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Digitization is critical to deliver the transparent and personalized approach private equity LPs demand

The private equity industry has reached the point where digital platforms are needed to compete. Investors’ demands have evolved to require processes that are both agile and intuitive, particularly those that cater to customized reporting and portfolio transparency.

A tighter fundraising environment means GPs must satisfy investor demands as fully as possible. While this is true for established managers, who are raising ever larger funds and absorbing a larger share of capital, it’s a critical success factor for newer managers. In our 2022 emerging managers’ survey, only one in 10 respondents secured a commitment four months after an introduction – far below the 31% who did in 2021.

Best practice reporting is essential for GPs that want to stand out to investors. LPs are no longer relying exclusively on personal assurances from their GPs. They’re asking more pointed questions and expect data to back up the claims, with their demands carrying over to operational transparency and the use of modern technology infrastructure.

No going back on investor reporting

LPs know what best practice looks like. The pandemic established a new precedent for GP-LP communications. As COVID-19 hit and the viability of portfolio companies came into question, many managers adopted a new communications style, providing weekly or even on-demand performance updates to reassure LPs. Should the market have returned to its benign, pre-COVID-19 state, GPs may have been able to return to quarterly reporting, but the continued uncertainty means investors want the higher cadence and quality of reporting to be maintained.

Digital platforms provide distinct advantages for LPs and GPs, offering easy and immediate access to consolidated data in one place. For GPs, they lift the burden of worrying about backend infrastructure. For LPs, digital technology is elevating the investor experience to one that is convenient, flexible, and personalized – like what they get in other industries. Whether it’s the ability to quickly download cash flows or to have one view of all their investments, anything that makes it easier for an LP to consume and process their data makes a GP much more attractive for future investments. Funds that cling to legacy processes will be left behind, while digitization is a way to satisfy investors and gain strategic advantage in a highly competitive environment.

Think you can DIY? Think again

While private equity doesn’t have a standard measure for client experience, firms are increasingly gauged by the insights they can provide. Building a digital solution in house is expensive, resource-intensive, and requires specialized expertise. Worrying about infrastructure, staffing, and training distract from the priority of investing LP capital. Sophisticated fund managers know this and are partnering with administrators who have practical industry knowledge with a singular focus on private equity. Purpose-built technology and quality digital infrastructure can manage the pressure of rising stakeholder expectations, ever-increasing operational complexities, and myriad regulatory requirements.

Private equity has progressed to where digital platforms are not only optimal for the LP experience, but a strategic imperative as investors continue to prioritize GPs that can meet these rising digital expectations. As we move away from the fundraising boom and into more challenging economic times, LPs will consider data availability and historical performance essential while determining their next allocations.

About

Nikolaos Perros is Chief Operating Officer at Gen II Fund Services. Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors, enabling clients to realize greater levels of control, quality, consistency, efficiency, and transparency throughout their business.

This article originally appeared in Preqin Global Report 2023: Private Equity. The opinions and facts included in the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin and Nova providing the information in this content accept no liability for any decisions taken in relation to the above.

In today’s digital-first world, people are used to getting what they need at the click of a mouse or the swipe of a finger. LPs are beginning to expect the same level of convenience and immediacy from their GPs in private equity. However, private equity is still in the early stages of digital transformation.

This digital divide has consequences for both parties. GPs are missing out on efficiencies that could save time and money, as well as the chance to provide greater transparency and up investor satisfaction. LPs are missing out on critical portfolio insight.

The Benefits of Digital Transformation

It’s clear that all stakeholders can benefit from new digital fund administration processes. Let’s start with GPs. A fund administration partner lifts the burden of manual, in-house process, automating tasks such as accounting, data entry and reporting.

More sophisticated digital tools also enhance decision-making by providing structured data, ready for analysis. LPs also need data in a usable format to help make their investment decisions. They are demanding seamless access in near real time.

Unlocking Data with Digital Transformation in Private Equity

To truly unlock and deliver on the value of private equity data, GPs can close the gap through a digital platform. The key thing to keep in mind is that digital transformation is not a one-time event — it’s an ongoing process that should be incorporated into the DNA of all operations.

