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Appointments of CEO, President, Chief Administrative Officer, Head of Client Delivery and Innovation
Position Leading Private Capital Fund Administrator for Continued Growth

NEW YORK, June 15, 2022 — Gen II Fund Services, LLC (“Gen II”), a leading independent private capital fund administrator, today announced the appointment of Steven Millner as Chief Executive Officer.

Since co-founding Gen II in 2009, Mr. Millner has served as a Managing Principal and as a member of the Firm’s Executive Committee. Mr. Millner, along with his co-founders, have been leaders in the administration of private capital funds for over 25 years. Their experience extends from assisting with the launch of emerging managers to working with the world’s leading private capital fund managers.

In concert with Mr. Millner’s appointment, Gen II Co-Founder Steven Alecia has been appointed President. He previously served as Chief Client Officer. Co-Founder Norman Leben will step down as Managing Principal. Mr. Leben will remain as a senior advisor to the Firm, a Board Member and continue to guide the Firm’s European expansion.

“I am honored and humbled to assume the role of CEO,” said Mr. Millner. “My sincere gratitude to Norman and Steve and all those at Gen II for making this possible and for our remarkable achievements. This is an exciting time at Gen II and for our industry, and I have never been more enthusiastic about our future.”

“We are very pleased to have Steven assume the role of CEO,” said Mr. Leben. “Steven has played a critical role in Gen II’s growth and is committed to maintaining its operational excellence, developing our offerings, driving innovation and pursuing the Firm’s global growth strategy.”

“We are looking forward to having Steven at the helm, and I’m very confident in his ability to lead the stellar team at Gen II and drive not only our Firm’s success, but also the success of our clients,” said Mr. Alecia.

In addition to Mr. Millner’s appointment, Michael Pollack has joined the Firm as Head of Client Delivery and Innovation and Matthew Luongo has joined as Chief Administrative Officer. Most recently, Mr. Pollack served as Founder and CEO of Pollack Consulting Group, an independent management consultancy focused on strategy, operational, and technology solutions. Previously, he served as Managing Director and Global Head of the Portfolio Analysis Group at J.P. Morgan and as Managing Director and Divisional CFO of Markets Operations Technology at Citigroup. Mr. Pollack holds a B.A. in Computer Science from Princeton University and an MBA from the Stanford Graduate School of Business.

Mr. Luongo has joined Gen II as Chief Administrative Officer. Prior to joining Gen II, Mr. Luongo founded MJ Management Solutions, a business management consulting firm. He previously held executive level roles at CLS Bank, Cognizant Technology Solutions, UBS and American Express, providing strategic and operational expertise to optimize organizational effectiveness, efficiency, and employee experience. Mr. Luongo holds a B.S. in Business Administration from the University of Nebraska-Lincoln and an MBA from Pace University.

“With Michael and Matt’s deep expertise in financial services and operations, we’re confident that they will make an immediate impact at Gen II, further enhancing our efficiency and strengthening the world-class service that is the hallmark of Gen II,” said Mr. Millner.

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 $850 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

Partnership bolsters firm’s global cloud and security platform;
Exemplifies commitment to best-in-class operations

NEW YORK, June 9, 2022 — Gen II Fund Services, LLC (“Gen II”), a leading independent fund administrator in the alternative investment space, today announced it has chosen NTT Ltd., a leading global technology services provider, as its managed cloud services provider to accelerate its digital transformation journey.

Gen II Fund Services leveraged NTT’s advisory and digital services experts to modernize and manage its IT infrastructure to improve operational efficiencies and enhance its customer service.

The new multi-year agreement will consolidate Gen II’s cloud support and security desks into a powerful platform leveraging NTT’s global scale and industry-leading hybrid cloud capabilities, providing the firm and its clients with enhanced efficiency, security, and scalability in a singular global solution.

The partnership will create a service desk available 24/7/365 to all Gen II staff globally across time zones. Strategically located onshore in the U.S., the service desk will further improve the consistency and coverage of Gen II’s world-class client service.

“We are pleased to partner with NTT as we continue to further enhance our technology infrastructure and provide our clients with innovative technology solutions,” said Steven Millner, Managing Principal and Co-Founder, Gen II. “Gen II was an early adopter of cloud infrastructure and digital solutions and through our partnership with NTT, we continue to invest in a scalable global platform for future growth.”

“By bringing NTT’s expertise in cloud services and security to Gen II Funds, we have designed and will manage an innovative cloud infrastructure that will enable Gen II to deliver superior customer service, while improving operational efficiencies,” said Tyler Affolter, Senior Vice President, Managed Services, NTT Ltd.

About Gen II
Gen II is a leading fund administration provider focused entirely on serving the alternative asset management space, including private equity, real estate, and credit funds. Since its inception in 2009, the company has been one of the largest independent private equity fund administrators, with more than $700 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.

