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Gen II Fund Services Receives Its 2020 System and Organization Controls (SOC 1) Type II Compliance Report

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BOSTON, February 3, 2021 — Gen II Fund Services, LLC, a leading independent private equity fund administrator, today announced the successful completion of its System and Organization Controls (SOC 1), Type II Compliance Report.

A major international accounting firm examined the design and effectiveness of Gen II’s controls for the period December 1, 2019 to November 30, 2020.  Gen II’s service and control environment is developed and delivered in adherence with the fund administration industry’s best practices. The report also provides Gen II clients and the private equity community confirmation that they have adequately described its controls and that those controls are designed and operating effectively to achieve client objectives.

“Private fund sponsors and their Limited Partners require a fund administrator’s successful SOC I, Type II examination to satisfy their operational and due diligence assessments,” said Steven Alecia, Gen II’s Chief Client Officer. “We are proud to now have received an unqualified report on our control environment for 12 consecutive years. This recognition is testament to the soundness of our internal quality controls and emblematic of the world class service and expert guidance that are the hallmark of Gen II.”

About Gen II

Gen II is one of the largest independent private equity fund administrators, administering over $375 billion of private capital on behalf of its clients with offices in New York, San Francisco, Boston, Stamford, Dallas, and Luxembourg. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling fund sponsors to effectively manage their operational infrastructure, financial reporting, and investor communications. The Gen II team is one of the most experienced and longest tenured teams in the private equity fund administration industry, with broad expertise across buyout, funds of funds, real estate, energy, infrastructure, credit, co-investment, hybrid funds, feeder funds, venture capital, retail, and managed accounts.

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

Gen II Fund Services Relocates Boston Office

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BOSTON, Jan. 19, 2021 /PRNewswire/ — Gen II Fund Services, LLC, a leading independent private equity fund administrator, today announced that the firm has relocated its Boston office. The new address is 175 Federal Street, 16thFloor. The move was effective January 1, 2021.

Located in Boston’s financial district, the office space features a modern design and an open floor plan. The new facility is more than triple the size of Gen II’s previous Boston client service center, which opened in 2017. Gen II also has offices in New York, San Francisco, Stamford, Dallas, and Luxembourg.

“As the largest independent private equity fund administrator, Gen II has a long-established strategy of continually enhancing our service capabilities across the United States,” said Norman Leben, Managing Principal and Co-Founder, Gen II. “Growing our office in Boston is in keeping with that effort. With this expanded service center, we are doubling down on Gen II’s commitment to the Boston market and to serving clients with a greater presence in the region.”

“The facilities at 175 Federal have been fully modernized and purpose-built to support and enable a distributed workforce,” said Steven Millner, Managing Principal and Co-Founder, Gen II. “With this significantly increased space and enhanced amenities, we are future-proofing the services Gen II will be able to provide to clients from the Boston office. As we grow, we will continue to invest in our people, processes and technology to provide best-in-class fund administration.”

About Gen II
Gen II is one of the largest independent private equity fund administrators, administering over $375 billion of private capital on behalf of its clients with offices in New York, San Francisco, Boston, Stamford, Dallas, and Luxembourg. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling fund sponsors to effectively manage their operational infrastructure, financial reporting, and investor communications. The Gen II team is one of the most experienced and longest tenured teams in the private equity fund administration industry, with broad expertise across buyout, funds of funds, real estate, energy, infrastructure, credit, co-investment, hybrid funds, feeder funds, venture capital, retail, and managed accounts. 

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Liftouts: An Enabler to Reimagine Back-Office Operations

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As back- and middle-office demands grow in volume and complexity, liftouts provide an alternative for private equity firms concerned about continuity

By Steven Millner, Managing Principal and Co-Founder, Gen II Fund Services, LLC

Two primary factors motivate private equity firms to outsource their fund administration function: either they want to scale their operations or they want to future-proof and de-risk their business. Sometimes the motivation is a combination of the two. The catch, however, is that many larger and longer-tenured PE firms have already invested so much time and capital into their back- and middle-office operations that nobody wants to admit these efforts have become a sunk cost.