Now is the time for private equity to catch up to other, more digitized industries in order to keep up with what LPs really want. Read more about embracing digital transformation in our ebook: Defining Digitization in Private Equity: How unlocking data will change the way the industry works

NEW YORK, January 9, 2023 – Gen II Fund Services, LLC (“Gen II”), a leading independent private capital fund administrator, is pleased to announce the promotion of eight client service professionals to Principal. Gen II’s dedicated client service teams are led by a Principal to provide clients with world-class experience and expert guidance. Additionally, in Gen II’s Luxembourg office, Christophe Ponticello has been promoted to Country Head, and Duncan J. Christie has been promoted to Chief Operating Officer.

“We are proud to announce the promotions of these high-achieving and committed professionals,” said Steven Millner, CEO of Gen II. “Our ongoing commitment to invest in our people empowers us to provide our best-in-class service, and we’re excited to continue to grow our team with such talented individuals.”

Gen II 2023 Principal Class:
Julian Blumberg
Taylor Graham
Joel Hiatt
Doug Horton
Radi Ilamov
Julie Ren
Bo Yang
Corey Zahner

“We’re pleased to acknowledge the achievements of these experienced team members who have consistently provided our clients with the expertise, execution, and guidance for which Gen II is known,” said Steven Alecia, President of Gen II. “We look forward to their continued contributions and success.”

About Gen II
Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors. Since its inception in 2009, the company has become one of the largest independent private capital fund administrators, with more than $900 billion of private fund capital under administration. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling GPs to manage their operational infrastructure, financial reporting, and investor communications most effectively. For more information, please visit www.gen2fund.com.

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Contact:
Phil Nunes
BackBay Communications
phil.nunes@backbaycommunications.com

Women We Admire recognizes firm’s Chief People and Impact Officer for professional achievements and philanthropic and community efforts

NEW YORK, December 15, 2022 — Gen II Fund Services, LLC (“Gen II”), a leading independent private capital fund administrator, is pleased to announce Anne-Claire Berg, Chief People and Impact Officer, has  been named to the Top 50 Women Leaders of New York for 2022 by Women We Admire.

“Anne-Claire is a true leader in developing and enhancing company culture.  Her achievements and positive impact, both at the firm and externally, are remarkable, and we’re very grateful to have her on our team,” said Steven Millner, CEO of Gen II.

In profiling Ms. Berg, Women We Admire wrote:

Anne-Claire Berg brings to Gen II, the market leader in Private Equity administration, over 20 years of HR and business experience from a wide range of industries, including the financial, media, luxury, and food sectors. She is passionate about driving change and impact with and through people. Anne-Claire’s expertise is aligning strategy, organization, culture, and skills to foster high performance and sustainable growth. She is well known for attracting and developing talents and teams, fostering an inclusive culture of ownership and empowerment, and leading large-scale, complex transformations.

Prior to joining Gen II, Anne-Claire held senior positions at Danone as the global head of culture and engagement, the secretary-general, and the head of intellectual property – in the US and in Europe. Earlier in her career, Anne-Claire co-founded LUXE.TV, the world-wide, leading television network dedicated to luxury and to the art of living.

Anne-Claire started her career at King & Spalding LLP in New York. She is a member of the NY Bar and holds a Master of Laws from New York University and an Executive MBA from the HEC School of Management. A recognized thought leader on sustainability and inclusive growth, Anne-Claire is a regular speaker for high-visibility events such as the United Nations Women Empowerment Principles Forum (WEPs). She is also a guest lecturer for Harvard University regarding sustainability and leadership. Passionate about joining forces with like-minded peers, Anne-Claire serves various industry, educational, and community organizations, including as a board member of the HEC Alumni Committee.

For more information and to view the full list of awardees, please click here.

