Private Equity Funds

Private Equity Funds 2018-05-24T16:59:03+00:00

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:

  • Maintenance of official books and records
  • Computation of fees and accruals (including management fee and carried interest)
  • Calculation of preferred return and complex distribution waterfalls
  • Reconciliation of cash
  • Provision of accounting-related reports
  • Maintenance of capital accounts
  • Multi-currency capabilities
  • Financial reporting
  • Distribution of capital calls
  • Maintenance of all investor records
  • Communication with investors and your fund’s third parties
  • Enablement of web reporting for investors
  • Reporting services, including dissemination of newsletters, NAVs, and holding statements
  • Treasury/cash management
  • Preparation of investor due diligence questionnaires
  • Investor identify verification in accordance with OFAC and AML procedures
  • Preparation and issuance of investor capital call and distribution notices
  • Processing of capital activities (commitments, capital calls, distributions, drawdowns, and transfers)
  • Maintenance of capital commitment balances
  • Calculation of capital call per investor amounts
  • Preparation and distribution of capital call letters
  • Recording of capital calls in partnership accounting system
  • Recording and maintenance of capital commitment balances
  • Calculation of capital call and capital distributions per investor amounts
  • Preparation and distribution of capital call and capital distribution letters
  • Recording of capital calls and capital distributions in partnership accounting system
  • A single platform supporting all asset classes
  • 24/7 access to complete accounting, portfolio, risk and investor data
  • Interactive data visualization
  • Customization with drill down capabilities to the lowest levels in near real-time
  • Automated state-of-the-art private equity software with the ability to:
    • Calculate intricate waterfalls with the ability to track special distribution schedules
    • Track capital and allocate profit and loss calculations on a deal by deal and lot by lot basis
    • Keep tabs on actual and prospective transactions, including liquidity gates and ad hoc estimates at the fund or investor level
    • Automate and customize call and distribution letters
    • Support private equity fund of fund reporting

Learn more about Gemini’s technology solutions for private equity funds and hedge funds.

Click here to learn about how Gemini helps private equity funds comply with blue sky laws.

To meet funds’ compliance needs, Gemini, through our sister firm Northern Lights Compliance Services, LLC (NLCS), offers a team of professionals formed specifically to serve as Chief Compliance Officers (CCOs) on an independent consulting basis. Our staff includes attorneys, former regulators, former CPAs/auditors, former CCOs, and operations professionals who are proficient in fund compliance requirements. This diverse experience enables us to evaluate the steady stream of new regulations from many different perspectives, resulting in practical and cost-effective implementation strategies.

Learn more.

Private equity funds have a wide array of documents that need to be filed with regulatory bodies, printed, and mailed to investors. In addition to custom printing, promotional products, and large format printing, Gemini’s team of printing specialists can simplify a seemingly complex process by managing your fund’s financial reporting and marketing documents from their early stages through publication.

Learn more.

A Complete Solution Provider

Gemini’s private equity platform combines functionality specific to private equity funds with a comprehensive accounting system, which allows us to address the complexities of these types of funds and provide the customization their managers and investors demand.