Increasing back-office risk, for instance, can range from data protection and cyber security threats to the “key man” risk that has become more pronounced across the IT function. Many firms also desire a lighter, more agile operating structure, particularly given the challenges to recruit, retain, and upskill back-office professionals. Each of these considerations have only become more complicated by the increasing sophistication required for fund administration, as fund lives extend longer, co-investments become ubiquitous, and LPs request more information.

The transition from insourced fund administration to an outsourced model can seem overwhelming. It’s in these situations that a liftout can provide continuity as GPs leverage the benefits available through specialization and adapt a business model that better fits their current needs.

A Lighter Lift for Fund Operations

To be sure, the concept of a liftout can mean different things to different people. In some cases, it resembles a traditional outsourcing arrangement, although the fund administrator may take on certain in-house personnel. In other scenarios, a liftout may be more strategic to the administrator, whether it delivers new capabilities required for a specific asset class or represents an opportunity to extend their footprint geographically. In certain cases, a liftout resembles a true acquisition or carveout, in which GPs are paid by the fund administrator for their existing infrastructure.

In each scenario, the liftout offers an improved future state to better manage operational risk, create scalability, and keep pace as technologies and reporting systems evolve.

Accelerated Pace of Innovation

Consider just the increased data and technology demands that have become more acute across back-office operations.

Third-party fund administrators continue to raise the bar in this area. GPs still reliant on excel are already at a noticeable disadvantage, while those who have made investments in their back-office systems are today struggling to upgrade and maintain this technology to stay ahead of an accelerating innovation curve. A liftout provides an alternative for GPs to potentially monetize their earlier investments in this area and stay current as new technologies proliferate.

Deeper Expertise

The expertise available through specialists is just as critical, particularly when entering foreign jurisdictions, interpreting new regulatory and accounting guidance, or adapting to evolving reporting standards. Gen II has serviced hundreds of funds and has recurring interactions with thousands of LPs across the world. Contrast this experience with a traditional in-house team who may only raise a new fund every few years, with little if any exposure as to how their peers are interacting with LPs day in and day out.

This expertise also translates into scalability, as third-party fund administrators can effectively “turn on” a new product within days or weeks versus the months typically required by an in-house team to ramp up new offerings.

Renewed Focus

Perhaps the biggest benefit for GPs is just the ability to focus on core competencies, which for most sponsors revolve around deal sourcing and value-creation initiatives. Beyond just minimizing administrative distractions, outsourcing will influence decisions around personnel and even strategic initiatives within the firm.

Moreover, fund administration is usually considered a tertiary activity within most general partnerships. For fund administrators, though, this is their focus. It’s the first thing they think about when their day begins and their day doesn’t end until they’ve tackled each and every deliverable.

Cues to Persistence

Not to be overlooked, LPs often prefer outsourced fund administration, a trend that gained momentum in the wake of the Bernie Madoff scandal and has only picked up steam since. In fact, most institutional investors will insist emerging managers outsource fund administration from the get-go. But for longer-tenured GPs, a liftout can offer supporting cues around succession planning and the ongoing “institutionalization” of the business. And post COVID, there is even more emphasis from LPs on business continuity and disaster-recovery plans, which again favors an outsourced model.

Many GPs may not realize the extent to which the fund-administration industry has evolved over the past decade.What began as an accounting role has transformed into an “information” engine and clearinghouse to provide transparency and substance to LP reporting, meet ever-changing compliance requirements, and support front-office decisions. In this sense, the back- and middle-office has become a complicated and high-performing hub that itself requires focus and ongoing investment to keep pace with the rigors of the job.

Most sponsors well know the value of specialization. And most also recognize the value proposition of third-party fund administrators, who can help GPs future proof their own business and position themselves for growth. Yet the inertia of “the way it has always been” can still stand in the way of better, more effective alternatives. It’s in these circumstances that a liftout represents a compelling compromise to access the advantages of specialization over continuing with the status quo.

Q&A: Luxembourg Calling

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One year after the liftout of Quilvest Luxembourg Services S.A., Gen II Co-Founder and Managing Principal Norman Leben outlines how the investment is paying off as domestic fund managers look to Europe to diversify their investor bases.

