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.
LUXEMBOURG, March 2, 2022 — Gen 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.
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.
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.
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.
LUXEMBOURG, October 26, 2021 —Gen II Luxembourg Services, SARL (“Gen II”), a wholly-owned subsidiary of Gen II Fund Services, LLC, a leading independent private equity fund administrator, today announced the firm’s Information Security Management System has earned the ISO 27001 certification. This certification underscores Gen II’s commitment to meeting clients’ data security needs and operating with the highest cybersecurity standards.
ISO 27001 is widely regarded as the international standard for information security management. Validated by PECB MS, a global provider of audit and certification services, this certification affirms that Gen II meets ISO requirements for establishing, implementing, maintaining, and continual improvement of an information security management system.
The Information Security Management System certification scope includes:
Processes and Services: Security Policy and technology environments (Access controls, Physical and environmental security, BCP Fund administration, accounting, and communication)
Organizational Units: Information Technology Department for Gen II Luxembourg Services SARL
Locations: Gen II Luxembourg Services SARL Office
Networks and IT infrastructure: Gen II Luxembourg Services SARL Office and technology systems
“This notable achievement affirms that our controls, processes, and protections align with the most well-respected international security standards,” said Norman Leben, Managing Principal and Co-Founder, Gen II. “We are very proud to receive the ISO 27001 certification and we are thankful to our talented and experienced staff who have made this achievement possible.”
“As cybersecurity becomes a greater focus for our clients, this certification demonstrates that Gen II has the necessary protections and controls in place to protect our clients’ information,” said Steven Millner, Managing Principal and Co-Founder, Gen II.
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 is one of the largest independent private equity fund administrators with more than $600 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 ISO/IEC 27001:2013
ISO/IEC 27001:2013 (also known as ISO 27001) is the international standard for information security. These standards outline the best practices to help organizations manage their information security by addressing people, processes, and technology. Certification to the ISO 27001 Standard is recognized worldwide as an indication that your ISMS is aligned with information security best practices.
What Emerging Managers Want to Know About Fund Administration
Moving into 2022, the emerging manager market is poised to eclipse its pre-pandemic levels of new firm creation. Gen II began tracking this segment five years ago in our annual Emerging Managers Report, and, so far this year, we have seen more emerging manager opportunities than at any time since. This includes a record number of first-time funds seeking more than $1 billion in capital.
The Emerging Managers report examines how managers see themselves, looks into what’s realistic in terms of raising capital in a post-pandemic world, gets the LPs perspective and more. Notably this year, emerging manager prospects are performing deeper due diligence on fund administrators and service providers across the spectrum.
Their questions reflect a far deeper understanding of the drivers of operational success and a broader set of imperatives from the GP and LP view. For example, over 80 percent of fund manager respondents cited “proven expertise and experience with funds like mine” as an “extremely important” or “very important” factor in choosing fund administration service providers.
Interestingly, less than one third of respondents cited “a prior relationship with the provider” as a crucial factor in that decision. The questions posed by emerging managers and their LPs across many disciplines of the sponsor/fund administrator relationship include:
Can the fund administrator demonstrate scalable solutions as sponsors raise more capital?
Are they regularly investing in technology to meet the enhanced reporting needs of investors and internal stakeholders?
Have they instilled a corporate culture that ensures long-term stability across the service team and firm?
Do they provide specifics on the team that services the engagement – is it a dedicated team, or will the sponsor need to call separate departments for separate tasks?
What access to fund information can the sponsor have in an on-demand fashion?
And how is the fund administrator ensuring data protection and defense against cyber threats?
To get the answers to these questions and see how new managers are making their mark and standing out in a crowded market, read our full report: Buyouts: Emerging Managers Report.
Duncan J. Christie joins as Head of Operations and Client Services and a Member of the Executive Committee, and Eva Ntovolou joins as Global Data Protection
NEW YORK and LUXEMBOURG September 15, 2021 — Gen II Fund Services, LLC and Gen II Luxembourg Services, SARL (“Gen II”), a leading independent private equity fund administrator, announced today that it is adding to its Luxembourg-based team. Duncan J. Christie has joined the firm as Head of Operations and Client Services and a Member of the Executive Committee, and Eva Ntovolou joined the firm as Global Data Protection Officer.
Mr. Christie, a seasoned operations executive, will focus on developing our operational model and the provision of best-in-class client delivery, helping to drive Gen II’s continued growth across Europe. Ms. Ntovolou, an experienced data protection executive and an attorney, will support the firm’s data protection needs across Europe and the U.S.
Mr. Christie joined Gen II from International Financial Data Services Luxembourg (IFDS), where he served as Chief Operating Officer, responsible for operations, client service, managing business transformation, and research & development. Prior to IFDS, Mr. Christie was Chief Operating Officer and a member of the Board of Directors of State Street Services Luxembourg, focused on private equity and real estate servicing. He is a member of the Association of Luxembourg Fund Industry (ALFI) and serves as co-chair of the Fund Distribution and TA group in the ALFI Digital/FinTech Forum. He holds CFA, CAIA, and FDP Charters and received his MBA from the University of Oxford, England.
“We are excited to have Duncan join Gen II,” said Norman Leben, Co-Founder and Managing Principal, Gen II. “He understands that the client experience drives our business, and his extensive operational experience and commitment to client service will be valuable assets to Gen II and support the firm’s growth objectives.”
“Even as Gen II has continued to grow, they have maintained their client-centric model and partnership approach to relationships,” said Mr. Christie. “I’m extremely pleased to join the Gen II team and look forward to collaborating with Gen II’s world-class group of professionals and getting to know the company from the ground up.”
Most recently, Ms. Ntovolou was at Deloitte Luxembourg, where she led the group’s GDPR implementation and data protection function. Prior to Deloitte Luxembourg, she held several roles in the field of privacy and IT security and as an in-house legal consultant. Ms. Ntovolou also had her own law practice, which she founded in 2014.“We are very pleased to have Eva on the Gen II team,” said Steven Millner, Co-Founder and Managing Principal, Gen II. “With her data protection expertise, legal background and European experience, we are confident she will provide immediate contributions in support of our clients’ global data protection needs.”
“Gen II is one of the most innovative firms in the fund administration industry, serving some of the world’s leading fund sponsors,” said Ms. Ntovolou. “I look forward to working with the dedicated and highly regarded professionals at Gen II to ensure compliance with data protection rules.”
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 scaled rapidly and today is one of the largest independent private equity fund administrators servicing more than 5,000 fund entities, reporting to approximately 50,000 investors on behalf of their clients, and administering more than $600 billion of private fund capital. Gen II offers private fund sponsors a best-in-class combination of people, process and technology, enabling GPs to most effectively manage their operational infrastructure, financial reporting and investor communications.
$650 Billion Global Asset Manager Gets Results with a Liftout
Gen II fund administration sets growth foundation.
A $650 billion-plus global asset manager decided to pursue a liftout of its fund administration operations and turned over these duties to Gen II. By outsourcing to Gen II, the asset manager not only saw greater efficiencies and capabilities but the liftout ultimately provided a foundation for growth.
Asset managers typically begin to consider outsourcing fund administration duties after one of the following events, or a combination of them:
They discover the company’s legacy technology infrastructure is so dated that it’s incompatible with the latest front-office tools or reporting software.
Back-office and middle-office professionals begin to leave without a defined career path.
Compliance or operational risks spike due to rote manual processes and the latency feeding downstream systems.
