vesting schedules.

Full Auditability & Compliance

A system of record ensures transparency, tracks every change, and provides defensible calculations for internal and external stakeholders.

Scalability as Your Firm Grows

Easily adapt to new funds, evolving compensation structures, and increasing complexity without overhauling your entire system.

Time & Cost Savings

Free up valuable finance and operations resources by reducing time spent on manual compensation calculations.

Conclusion: Level Up or Get Left Behind

Private capital markets are becoming more competitive and complex. The firms that scale effectively, retain top talent, and command LP trust are the ones that leverage technology to streamline critical processes. If you’re still relying on spreadsheets to manage comp and carry, you’re exposing your firm to unnecessary risk. The question isn’t if you should move to a dedicated software solution—the question is how much money and time are you losing by not doing it already?

The winners in this industry embrace innovation, request a demo or contact Allvue to learn more about FirmView.

More About The Author

Richard Change

Head of PFA Solutions

Richard Change joins Allvue as a member of the senior leadership team, following Allvue’s acquisition of PFA Solutions. In 2012 he set out as co-founder to start PFA Solutions. As the former Chief Architect at a leading private equity firm, Richard Change saw a gap in data standards, as well as limitations on how firms stored and tracked investment information. PFA focused on technology solutions for calculating GP Carried Interest allocations, total compensation management and tracking consolidated investor and portfolio performance information across funds. In addition to his role at PFA Solutions, Richard works with various industry committees and serves on the board on various local organizations. Prior to co-founding PFA Solutions, Richard was the Chief Application Architect at The Carlyle Group. He has over 20 years of technology experience and a deep understanding of fund operations, performance management, carry and co-invest within the Private Capital markets.