Gen II Fund Services completed its acquisition of Quilvest Luxembourg Services S.A. last December. Since then much has changed, as the COVID-19 pandemic has accelerated working remotely, forced sponsors to analyze their core competencies, spurred necessary technology enhancements and implementations, and only reinforced transparency demands among limited partners.

Norman Leben, in a wide-ranging discussion, highlighted the original thesis behind the Gen II investment to acquire the Quilvest operations and touched on how the private equity landscape continues to evolve one year later.

Q: It’s been a year since Gen II executed a liftout to acquire the PE and real estate administration operations of Quilvest. Looking back, can you discuss the drivers behind the deal and how those have played out over the past 12 months?

LEBEN: This was a strategic investment for us and reflects both the growth of Gen II over the last 11 years and the growth of our clients. As it currently stands, a very large proportion of our client base has either already raised money in Europe, is in the process of doing so currently, or soon will be based on their future roadmap.

At a high level, three core drivers really informed our thesis behind the Quilvest liftout. The first consideration, just given our clients’ interest in Europe right now, was that this investment provided instant scale and deep in-house experience to service both private equity and real estate funds in Europe.

Another factor is that almost universally, our clients that have expanded into Europe have utilized Luxembourg fund structures to do so. This speaks to both the favorable tax regime in the country as well as the disciplined regulatory environment, providing a high degree of investor confidence. Sponsors raising money through a Luxembourg investment structure have to use a CSSF-licensed Luxembourg administrator. So the Quilvest liftout provides a compelling avenue through which we can demonstrate our value proposition, particularly among large global fund managers based in the U.S. who, to date, haven’t considered outsourcing but are compelled to embrace these services in Europe.

Finally, Luxembourg represents a key piece in our ability to provide a true one-stop shop for global fund managers. Private equity operations have become incredibly complex over the last decade. Regulatory demands are more pressing; LPs require more information and transparency than ever before; and GPs require more data to better operate and manage their own businesses. Each of these competing demands have helped to make the case for outsourcing non-core, back-office functions. Increasingly, LPs are aggressively pushing their fund managers in this direction. But GPs don’t want to manage different vendor relationships across multiple jurisdictions. They want one culture, seamless interactions, and continuity and consistency. Our Lux operations, today, allows us to expand the continuum across which we can meet our clients’ evolving needs.

This is a long way of saying that what we’ve discovered over the past year is that these factors do indeed resonate. We currently service over $6 billion of assets under administration through Gen II Luxembourg Services SARL. And for our clients that have not yet raised capital in Europe, we’ve had a number of conversations that suggest it’s only a matter of time before their interest turns to action. GPs in the U.S. have traditionally viewed Europe as being heavy handed when it comes to regulations and oversight. With our deep expertise and knowledge, we can help smooth over these barriers to entry, so we anticipate the fund managers we work with will begin to show an even greater appetite for global expansion.

Q: What are the biggest misconceptions when it comes to private equity fund administration in Luxembourg?

LEBEN: Generally speaking, there was a longstanding perception that fund managers turned to Luxembourg as a tax-avoidance strategy. That’s not the case at all. Often Luxembourg is confused with Lichtenstein, which has historically been considered a tax haven for foreign investors. However, to managers active in Luxembourg, particularly cross-border investors, the country’s draw traces back to the fairness of the tax regime and similarities to the U.S. as it relates to flow-through entities so investors aren’t being taxed twice on the same income or capital gains. Along with the rest of the European Union, Luxembourg has adopted the Anti-Tax Avoidance Directive (ATAD II), which expanded the scope of ATAD I and largely follows the OECD’s recommended framework around BEPS[Base Erosion and Profit Shifting].

It’s not a misconception necessarily, but many will often overlook the structuring flexibility of the jurisdiction. Fund managers have at their disposal a whole range of wrappers to choose from for Luxembourg-domiciled funds. Smaller funds, for instance, may gravitate to a Specialized Investment Fund (SIF), Special Limited Partner (SLP or SCSp) or SICAR wrappers [Sociétés d’Investissement à Capital-Risque], each of which fall under the CSSF’s jurisdiction. Larger funds, alternatively, may opt for a RAIF wrapper (Reserved Alternative Investment Fund), under the Alternative Investment Fund Managers Directive (AIFMD), or alternative structures, depending on the specific strategy, the LPs being targeted for a fund, or other factors.