About NTT
NTT Ltd. is a leading, global technology services company. To help our clients achieve their digital transformation goals, we use our global capabilities, expertise, and full-stack technology services delivered through our integrated services platform. As their long-term strategic partner, we help them enhance customer and employee experience, transform their cloud strategy, modernize their networks and strengthen their cybersecurity. And across their transformation priorities, we automate their business processes and IT, drawing insights and analytics from their core business data. As a global ICT provider, we employ more than 50,000 people across 57 countries, trading in 73 countries and delivering services in over 200 countries and regions. Together we enable the connected future.
Visit us at services.global.ntt

Contact:

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

For private equity funds, the administrative back office functions can accelerate exponentially with a firm’s rapid growth. Quickly, the core business that requires leadership’s focused attention — deal identification and preparation, stakeholder relations, research, analysis — can take a back seat to the operational administrative functions required to maintain reporting and compliance.

A leading fund of funds investment firm with over $4 billion Assets Under Management (AUM) found themselves in just such a situation after self-managing their fund administrative functions in-house. Soon their reporting volumes which were being managed manually had outgrown their existing capabilities.

They realized that the best way to ensure future growth and keep pace with their expanding client portfolio and related back office functions was to consider fund management outsourcing services.

Private Equity Fund Administration Outsourcing Services & Solutions

Most funds start out managing their back office administrative services in-house but can find over time that their concentration on these back-end services takes away valuable focus from their core business priorities. This creates challenges for asset management and financial advisors that find they no longer have the time needed to address their priorities.

For these funds of funds investment managers, the decision to outsource through Gen II was a sound decision that protects their future growth while also providing financial savings and, most importantly, allowing them to reprioritize and address their investment-related priorities.

Through a structured and phased data transfer for one of their initial funds, the client was able to move their valuable client information to Gen II’s reporting and analytics platform where immediate outsourcing benefits and cost savings were recognized. From there, an additional 18 existing funds and nine new funds were transferred to the Gen II platform.

Benefits of Outsourcing Investment Management

With Gen II’s investment management outsourcing, the fund of funds recognized operational efficiency and enhanced data tracking. Private equity business process outsourcing allowed them to reap the following benefits:

  • Automated reporting and financial statement capabilities, including Gen II’s proprietary statement-generating functions that streamlined administrative processes.
  • Gen II brings the oversight needed along with asset expertise with no expansion of the fund’s internal financial department.
  • Risk has been reduced through Gen II’s automated reporting tools. Manually prepared investor reports and statements have been replaced, while consistent reporting is ensured.

Best Funding Platform for Transition

The key to this client’s successful transition rests with the Gen II reporting and analytics platform which takes large amounts of data and transforms it for seamless reporting to keep a fund and its client investors fully informed. Gen II’s purpose-built suite of proprietary technology tools are fully compliant, powerful, and cloud-based, so clients can rely on Gen II’s outsourcing services.

How Gen II Safeguards Fund Administration Through Zero Trust 

Financial services is a high-value target for hackers, and private equity is no exception.

Most companies today say they do everything possible to secure systems, but in a security climate teeming with threats — especially financial services — standards have dramatically shifted. As a result, Gen II has moved to a Zero Trust strategy and continues to implement strong industry-specific compliance controls to protect your data. 

Zero Trust strips implicit trust from the security equation and requires validation for every digital interaction. This is a new high-water mark in cyber protection embraced not only by the federal but leading enterprises as well.

Mitigating human error  

One of the primary goals of Zero Trust is to prevent human error from causing a breach. For that reason, Gen II deploys state-of-the-art fund administration technology and regularly tests our company’s network vulnerabilities and readiness with the assistance of third parties. 

With so many people working from home in the wake of the pandemic, the threat level has only increased. Even the most conscientious employees occasionally let down their guard. Gen II understands this and trains fund administration employees on proper cybersecurity behavior and reinforces positive practices when it comes to data protection.

Overall, our security protocols are designed to remove the ability of bad actors from exploiting errors in judgment.

More specifically, Gen II employs are: 

  • Multi-factor authentication for accessing the company’s network.
  • Limits data availability to those who need it.
  • Prevents users from sending attachments. 
  • Blocks the printing of materials at home where data can leak in the form of hard copies. 

For more about Gen II’s highest quality controls, read our report: Data Protection in the Age of Cybersecurity Threats

Leading Real Estate Solution Strengthens Gen II’s Product Offerings and Enhances Platform

NEW YORK and VANCOUVER, March 14, 2022 — Gen II Fund Services, LLC (“Gen II”), a leading independent fund administrator in the alternative’s investment space, today announced the acquisition of Update Capital, a leader in investment management technology solutions for the real estate asset class. Terms of the transaction were not disclosed.

