A Portfolio Governance System is a 📝BrightZen Systems service that collects, transforms, and presents the key results of each company in a portfolio, so an investor or holding company can govern many companies from one consistent set of numbers.
The work starts with a simple deck template and three lists drawn from the companies' balance sheets: the companies in the portfolio, their investors, and, for a holding company, its investments. Each company then gets an 📝Integrated Financial Model (IFM) that includes a cap table.
From the IFMs, the system produces a financially driven one-page summary for each company. The page covers six rolling quarters and the last three years, a schedule of major liabilities and equity holders, a summary cap table, milestones and objectives, and months of runway remaining.
The last component reconciles each company's cap table and balance sheet transactions to the holding company, with that reconciliation automated from the data held in 📝BigQuery. The Portfolio Governance System applies the 📝CFO System across a portfolio rather than a single company.
Our first implementation of a Portfolio Governance System was at 📝Assembled Brands.