The point, though, is that the primary appeal for GPs is that Luxembourg provides a disciplined, credible, and business-friendly backdrop. This helps to explain why the country sits as the No. 2 jurisdiction for private equity assets behind only the U.S.

Q: Are there any recent developments on the regulatory front that GPs should be aware of?

LEBEN: There are always new updates around reporting and compliance. In July, for instance, a new rule regarding the Mandatory Disclosure Regime (also known as DAC 6) went into effect, which is again aligned to the OECD’s BEPS framework. The benefit of outsourcing, however, is that GPs can leverage their administration partners’ economies of scale and various areas of extensive knowledge. Our licenses require that we stay abreast of the new regulations and interpretations so clients can focus on their core competencies — sourcing investments, improving portfolio companies and internal operations, and securing profitable exits.

Generally, though, we’ve seen regulators in Europe – Luxembourg in particular — focus heavily on AML and KYC compliance. This stems back to the Bernie Madoff scandal almost 10 years ago. But AML compliance in Luxembourg can be particularly burdensome for fund managers. The CSSF last year, for instance, clarified that firms need to appoint two executives, one responsible for compliance [RR] and another for monitoring compliance obligations [RC], who “must be available in Luxembourg,” have sufficient knowledge around the AML regulation, and be familiar with the investment and distribution strategies of the fund manager. It just underscores the extent to which the CSSF is scrutinizing people, processes and systems as part of their oversight. Gen II has added these services to our platform.

Q: What are some other factors that GPs should keep in mind when it comes to establishing a Lux-domiciled fund?

LEBEN: The cost of raising a fund in Europe — both the start-up phase as well as ongoing maintenance — will be more costly than what many sponsors and investors are used to in the U.S. In addition, completing transactions, working through all of the different levels of governance and compliance generally requires more time.

For example, opening a bank account for the first time in Luxembourg could take four to eight weeks. You need to make sure you have met all the requirements with respect to raising capital and ongoing compliance from an AIFMD prospective. These are highly specialized roles, ranging from a licensed ManCo and fund administrator to a domiciliation agent, compliance and governance support professionals, depositary agent and local directors, in addition to other roles. And to state the obvious, an experienced law firm and auditor are paramount.

It’s not necessarily unique to Luxembourg, but technology is also becoming a bigger consideration for GPs everywhere. ALFI [the Association of the Luxembourg Fund Industry], in June outlined its key priorities over the next five years. And beyond broadening access to alternative investments, another priority is digital transformation. This is designed to help resolve existing pain points for managers and support the ongoing evolution of the legal and regulatory framework.

This is another area where investment managers can really leverage the economies of scale of their fund administration partners. The pace of innovation today demands continual reinvestment to ensure that technology and systems stay current with regulatory demands and reporting standards as well as the latest technologies to incorporate automation and advanced analytics into back-office processes. It used to be that fund managers would implement a new system and not have to think about it for another five to 10 years. Those days are long gone and a lot of fund managers are still underestimating how much of a commitment this will require in the years ahead.

Q: As you’ve brought on new clients over the past year can you highlight some of the overlooked benefits for fund managers launching a Lux-domiciled fund through Gen II?

LEBEN: We have onboarded a number of clients over the past 12 months and in each case, we are able to validate our thesis around the value of providing a seamless approach to clients’ global fund programs. In our ongoing conversations with our clients, for instance, one of the biggest attributes that stands out is just having one point of contact at Gen II for funds domiciled across the U.S., the Cayman Islands and Luxembourg jurisdictions.

Of course, other considerations are also important. For instance, across the board clients appreciate the deep program knowledge that resides with a dedicated Gen II global team, who make this information accessible and available as needed. The consistency and customization around investor-facing information and branding also eases some of the middle- and front-office challenges. Coordination to disseminate investor and fund information on time — and concurrently — eliminates some of the more acute reporting headaches and mitigates a common operational bottleneck. And technology, which allows for transparency around the global fund platform through one intuitive system, is fast becoming one of the biggest differentiators for Gen II.

Q: Do you have any recommendations for GPs considering a Lux-domiciled fund?

