PEF Services, Pepper Hamilton and Withum Review Industry-Wide Fees and Expenses Practices
PEF Services LLC, in conjunction with the law firm of Pepper Hamilton LLP, and the accounting firm of WithumSmith+Brown, is pleased to announce the release of a second benchmark survey on Private Capital fees and expenses. The survey was conducted by Private Funds Management (pfm) magazine, the leading publication of private capital fund operations, and the results were released in the October 2016 issue. The survey examined fee and expense practices among 99 U.S. fund managers.
The survey – “Fees and Expenses 2016 – A PFM Benchmarking Survey” – compares and reviews practices among the fund managers, creating a benchmark for other firms to review and modify their procedures if they find they are not consistent with standard practice.
“Our clients have voiced that there is a lack of guidance for CFOs when it comes to charging fees and allocating expenses,” said Anne Anquillare, co-founder, and CEO of PEF Services. “Our goal with the survey was twofold: to help educate fund managers, and to clarify the differences between large and small firms for regulators.”
For example, some of the questions address new regulatory requirements, and the responses indicated that generally, firms lack a standard approach to how they allocate expenses. Anquillare says having a proactive expense allocation policy that is robust, tailored and consistent can help keep fund managers ahead of the game.
Amidst the often unclear and confusing private funds environment, the survey aims to provide clarity in an area that lacks much formal guidance. It highlights nuances faced by fund managers that often fall outside the broader, high-level guidance. It examines transparency, compliance and general understanding of standard procedures across a variety of areas, including acquisitions, industry events, co-investments and technology, as well as legal and administrative services.
If you are interested in seeing the full results of the survey, please click here
About PEF Services
PEF Services provides high quality, high touch Fund Administration Solutions supported by senior professionals with extensive experience in alternative investments. PEF has a 15-year track record of delivering cost-effective solutions to Funds and General Partnerships, including Buyout, Venture, Real Estate, Special Purpose Vehicles, Mezzanine, Credit, SBIC, and Fund of Funds. The firm’s LP Administration Solutions Group (LPAS) focuses solely on meeting the unique administration and data needs of limited partners investing in illiquid alternative assets. In partnering with PEF, firms increase operational efficiency, reduce and control operating costs, improve focus on core capabilities, and gain access to experts in private capital back office operations. For more information, please visit test.pefservices.com.