About Women We Admire

Women We Admire provides news and information on today’s women leaders in business, entertainment, sports, motherhood, medicine, law, and many other fields. They cover a broad range of topics and areas of interest aimed at recognizing the achievements of exceptional women while inspiring others to aim high and continue their journey towards reaching their full potential. For more information about Women We Admire, please visit https://thewomenweadmire.com/

About Gen II

Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors. Since its inception in 2009, the company has become one of the largest independent private capital fund administrators, with more than $900 billion of private fund capital under administration. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling GPs to manage their operational infrastructure, financial reporting, and investor communications most effectively. For more information, please visit www.gen2fund.com.

 

Contact:
Philip Nunes
BackBay Communications
Phil.nunes@backbaycommunications.com

Your Legacy Systems Are Holding You Back

In today’s competitive market, investor demands are becoming increasingly difficult to meet. LP requests are more complex and more frequent than ever before — and investors expect them to be completed more quickly, too. So how do GPs keep up?

As with any competitive environment, you must adapt and evolve to survive.

Private equity is no different. Those that cling to legacy systems and processes will be left behind as digital transformation — or digitization — is necessary to survive an increasingly competitive environment.

You’re Only as Strong as Your Weakest Link

Currently, raw data housed in spreadsheets is unstructured, disorganized and impossible to fully analyze. Such legacy systems and manual processes could be the downfall of your firm.

On the other hand, digital platforms provide the competitive edge you need to thrive.

They are flexible and scalable and, most importantly, adaptive. These tools enable you to source high volumes of information and are responsive enough to meet new investor demands, including faster turnaround times and greater transparency into the underlying fund investments.

Take Sensr®, a fully managed fund performance and attribution analysis tool. It’s a next-generation, web-based reporting solution that offers dynamically generated performance metrics. Sensr® provides access to aggregation and drill down capabilities at the fund, investment, and investor level.

How To Get Ahead of The Competition

Investors are asking deeper questions and no longer rely on guesswork and assurances from their GPs. They’ve come to expect detailed — data-driven — transparent reports, fast.

In answer, GPs need to evolve beyond legacy systems. At the same time, building a digital platform in-house is expensive, resource intensive and requires specialized expertise.

So how can GPs keep up? Partner with a fund administrator, one that has the resources to stay ahead through the latest digital technology along with the expertise to navigate an everchanging industry. Then, you can focus on what matters most: your investments.

To discover if your systems and processes are holding you back, read Defining Digitization in Private Equity: How unlocking data will change the way the industry works.

The private equity industry is abundant with operational data, but its full worth has yet to be unlocked due to the continued use of outdated systems and processes. Yet, it’s operational data that’s key to satisfying LPs and staying ahead of the competition.

Today, competitive leaders are those that can source high volumes of information, fast and provide accurate insights on every aspect of their operations. Those that cling to legacy systems and processes will be left behind as digital evolution – or digitization – is necessary to survive an increasingly competitive environment.

Redefining The Status Quo

The status quo of raw data trapped in spreadsheets and the manual processes used to interpret that data won’t do anymore. LPs are no longer relying on interpretations and assurances from their GPs. They are asking more pointed questions and expect accurate, transparent answers.

Data is the answer – and digitization is the way in which raw data becomes meaningful insights.

Without a digital platform, data often remains unstructured and disorganized. Digitization makes data usable, digestible, and accessible. Digital systems and processes are agile and intuitive. They’re able to meet new investor demands, including faster turnaround times and more transparency into the underlying fund investments.

Funds are facing more pressure to create efficiencies, manage complexity and deliver information on demand. As managers seek to standout in a highly competitive environment, digitization is the way to satisfy investors and gain a competitive advantage.

It’s No Time To Do It Yourself

The future of private equity is digital, but building a digital platform in-house is expensive, resource intensive, and requires specialized expertise. Further, managing a digital platform – worrying about infrastructure, staffing, and training – distracts from what matters most: your investments.

Sophisticated fund managers know this. That’s why they’re choosing to partner with fund administrators who have the resources to keep up with the latest technology and expertise to navigate an everchanging industry.

To understand what the future of private equity will look like and if you’re equipped with the systems and processes to survive the competition, read Defining Digitization in Private Equity: How unlocking data will change the way the industry works

Elevating investor engagement with transparent, accessible performance reporting

In the early days of an emerging buyout firm, its internal finance team could easily fulfill the requests for investor reports.