LEBEN: Luxembourg provides a very robust and stable business environment. The workforce is highly skilled and the country has a healthy and stable economy and political environment. Moreover, the tax regime is fair and the regulatory environment is well-ordered. Collectively, these factors instill confidence for investors investing in Europe through Luxembourg vehicles.

It is critical to select service partners that have the appropriate experience, knowledge and reputation in the community and with the regulators. This is especially the case for funds navigating the requirements for the first time. It can be a real education.

The Quilvest liftout gave us an incredible depth of talent, which we have built upon and continue to augment with long-tenured professionals with experience servicing hundreds of LPs as our business grows. This has been invaluable to not only help GPs comply with their regulatory hurdles, but also support the required hand holding and discover new efficiencies across an unfamiliar terrain.

We never could’ve predicted that a global pandemic would stir up the outsourcing opportunity landscape. But similar to previous disruptions, be it the global financial crisis or the dotcom bubble, the pandemic is reinforcing the appeal of businesses to focus on what they do best. Along these same lines, GPs are becoming more strategic in their openness to select service partners that are better equipped to support other critical segments of their business.

One year later, the thesis behind the liftout has really come together even better than we imagined. It is facilitating our own growth and providing our clients a one-stop solution to grow their own businesses.

Gen II Gains Significant New Investment From Global Investors to Fuel Continued Long-Term Expansion

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General Atlantic, Hg and IHS Markit aim to strengthen Gen II’s suite of solutions, supporting a growing customer base and generating further strategic growth

New York, New York, USA and London, UK. 6 November 2020: Gen II Fund Services, LLC (“Gen II”), a leading independent private equity fund administrator, announced today that it has secured a new strategic investment. General Atlantic (“GA”), a leading global growth equity firm, and Hg, a leading global software investor, together will lead the investment. IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, will also make a minority investment in the company. Cobepa S.A will continue to hold a minority position. The Gen II founders and management team will continue to hold a significant investment in Gen II whilst continuing to lead the business.

The terms of the transaction were not disclosed and closing of the transaction is conditional on customary anti-trust and regulatory approvals.

Led by its three original co-founders – Steven Millner, Steven Alecia and Norman Leben – since 2009, Gen II is a leading pure-play provider of alternative asset fund administration services. With headquarters in New York, New York and Luxembourg and serving a global client base, the company administers over $375 billion of private capital on behalf of its clients across more than 500 funds and their 25,000 investors, spanning various investment strategies including Buyout, Infrastructure, Energy, Real Estate, Fund of Funds, Credit and Retail.

Gen II is differentiated by providing a leading, tech-enabled platform offering a high-touch, premium service to its clients in fund administration, accounting, reporting and regulatory compliance. Mr. Millner, Mr. Alecia and Mr. Leben have built a strong team providing an industry-leading experience to the Firm’s clients, which has led to consistent, uninterrupted double-digit organic growth over the last 10 years.

Steven Millner, Steven Alecia and Norman Leben, co-founders of Gen II, said: “We are excited to partner with General Atlantic, Hg and IHS Markit to make Gen II even stronger. Our new investors each bring game-changing expertise to our Firm and our clients. General Atlantic brings 40 years of global growth equity investing and will be superb advisors as we expand our capabilities and reach. Hg, the largest software investor in Europe, brings deep software and service business intelligence that we will leverage to help refine our products. And IHS Markit, developers of WSO Software and iLEVEL, brings technology, analytics and product expertise that will help us transform the features and performance of our platform. This is a powerhouse combination.”

Gabriel Caillaux, Co-President, Managing Director and Head of EMEA at General Atlantic, said: “We are thrilled to partner with Gen II in its next phase of growth. Under the leadership of Steven, Steven and Norman, the business has become a critical player across the full fund lifecycle of the alternative asset ecosystem. We see significant potential to help drive market expansion across a growing global base of GPs and their investors.”

Aaron Goldman, Managing Director and Global Co-Head of Financial Services at General Atlantic, added: “Gen II’s embedded, quality solutions drive real value for its customers, demonstrated by the momentum of the business over the past decade. We look forward to leveraging General Atlantic’s deep expertise in financial technology, alongside that of Hg and IHS Markit, to further augment and expand its integrated technology platform.”

