“From day one when they facilitated our launch and disseminated our first capital call, PEF has delivered on all its promises.”
Jeff Gerson, Partner and Chief Compliance Officer, Granite Bridge Partners

Client Background

Granite Bridge Partners LLC (“Granite Bridge” or the “Company”) is a middle-market private equity firm that seeks to partner with and invest in management teams and their companies. Granite Bridge purchases control positions in companies with strong continuing management, high upside, discernible value, and acquisition-led and organic growth drivers. The firm differentiates with patient capital, certainty to close, and its team’s extensive experience in lower middle-market private equity.

Situation

Granite Bridge professionals spun out of a larger asset manager that had formerly provided their fund administration function. The new firm lacked the resources to undertake fund administration internally and needed a partner that would allow them to focus on what they do best: source investments and generate value at their portfolio companies. 

Being able to take the administration function off their hands, however, was “table stakes” for every partner they considered: they needed a partner capable of delivering the highest levels of service and compliance.

The PEF Services Solution

Granite Bridge undertook a substantive vendor selection process and ultimately chose PEF for the following reasons.

Strategy focus. PEF’s focus on private equity and debt funds, as opposed to hedge funds or other private institutional vehicles, gave Granite Bridge the assurance that their fund administrator would understand their business and what was important to them.

New fund experience. Granite Bridge spoke to firms that had launched their first institutional vehicles with PEF, and each spoke highly of the professional care PEF took to guide them through a complex and daunting process, with PEF’s expertise around compliance and AML/KYC screens being particularly valuable.

Supporting technology. Granite Bridge appreciated that PEF had invested in front-end technology that would give the firm and their investors drill-down access to source data. In their selection process, Granite Bridge found this level of user interface to be unique among similarly sized and priced administrators.

Enhanced compliance. As an SEC Registered Investment Advisor, finding an administrator that could support that compliance regime was fundamentally important to Granite Bridge.

Results

PEF Services helped the firm set up its accounting program from scratch, and on July 27th, 2018, Granite Bridge Partners officially launched. Post-launch, the firm’s fund accounting and reporting has run flawlessly and their first end-of-year reporting process went off without a hitch.

Granite Bridge Partners are particularly pleased with PEF’s portal technology, which has streamlined investor communications. If an investor asks about the derivation of a particular number on a statement, the firm would typically have to reiterate the question to the administrator and then relay the answer to the investor. PEF’s portal technology allows Granite Bridge to see where the numbers come from so that they can more efficiently resolve inquiries and generate custom reports when needed.

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