Gen II’s Strategic Investments & Innovations to Drive Client Success

Authored by: Steven Millner, Chief Executive Officer, Co-Founder
Updated on: September 26, 2024

Dear Clients and Friends,

Our team has been busy building a bigger and better Gen II while delivering value-added, mission-critical services to our clients. The partnership we share is special to us, it influences every decision we make in operating Gen II.

As you know the Private Equity industry has grown tremendously in the past six years, with assets under management increasing nearly 20% per annum since 2018. During this time, we have helped launch your business or joined your team to support the next stage of your growth. As we’ve worked shoulder-to-shoulder with you, we have also continued to make substantial investments in our business. These investments have been focused on talent, process improvement, technology, and a significant expansion and enhancement of our client-facing tools and capabilities to meet your growing needs.

Here's a snapshot of our investments and why we believe they can be impactful for you.

Building Talent
People are our principal asset, delivering the exceptional service you expect from us. They are subject matter experts and our brand ambassadors. We have been actively growing our Gen II team at all levels. Since January 1, 2023, we have recruited almost 550 employees while experiencing improved annual retention.

We believe alignment of interests is a cornerstone of a partnership relationship. Our team is fully aligned with your success. As of June 30, 2024, 55% of our team have equity in Gen II.

Growing Our Capabilities
Our clients are growing both their funds and the geographies in which they operate. To support this growth, Gen II has been investing in our service offering as well as expanding our geographic presence. Most recently we have invested in a market-leading private credit service offering, enhanced our real estate services, and launched our Tax Compliance Services Group. In April 2024, we completed our acquisition of Crestbridge Fund Services, a leading European PE /RE fund administrator. The Crestbridge acquisition expands our European footprint by growing our office in Luxembourg and adding new offices in London, Ireland, and the Channel Islands. Following this acquisition we now have over 1700 employees operating out of 14 offices and we administer more than $1 trillion in investor capital. These investments are in response to requests from you. Keep them coming!

All Things Security
We take data privacy and security very seriously. We continue to make investments in industry experts, technology solutions, and supporting resources to ensure we deploy a highly secure platform. Our accreditations are meaningful. In July 2024 we became a certified organization under the EU-US Data Privacy Framework, maintained by the International Trade Administration within the United States Department of Commerce.

Introducing Treasury Services
Cash management is a pain point for many of our clients. This came to light in the aftermath of the Silicon Valley Bank/First Republic Bank failures. In response to these events, we investigated institutional-grade treasury systems to better support our clients. We have commenced implementing a leading treasury and liquidity platform that is purpose-built for the alternative asset industry. This system is currently being rolled out to all Gen II clients.

Improving the Gen II Client Experience
In July 2024, we launched our Genesis platform. Genesis is a single pane of glass solution developed by Gen II to improve our client experience. Genesis is a multifunctional system; version 1 is an internal workflow tool that will soon be shared with our clients. We are developing an online approval system for you to release deliverables to investors, and a permissioning tool to allow you to automate the approval for access to systems and files. We will provide updates on our progress as we continue to expand the capabilities and increase the benefits of Genesis. The future state will be a landing page for all Gen II systems and dashboards for accessing your fund and operational data.

Technologies That Elevate Our Clients
In September 2023, we formally established our Digital Solutions Group (DSG), marking a significant milestone in our long-standing commitment to developing and investing in cutting-edge technologies for our clients. This new group will further drive innovation and growth in our technology solutions. These efforts continue to build on the digitalization of PE/RE evolution. Our technology suite is branded under our Sensr® brand. DSG currently offers the following technologies to our clients:

• Sensr® Analytics: Provides users with on-demand access and visualization of fund data in aggregate and enables drill-down analysis for efficient performance reporting.
• Sensr® Databridge: A no-code solution, empowering users to effortlessly integrate fund administration data with both in-house and third-party platforms.
• Sensr® Portal: Provides transparency and enables investors to track their investments, projections, and returns to streamline communications.
• Funded: An electronic investor subscription platform that provides a user-friendly interface that enables the attorney, sponsor, and investor to work collaboratively in a secure, web-based solution.

Gen II is operationally and financially strong. We use our capital to invest in areas that are impactful to our clients. As subject matter experts focused exclusively on the PE/RE space we believe that we have an edge in being in the know and agile to deliver value-added capabilities to better serve you.

Steven Millner
Co-founder & Chief Executive Officer

1 McKinsey’s Global Private Markets Review 2024

Published on: September 26, 2024