When success placed the firm among the world’s leading private equity houses, the scale of the operation began to slip; manual, in-house reporting became a liability instead of the hallmark for personalized, bespoke service.

Scale was just one issue. Overwhelming requests for benchmark and performance reporting –  at the fund and the investor level, aggregated and disaggregated, with look throughs to portfolios – became challenging given the firm’s dependence on spreadsheets. Therefore, a constant influx of “re dos” and investor complaints became routine as the finance team did not have the resources to effectively develop transparent reporting. Unfortunately, the onboarding and integration of a popular reporting tool soon proved difficult and only exacerbated the issue.

When the finance team meet with Gen II, three missteps were quickly realized:

  • Selecting a technology that was difficult to integrate and not intuitive to use
  • Adopting a reporting tool without conducting a throughout data inventory
  • Failing to identify how data would be consumed by fund sponsors

Structuring data to be accessible, transparent, and consistent – so as to be dependable and reportable – was required for minimizing backlogs and utilizing transparent, standardized formats.

Another change was also needed. Due to the complexity of their manual process, only the finance team could fulfill investor report requests. To address these issues, Gen II suggested conducting a large-scale data cleanup and implementing Gen II’s Sensr®, a fully integrated performance reporting tool.

Working closely with the firm, Gen II helped to evaluate their data and lead the data cleanup then identify their investor needs and develop custom report dashboards within Sensr®; this enabled other teams to generate reports as well, increasing the finance team’s capacity. Now equipped with a structured data set and an intuitive performance reporting tool, the firm can confidently provide investors performance reports quickly and accurately.

Emerging Managers Report 2022

Funding stalls in the short term but capital raising poised for a rebound for emerging managers

Just when it looked like emerging managers would get past the effects of 2020, this year brought new market dynamics amid new uncertainties. Our 2022 Buyouts Emerging Manager Survey shows that private capital fundraising has clearly changed across the board.

It was especially challenging for emerging managers, who had a hard time even getting in front of investors. In 2021, thirty-one percent of respondents told us that it took four months or less to get from first introduction to signed commitment. Whereas in 2022, only one in 10 respondents secured commitments in this time frame – more than one half of respondents stating it typically takes five to nine months.

Established firms, on the other hand, are raising increasingly larger funds. These re-ups are absorbing the majority investor interest. LPs report that the percentage of their private equity/venture capital portfolio allocated to emerging managers has been cut by nearly one-third.

New pressures come to light

At the same time, it’s become apparent that today’s more risk-averse environment is putting more pressure on emerging managers to partner with the right service providers. LPs are making a number of unparalleled demands and greater reporting is one of them. In particular, they want real-time access to accurate, timely information.

This administrative burden is a distraction for emerging managers already saddled with market constraints. A partner allows them to focus on the mission-critical tasks of raising, investing, and growing capital without taking on the back- and middle-office responsibilities. Automation, accuracy and transparency have never been more critical.

Implementing technology in private markets should be table stakes now, to handle not only the increasing volume of data but also the growing complexity of the fund structures. Greater competition is also a forcing factor driving next-generation technology to fill a critical role in the fund administration process for emerging managers.

Not only are LPs in the driver’s seat when it comes to capital raising and negotiating terms, but they are also driving trends in fund operations. See what both emerging managers and LPs are prioritizing and how they view today’s private equity landscaping by reading the full report.

Appointments of Nikolaos Perros as COO and Ishita Shah as CCO
Bolster Gen II’s Leadership Team and Prime Firm for Continued Growth

NEW YORK, October 3, 2022 — Gen II Fund Services, LLC (Gen II”), a leading independent private capital fund administrator, today announced the appointment of Nikolaos Perros as Chief Operating Officer and Ishita Shah as Chief Commercial Officer.