Thorsten Toepfer, Partner at Hg, said: “Today Hg is investing in a very strong business, which has built a differentiated profile to become the platform-of-choice for its industry. In line with the management team’s ambition, we see potential to scale further, both across the sector and across geographies. Hg has invested over $2 billion into wealth & capital markets as well as compliance services and technology platforms to date and we are looking forward to using this expertise to continue Gen II’s success together with our partners.”

Joris Van Gool, Partner at Hg, said: “We have actively followed the fund administration space for several years and during this time we’ve seen Gen II build a reputation as one of the most respected alternative asset administration tech platforms in the industry. The founders have been right at the heart of this the whole way and it is truly impressive what they and their team have achieved. Alongside them, and our new investment partners, we look forward to bringing our experience in fintech to see what we can achieve together.”

Adam Kansler, President of Financial Services at IHS Markit said: ”Through its innovation and value-added solutions, Gen II is a leader in fund administration for alternative assets. Given our growth strategy and commitment to enabling the success of private capital markets, we are pleased to invest additional resources with GA, Hg and the Gen II leadership team to further support our global GP and LP clients with best-in-class services.”

Advising the buy side on the transaction were HPS (debt financing), Skadden and Paul Weiss (legal), Raymond James (M&A), Linklaters (debt legal), PWC and EY (financial due diligence, tax and structuring), Bain (commercial due diligence) and Validus (FX). Advising Gen II on the transaction were Baird (financial advisor), Kirkland & Ellis LLP (legal) and Alvarez & Marsal (financial due diligence, tax and structuring). Advising Cobepa on the transaction was White & Case LLP (legal).

For further details:

General Atlantic
Mary Armstrong & Emily Japlon
media@generalatlantic.com

Hg
Tom Eckersley +44 (0)20 8396 0930
HG@brunswickgroup.com

Azadeh Varzi and Samantha Chiene (Brunswick, UK) +44 (0)207 404 5959
Alex Yankus and Harry Mayfield (Brunswick, USA) +1-917-818-5204

IHS Markit
Timothy Barello
timothy.barello@ihsmarkit.com
+1 646 679 3463

About Gen II
Gen II is one of the largest independent private equity fund administrators, administering over $375 billion of private capital on behalf of its clients with offices in New York, San Francisco, Boston, Stamford, Dallas, and Luxembourg. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling fund sponsors to effectively manage their operational infrastructure, financial reporting, and investor communications. The Gen II team is one of the most experienced and longest tenured teams in the private equity fund administration industry, with broad expertise across buyout, funds of funds, real estate, energy, infrastructure, credit, co-investment, hybrid funds, feeder funds, venture capital, retail, and managed accounts.

About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. Established in 1980, General Atlantic combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to build market-leading businesses worldwide. General Atlantic has more than 175 investment professionals based in New York, Amsterdam, Beijing, Greenwich, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai and Singapore. For more information on General Atlantic, please visit the website: www.generalatlantic.com.

About Hg
Hg is a leading global investor in software and services, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses. Hg has funds under management of over $30 billion, with an investment team of over 140 professionals, plus a portfolio team of more than 30 operators, providing practical support to help our businesses to realise their growth ambitions. Based in London, Munich and New York, Hg has a portfolio of over 30 software and technology businesses, comprising over 35,000 employees across the UK, US and Europe. For further details, please visit the Hg website: https://hgcapital.com

About IHS Markit
IHS Markit (NYSE: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth. For more information, visit www.ihsmarkit.com.

About Cobepa
Based in Brussels, New York and Munich, Cobepa is a privately‐held investment company backed by European families. Cobepa manages a diversified portfolio of private equity investments valued at approximately $3.0 billion. Cobepa invests in leading companies with superior business models, sustainable market positions and leading management teams. Cobepa North America is primarily focused on investments in the business services, technology-enabled services and healthcare sectors as well as situations requiring a more nimble investment partner.For more information, visit www.cobepa.com.

Preqin Ranks Gen II a Top Fund Administrator

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Firm Ranked #1 for Funds Over $1 Billion

NEW YORK, November 2, 2020 — Gen II Fund Services, LLC, a leading independent private equity fund administrator, has been named a top service provider in the recent Preqin special report, Service Providers in Alternative Assets. Preqin is a leading provider of data, analytics, and insights to the alternative assets industry.

