First impressions speak volumes. The investor onboarding experience is no different.
As the private equity landscape continues to shift and become more competitive, many are finding that working with a third-party fund administrator is the way to go. For those investors who are new to working with private equity fund administration partners, the onboarding process is both the first and the most important step in forging a long-term relationship.
“When it comes to investor onboarding, the key to success in the process is a dedicated onboarding team,” said Michael Richards, SVP of Fund Administration at NES Financial. “The team’s sole focus is to set up every client. It’s not just to address their needs during the onboarding process, but to continue to address and meet their needs over the course of the relationship.”
Investor onboarding is also important because there can be a number of early challenges that arise pertaining to data volume and diversity. During the onboarding process, integrating financial and non-financial data from myriad sources into a new system can be a major undertaking, and it takes the right team — and the right approach — to make the onboarding process as streamlined and stress-free as possible.
Here are five ways that NES Financial alleviates the headaches often associated with investor onboarding:
- Flexibility – NES Financial can either handle 100 percent of investor communications during the onboarding process, from initial receipt of the subscription package through acceptance and investor funding, or, we can handle a portion of the process and allow you to maintain control over key limited partner relationships.
- Tracking and Transparency – NES Financial maintains the investor registry and all relevant documentation in eSTAC, which allows us to generate daily investor status reporting and provide our clients visibility into where every investor is in the onboarding process.
- AML/KYC – Since all investor documentation is maintained in eSTAC, there’s a clear audit trail for our clients’ AML/KYC requirements. In addition, NES Financial runs investors through Thomson Reuters World-Check One for verification purposes and ongoing monitoring.
- OZ Compliance – For compliance with the Opportunity Zone regulations related to the deferral, reduction and elimination of capital gains taxes, accurate tracking and reporting of investor data is critical. NES Financial has a purpose-built Opportunity Zone dashboard in eSTAC to mitigate risk and ensure compliance with the regulations.
- Investor Portal – Upon acceptance into the fund, investors are granted access to the NES Financial Investor Portal. The Portal is integrated with eSTAC and displays capital account data and transactional data while also serving as a communication tool to securely pass documents such as capital call notices and financial statements to investors.
NES Financial provides expertise in fund administration, regulatory requirements, and asset-class specific issues. If you’re interested in learning more about our private equity services as NES Financial, contact us today. To find out more about our Private Equity Fund Administration solution, download our Fund Administration Solution Sheet.