Founded by Ran Kohavi and Itamar David, Vancouver-based Update Capital provides an automated, cloud-based solution for real estate sponsors to manage their assets, engage their investors, and connect with new prospects. The product offers asset-level data as well as financial and transactional data providing visibility to both the manager and investors. Ran Kohavi, Co-Founder and CEO of Update Capital, will join Gen II as Chief Product Technology Officer.

“We are thrilled to bring Update Capital on board and to add their expertise and technology capabilities to the Gen II platform,” said Steven Millner, Managing Principal and Co-Founder, Gen II. “Given the amount of capital in the alternative investments space, automation, accuracy and transparency have never been more critical, and Gen II is committed to delivering leading-edge technology and solutions to our clients.”

Led since 2009 by its co-founders, Steven Millner, Steven Alecia and Norman Leben, Gen II has worked with more than 250 sponsors spanning the private equity industry, including buyout, fund of funds, real estate, infrastructure, credit, and other closed-end structures. Gen II clients span the industry from emerging managers to the most significant global PE fund sponsors.

“Like Gen II, Update Capital prides itself on unparalleled client service, and we’re excited to join a true global industry leader with a forward-thinking mindset,” said Ran Kohavi, Co-Founder and CEO of Update Capital. “We’re looking forward to working together to help sponsors efficiently and effectively respond to the growing demands of the industry and increase client satisfaction.”

“Bringing in Ran and his team accelerates our ability to build on our technology capabilities to better support our clients across the alternatives space,” said Steven Millner, Managing Principal and Co-founder at Gen II. “We are confident that expanding our platform by investing in proven technology solutions, like those of Update Capital, will enable a more robust client experience. And it will allow Update Capital’s clients to seamlessly tap into Gen II’s broad range of fund administration and related technology services.”

About Gen II

Gen II is a leading fund administration provider focused entirely on serving the alternative asset management space, including private equity, real estate, and credit funds. Since its inception in 2009, the company has been one of the largest independent private equity fund administrators, with more than $700 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:
Beth Herlihy
BackBay Communications
617-259-7066
Beth.herlihy@backbaycommunications.com

 

LUXEMBOURG, March 2, 2022Gen II Luxembourg Services, SARL (“Gen II”), a wholly-owned subsidiary of Gen II Fund Services, LLC, a leading independent private equity fund administrator, announced today the successful completion of the firm’s International Standard on Assurance Engagements (ISAE) 3402 Type I Report in the areas of fund accounting, transfer agency, and depositary services.

The ISAE 3402 is an internationally recognized auditing standard issued by the International Auditing and Assurance Standards Board (IAASB). A service organization’s auditor’s examination, in accordance with the standard, represents an in-depth audit of a service organization’s control objectives and activities. These activities often include controls over information technology and related processes.

A leading international accounting firm conducted an independent audit to examine the design and effectiveness of Gen II’s controls. The ISAE 3042 Type I report demonstrates to Gen II clients and the private equity community the quality of back-office controls at Gen II and that the firm has adequately described its internal controls and processes that are in place to achieve client objectives.

“The successful completion of a fund administrator’s ISAE 3402 Type I Report is imperative for private fund sponsors and their Limited Partners to satisfy their operational and due diligence assessments, and we’re proud to receive this report on our control environment,” said Norman Leben, Managing Principal and Co-Founder, Gen II. “This recognition validates the completeness of our internal quality controls, which along with our world-class technology and staff, enable us to provide the highest-level service and expert guidance for which Gen II is known.”

About Gen II

Gen II is a global fund administrator with more than $700 billion of private fund capital under administration.  As the second largest private equity fund administrator in the United States, Gen II focuses solely on the alternative asset management space, including private equity, real estate, credit managers, fund-of-funds, and emerging managers. The company provides private fund sponsors with a best-in-class combination of experienced people, streamlined processes, and proprietary technology solutions to help GPs manage their operational infrastructure, reporting, and investor communications. For more information, please visit www.gen2fund.com.

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Contact:
Philip Nunes
BackBay Communications
617.391.0792
Phil.nunes@backbaycommunications.com

How to Quickly Scale Private Equity Operations

Choose a fund administrator that can tailor processes to your growth

Not all fund administrators are built alike.

Many lack the resources to adequately enable the rapid growth of some of their private equity clients. One of these companies in particular turned to Gen II to help.

This client’s previous fund administrator employed too small a staff, and its systems weren’t robust enough to meet the needs of the sponsor, which was scaling quickly. 

Freeing funds to accelerate investment

Soon after switching to Gen II, our staff found that, in some cases, the general ledger lacked sufficient explanations and supporting documentation. Gen II went to work to collect the necessary data and then implemented a strategy that freed sponsors to accelerate their pace of investment and fundraising.

In the past three years, our client has attracted twice the number of investors, and commitments to the client’s latest fund have surpassed $4 billion.

For more about how Gen II helps enable their client’s growth, read our report:  The Switch: A Facilitator of Growth.

Why Your Fund Administrators Need to Be as High Performing as Your Deal Teams 

A complex competitive climate requires private equity funds to demand the most from fund administration service partners.

Private equity firms place enormous emphasis on assembling the best dealmakers. The deal team is key to spotting and analyzing opportunities quickly. But to compete nowadays, the general partners (GPs) must demand the same high standards of performance throughout the firm, including (and especially) in fund administration; i.e., the back office. 

A high-performing private equity fund administrator can help quickly navigate steadily rising stakeholder expectations and stay ahead of ever-increasing operational complexities as well as the labyrinth of regulatory requirements. 

Ask about these three fund administration focus areas

Private equity firms seeking to outsource their fund administration should focus on three key areas before selecting a third-party administrator.

  • Innovative technology: Has the administrator built an innovative technology platform? Today’s investors have come to expect receiving granular information in near real time about prospective deals. Can the prospective administrator’s platform handle this as well as address the specific needs of fund managers? 
  • Specialized expertise: The accelerating rate of technology evolution means that a GP’s legacy resources, and technology may need specialized expertise to help them keep pace with the competition. 
  • Stable operational foundation: Funds shouldn’t have to worry about back-office staffing, training or turnover when they expand into new geographies or employ new strategies. 

For more about how Gen II helps private equity clients not just prepare for the future but to also mitigate risk, read our report: Shouldn’t your back office be as high-performing as your deal team?

NEW YORK, NEW YORK, February 24, 2022 — Gen II Fund Services, LLC, a leading independent private equity fund administrator, announced today the successful completion of the firm’s System and Organization Controls (SOC 1), Type II Compliance Report.

The SSAE 18 is a set of guidelines for reporting on the level of controls at a service organization. The SOC 1 Type II audit tests and reports on the fairness of the presentation of the management’s description of the service organization’s system, as well as the design and operating effectiveness of its controls.

A major international accounting firm conducted an independent audit to examine the design and operating effectiveness of Gen II’s controls for the period from December 1, 2020 to November 30, 2021. The report certifies, for Gen II clients and the private equity community, the strong back-office controls at Gen II. It also affirms that the firm has adequately described its internal controls and processes that are in place to achieve client objectives.

“Quality, as defined through compliance with reporting standards, governing documents and internal policies and procedures, is integral to our culture as demonstrated by the establishment of the Quality Control Department at inception,” said Merryn Rosewall, Principal – Quality Control at Gen II. “An unqualified SSAE 18 attestation is of critical importance to our clients, their limited partners and our business.”

“This report reflects our core philosophy and results from the hard work and dedication of our people,” said Steven Millner, Managing Principal and Co-Founder, Gen II. “Together with our leading technology solutions and experienced team, this achievement provides a robust foundation on which we continue to advance our service offerings.”

About Gen II
Gen II is a global fund administrator with more than $650 billion of private fund capital under administration. As the second largest private equity fund administrator in the United States, Gen II focuses solely on the alternative asset management space, including private equity, real estate, credit managers, fund-of-funds, and emerging managers. The company provides private fund sponsors with a best-in-class combination of experienced people, streamlined processes, and proprietary technology solutions to help GPs manage their operational infrastructure, reporting, and investor communications.

NEW YORK, February 7, 2022 – Gen II Fund Services, LLC, a leading independent private equity fund administrator, is pleased to announce the recent promotion of six of its client service professionals to Principal, bringing the number of Gen II Principals to thirty-three (33).

“It is an honor to recognize these talented and dedicated professionals that have been so dedicated to Gen II,” said Steven Millner, Managing Principal and Co-Founder of Gen II. “These promotions reflect our longstanding commitment to invest in our most important asset – our people.”

Gen II 2022 Principal Class:
Joshua Feldstein
Jonathan Goldstein
Michael Hall
James Myers
Yeva Rakhamimova
Richard Zheng

“These high achieving team members have consistently provided expert guidance and the highest level of service to our clients,” said Steven Alecia, Chief Client Officer and Co-Founder of Gen II. “We look forward to their continued success and valuable contributions at Gen II.”

About Gen II

Gen II is a global fund administrator with more than $650 billion of private fund capital under administration.  As the second largest private equity fund administrator in the United States, Gen II focuses solely on the alternative asset management space, including private equity, real estate, credit managers, fund-of-funds, and emerging managers.  The company provides private fund sponsors with a best-in-class combination of experienced people, streamlined processes, and proprietary technology solutions to help GPs manage their operational infrastructure, reporting, and investor communications. For more information, please visit www.gen2fund.com.