Preqin ranked Gen II among the top 10 fund administrators in 13 categories. In terms of fund size for funds closed from 2019 through the first half of 2020, Gen II was among the top five servicers in three categories, including number one for funds of $1 billion or more. Other categories included closed first-time funds, and funds closed in specific asset classes such as private debt, real estate, infrastructure and natural resources. The firm was third in servicing private capital funds currently in the market (54), and fourth in the number of closed funds serviced for all time (231).

“As the Preqin report notes, quality of service is of paramount concern for general partners in selecting a fund administrator,” said Steven Millner, Managing Principal and Co-Founder, Gen II. “Our placement in the Preqin rankings is testament to the effectiveness of Gen II’s Well-Run Fund model, providing managers with best-in-class fund administration and technologies. We thank Preqin for this informative report and thank the numerous managers who continue to place their trust in Gen II.”

In compiling the Service Providers in Alternative Assets report, Preqin surveyed alternative fund managers in August 2020. Preqin used data on over 52,000 private capital funds, 440,000 private capital deals, 32,900 hedge funds, and 5,900 service providers from the company’s Preqin Pro platform. The report was published in September.

About Gen II

Gen II is one of the largest independent private equity fund administrators, administering over $350 billion of private capital on behalf of its clients. With offices in New York, San Francisco, Boston, Stamford, Dallas, and Luxembourg, Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling fund sponsors to effectively manage their operational infrastructure, financial reporting, and investor communications. The Gen II team is the most experienced and longest tenured team in the private equity fund administration industry, with broad expertise across buyout, funds of funds, real estate, energy, infrastructure, credit, co-investment, hybrid funds, feeder funds, venture capital, retail, and managed accounts. For more information, please visit www.gen2fund.com.

Robert Caporale Joins Gen II Fund Services as Head of Strategic Business Development

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NEW YORK, NEW YORK, October 19, 2020 — Gen II Fund Services, LLC (“Gen II”), a leading independent private equity fund administrator, announced today that Robert Caporale has joined the firm as Head of Strategic Business Development. Mr. Caporale, a seasoned fund administration and alternative investments executive, will focus on developing strategic client partnerships and acquisition opportunities.

Most recently, Mr. Caporale was CEO of Exchangelodge, a software company that provides mission critical data solutions to the alternative investment industry. Prior to Exchangelodge, he spent 12 years at JPMorgan where he held various senior positions within the Securities and Fund Services business, including Head of U.S. Sales, Head of Alternative Investment Services, CEO and Founder of Private Equity Fund Services, and Head of Strategic Business Development. He also spent six years at Deutsche Bank and eight years at IBM prior to his tenure at JPMorgan. Mr. Caporale was inducted into the Global Custodian Hall of Fame in 2013.

“We are very excited about Robert joining Gen II,” said Norman Leben, Co-Founder and Managing Principal, Gen II. “Robert’s knowledge of private equity fund administration and extensive experience within the alternative investment industry will be crucial in identifying partnership and acquisition opportunities to further advance Gen II’s business development objectives.”

“The addition of an experienced and well-respected executive like Robert to the Gen II team signifies our deep commitment to professional excellence and to the continued growth of our firm,” said Steven Millner, Co-Founder and Managing Principal, Gen II.

“I’m extremely pleased to be joining the Gen II team,” said Mr. Caporale. “I have known Norman and Steven for 15 years and always held them and Gen II in the highest regard. I am excited to join them at a time of significant growth for the firm. The Gen II team is a world class group of professionals that have an outstanding reputation in the private equity fund administration industry.”

About Gen II

Gen II is one of the largest independent private equity fund administrators, administering over $350 billion of private capital on behalf of its clients with offices in New York, San Francisco, Boston, Stamford, Dallas, and Luxembourg. Gen II offers private fund sponsors a best-in-class combination of people, process, and technology, enabling fund sponsors to effectively manage their operational infrastructure, financial reporting, and investor communications. The Gen II team is the most experienced and longest tenured team in the private equity fund administration industry, with broad expertise across buyout, funds of funds, real estate, energy, infrastructure, credit, co-investment, hybrid funds, feeder funds, venture capital, retail, and managed accounts.

