Portfolio Monitoring

---
name: portfolio-monitoring
description: "Use this skill when reviewing portfolio company financials, preparing board materials, or monitoring covenant compliance"
executor: LLM_BEHAVIOR
skill_id: finance.private_equity.portfolio_monitoring_3
status: ADOPTED
security: {level: high, pii: true, approval_required: true}
anchors:
  - finance
  - compliance
  - visualization
  - monitoring
  - performance
tier: 2
input_schema:
  - name: code_or_task
    type: string
    description: "Code snippet, script, or task description to process"
    required: true
output_schema:
  - name: report
    type: string
    description: "Analysis report or summary from portfolio monitoring"
---
# Portfolio Monitoring

description: Track and analyze portfolio company performance against plan. Ingests monthly/quarterly financial packages (Excel, PDF), extracts KPIs, flags variances to budget, and produces summary dashboards. Use when reviewing portfolio company financials, preparing board materials, or monitoring covenant compliance. Triggers on "review portfolio company", "monthly financials", "how is [company] performing", "covenant check", or "portfolio update".

## Workflow

### Step 1: Ingest Financial Package

- Accept the user's portfolio company financial package (Excel workbook, PDF, or CSV)
- Extract key financials: Revenue, EBITDA, cash balance, debt outstanding, capex, working capital
- Identify the reporting period and compare to prior period and budget/plan

### Step 2: KPI Extraction & Variance Analysis

Key metrics to track (adapt to the company's sector):

**Financial KPIs:**
- Revenue vs. budget ($ and %)
- EBITDA and EBITDA margin vs. budget
- Cash balance and net debt
- Leverage ratio (Net Debt / LTM EBITDA)
- Interest coverage ratio
- Capex vs. budget
- Free cash flow

**Operational KPIs** (ask user or infer from data):
- Customer count / revenue per customer
- Employee headcount / revenue per employee
- Backlog / pipeline
- Churn / retention rates

### Step 3: Flag & Summarize

- **Green**: Within 5% of plan
- **Yellow**: 5-15% below plan — flag for discussion
- **Red**: >15% below plan or covenant breach risk — immediate attention

Output a concise summary:
1. One-paragraph executive summary ("Company X is tracking [ahead/behind/on] plan...")
2. KPI table with actual vs. budget vs. prior period
3. Red/yellow flags with context
4. Covenant compliance status (if applicable)
5. Questions for management

### Step 4: Trend Analysis

If multiple periods are provided:
- Chart key metrics over time (revenue, EBITDA, cash)
- Identify trends — accelerating, decelerating, or stable
- Compare vs. underwriting case

## Important Notes

- Always ask for the budget/plan to compare against if not provided
- Don't assume sector-specific KPIs — ask what matters for this company
- If covenant levels aren't known, ask the user for the credit agreement terms
- Output should be board-ready — concise, factual, no fluff

---

## Why This Skill Exists

Track and analyze portfolio company performance against plan. Ingests monthly/quarterly financial packages (Excel, PDF), extracts KPIs, flags variances to budget, and produces summary dashboards.

<!-- SR_40: auto-generated from frontmatter `purpose`/`description` (OPP-Phase3). Expand with domain-specific rationale. -->

## When to Use

Use this skill when reviewing portfolio company financials, preparing board materials, or monitoring covenant compliance

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## What If Fails

If this skill fails to produce the expected output: (1) verify input completeness, (2) retry with more specific context, (3) fall back to the parent workflow without this skill.

<!-- SR_40: auto-generated from frontmatter `what_if_fails` (OPP-Phase3). -->