Mr. Perros is an experienced business executive with significant expertise in developing and implementing corporate strategy across various business verticals within the alternative asset and financial services industry. Most recently, Mr. Perros served as Head of Private Equity at Citco Fund Services, where he was responsible for establishing and leading Citco’s private capital global service offering. Mr. Perros was also part of the Management Team of Citco Fund Services. Mr. Perros holds a B.S. in Accounting from Fordham University and an MBA from Columbia Business School. As COO, Mr. Perros will oversee all aspects of global client service and M&A integration.

Ms. Shah is a senior finance executive with 20 plus years of experience in alternative assets and fund administration. Prior to joining Gen II, she served as Head of Private Equity, North America at Citco Fund Services, where she led the development of Citco’s private capital platform to become the fastest growing business segment in Citco globally. Ms. Shah was also responsible for the oversight of the private capital platform in Citco’s Asia region. Ms. Shah holds a B.S. in Finance from Hofstra University. As CCO, Ms. Shah will lead the firms commercial strategy through new business development and through the management of long-term relationships with key clients.

“We’re very pleased to welcome these accomplished industry veterans to our world-class team,” said Steven Alecia, President of Gen II. “Together Nikolaos and Ishita bring more than 50 years of experience and expertise in alternative assets, which will help fuel Gen II’s continued growth and innovation.

Were committed to investing in our people, and as we continue our robust growth, the addition of these talented professionals will position Gen II to even more effectively innovate and scale globally,” said Steven Millner, CEO of Gen II. In addition to their notable experience, Nikolaos and Ishita are a perfect fit with Gen IIs focus on operational excellence and were confident their contributions will benefit the firm and our clients.”

I am excited to join an industry leader like Gen II and look forward to working with my talented colleagues to continue to scale and further enhance Gen IIs best-in-class service,” said Mr. Perros.

It is a thrill to join such an innovative firm and Im eager to help expand and optimize the offerings Gen II provides to trusted clients around the world,” said Ms. Shah.

About Gen II

Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors. Since its inception in 2009, the company has become one of the largest independent private capital fund administrators, with more than $900 billion of private fund capital under administration. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling GPs to manage their operational infrastructure, financial reporting, and investor communications most effectively. For more information, please visit www.gen2fund.com.

 

Contact:
Daniel Abramson
BackBay Communications
857-305-8441
daniel.abramson@backbaycommunications.com

Fully Integrated Software Platform Improves Investor Experience, Offers PE Fund Managers
Real-Time Fundraising Visibility, Robust Analytics

NEW YORK, August 17, 2022 — Gen II Fund Services, LLC (“Gen II”), a leading independent private capital fund administrator, today announced the launch of E-Subdocs, a new digital offering that automates the private fund subscription process, significantly improving the investor experience and providing PE Fund managers with real-time information on their fundraising.

Replacing the traditionally time-intensive and error-prone paper-based subscription process, E-Subdocs, which is powered by Anduin, streamlines fund subscriptions from start to finish. At the heart of the E-Subdocs solution is a digital smart subscription form, fully integrated with e-signature, document management, and tracking software. E-Subdocs simplifies the subscription process for investors, saving time and reducing the risk of errors. For PE Fund managers, E-Subdocs provides immediate visibility into investor activity and fundraising analytics. For investors and PE Fund managers alike, E-Subdocs offers critical technology infrastructure, higher levels of trust, and greater transparency, helping to foster a more efficient investor onboarding experience.

“We are pleased to offer E-Subdocs to Gen II clients, further evidencing our commitment to investing in technology solutions that improve the Gen II platform,” said Steven Millner, Gen II’s Chief Executive Officer and Co-Founder. “Given the significant levels of capital invested in the alternative investment space, automation, accuracy and transparency have never been more critical to private market fundraising. We are confident the addition of E-Subdocs to our Gen II platform further enhances and improves the fund subscription experience for both limited partners and PE Fund managers.”

About Gen II
Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors. Since its inception in 2009, the company has become one of the largest independent private capital fund administrators, with more than $900 billion of private fund capital under administration. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling GPs to manage their operational infrastructure, financial reporting, and investor communications most effectively. For more information, please visit www.gen2fund.com.

Contact:
Daniel Abramson
BackBay Communications
857-305-8441
daniel.abramson@backbaycommunications.com