Emerging Manager Report – 2020

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How the Pandemic Changed Everything in Private Equity

The pandemic wreaked havoc on the world and on business.

If there was a silver lining, the resulting paralysis and hardship in many industries taught important lessons. Some of those lessons were evident in the 2020 Emerging Manager Report, published by Buyouts in partnership with Gen II.

The survey, which polled more than 100 fund managers and 60 institutional investors, illustrated the trepidation that existed during the pandemic’s low point among LPs. Almost 90% of emerging managers said they believed the pandemic and international lockdowns would increase the difficulty of raising funds at least moderately.

Likewise, 66% of emerging managers who planned a fund launch said they decided to delay fundraising and 7% indicated they planned to abandon fundraising indefinitely.

Those emerging managers surveyed who had recently closed a fund were required to meet with an average of 97 investors in order to do so — at an average of six meetings per commitment.

The good news

Despite the bleak outlook held by some during that period, the demand for first-and-second-time funds remained high. Nearly 90% of institutional investor respondents reported that they would still back these vehicles. A similar percentage (91%) of managers said they expected to become more active in dealmaking to take advantage of low asset valuations.

Learn more about what LPs and how fund managers navigated the pandemic in our comprehensive report: Emerging Manager Report – 2020.

Gen II Luxembourg Services SARL adds two new members to its board of directors

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NEW YORK, NEW YORK June 25, 2020 / — Gen II Luxembourg Services SARL, the Luxembourg-based business of Gen II Fund Services, LLC (“Gen II”), a leading global private equity fund administrator, is pleased to announce it has recently added Martin Dobbins and Chris Edge to its Luxembourg Board of Directors.
Martin Dobbins joins Gen II Luxembourg’s Board of Directors with over 30 years of financial and technology experience in US, Europe, and Asia/Pacific. Currently Mr. Dobbins is the CEO and Founder of Sage Advisory, s.a.r.l, an advisory firm providing US, Asian and European Asset Managers, Financial Services firms and FinTech companies independent directorship and advisory services. Prior to this, Mr. Dobbins was the former CEO & Country Head for State Street Corporation’s European and Luxembourg Banks where he chaired the Luxembourg executive group. He also led the European Central Bank’s Joint Supervisory Team and Chaired the executive management group and governance committee for several European and Luxembourg banks, including their subsidiaries in alternative assets and transfer agency. Mr. Dobbins is an active member in several Luxembourg government and industry committees. “Gen II’s reputation for excellence within the fund administration industry is stellar and a leader in bringing technology solutions to their clients. I am excited to join the Board of Gen II Luxembourg Services,” says Mr. Dobbins of his recent appointment to the Board.

Chris Edge also joins the Board with more than 30 years of experience in the financial services industry, serving as the former head of major asset service provider banks in Luxembourg, including JPMorgan and HSBC, and more recently leading PwC Luxembourg innovation and transformation solutions for the Asset Management and Asset Service Provider sector. When asked about his recent appointment to the Board, Mr. Edge said, “Gen II is a leader in the private equity fund administration industry and its footprint in Luxembourg reflects its international ambitions, built upon technology and innovation. I am proud to have been invited to join the Board in Luxembourg and look forward to contributing to its future success.”

Commenting on the appointments of Mr. Dobbins and Mr. Edge, Norman Leben, Co-Founder and Managing Principal of Gen II said, “The addition of these two prominent industry professionals to the Gen II Luxembourg Board of Directors represent our commitment to maintaining the highest level of fund administration and financial services expertise in all areas of our business. We welcome their addition and are confident they will provide valuable insights, judgment, and counsel to Gen II in all future endeavors.” Steven Millner, Co-Founder and Managing Principal also said, “As we continue to grow our practice in Europe, we are proud to expand our Gen II Luxembourg Board of Directors with two highly respected and knowledgeable members of the Luxembourg financial services industry.”

Contact:

Jeff Gendel, Principal – Business Development Gen II Fund Services, LLC
212-408-0501
jgendel@gen2fund.com
www.gen2fund.com