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The Challenges Private Equity Fund Managers Face Today

Fund managers, whether new or 20-year experts, face challenges daily, especially with technology needs evolving. So, what exactly are the challenges Private Equity managers are facing, and how can NES Financial’s technology help?

“Today, in the GP world, we’re going through a sea change,” according to NES Financial’s Senior Vice President of Fund Administration Michael Richards. “The demands on GPs from limited partners are changing. They’re requiring more and more by way of transparency, reporting, and actionable intelligence. At the same time, you’ve got greater compliance requirements being pushed down. You can break down the needs of the fund into multiple categories:  Accessing and retaining capital, followed by operational infrastructure and risk mitigation.”

NES Financial’s solution helps fund managers face these challenges and meet their needs.

Accessing and Retaining Capital

Fund managers who use the NES Financial Fund Administration Solution find that it helps attract and retain capital.

Our Investor Portal, which is built into our proprietary technology platform, offers investors 24/7 access to fund status, capital account data, document sharing and personal alerts, thereby decreasing the number of customized reporting requests that fund managers receive. The Investor Portal allows custodians and investment managers to track performance and analytics in real time.

According to Clairmont Capital Group CEO Christian Wenger, the sophistication of the NES Financial platform stood out to him and his PE team. “The online portal that they provide to our investors is a key differentiator, offering 24/7 access to fund status, capital account financial data, document sharing and personal alerts,” said Clairmont’s Wenger. “At the end of the day, NES Financial’s services make our job easier — improving efficiency and allowing us to focus on prudent investing.”

Operational Infrastructure

NES Financial developed an agile, technology-focused approach to private equity management that  alleviates other industry pain points, including compliance and data security.

NES Financial’s purpose-built technology solution for private equity resonates with our clients who see value in being able to simultaneously manage multiple databases and feeds. Our clients can calculate valuations, make data-driven decisions, employ augmented and artificial intelligence applications, but would rather not develop those technical competencies in house.

Ultimately, what all fund managers need is the confidence and flexibility to run their businesses the way they see fit. The blend of technology and client services NES Financial offers as a third-party fund administrator provides them with the strong foundation they need to maximize their strategic advantage at an especially complex time in private equity management.

“The sophistication of their technology and infrastructure is superior to other platforms that we evaluated,” said FrontFour Real Ventures co-founder David Lorber.

Mitigate Risk

As the administrator of over 300 funds of all sizes, we also administer over $20B annually for our private equity, commercial real estate, and Fortune 1000 clientele. Our platform has built-in compliance, data security, automated reporting and enhanced transparency to reduce risk. By minimizing the risk for error and increasing efficiency, our platform allows managers and clients to protect their margins and cut costs through automation and scale.

“Their platform’s compliance tracking, data security, and automated reporting have significantly relieved our in-house workload,” said Tom Powell, CEO at Resolute Partners. “NES Financial’s technology-driven approach to fund administration appealed to us right away, and we think it’s a great fit for our investors as well.”

The NES Financial Fund Administration solution helps fund managers face these challenges today.  Our solutions utilize a uniquely scalable technology platform provide greater efficiency, reduced operational risk and higher investor confidence, all which allow fund managers to do what they do best: raising capital and making prudent investments.

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