Private equity investing hit an all-time high in 2017* and a record proportion of investors report that they plan to increase their allocation to these types of investments over the longer term. Traditionally, private equity funds have been self-administered, but market pressure in recent years has rapidly driven firms toward outsourcing, a trend that experts predict will continue.
Much of this shift is due to investor demand for accurate and timely recordkeeping and reporting, third-party validation of AUM and NAV, and greater portfolio transparency. In fact, institutional investors are now often asking detailed questions about back office functions in addition to investment management strategy in their requests for proposals from private equity managers.
Private equity administration requires significant attention to detail and investment in technology, resources, and processes, which can distract managers from their primary responsibility and competency – investment management and generating returns for their investors. Outsourcing this function may offer managers important operational advantages, resources, and tools that allow them to scale and grow their businesses more efficiently. A third-party administrator also provides private equity firms important expertise to manage growing regulatory pressures and deliver the unique reporting, communications, and capital calls/distribution their funds require.
Gemini understands the complexities and the level of customization involved with private equity structures. We do not believe that private equity funds fit into a box; rather, we understand the need for sophisticated and flexible technology solutions, as private equity funds command their own unique set of services and deliverables. Our fully integrated private equity platform integrates functionality specific to private equity funds, such as the tracking of committed and called capital, distributions to investors, and unique performance fee calculations, with a comprehensive accounting system that includes portfolio accounting, partnership accounting, and investor reporting, making Gemini a complete solution provider. We offer services to support your firm’s finite life cycles, closed-end structures, limited partnership structures, and investments in alternative asset portfolios.
Our dedicated client service division becomes an extension of your own operational teams with personnel that provide services ranging from transaction capture and valuation to financial reporting and investor servicing. Our operational processes and controls are SOC1 certified and have been refined to a level of unsurpassed excellence.
Gemini’s private equity services include: