Because PEF has so much experience, they often have insights that go beyond their role as third-party administrator.”
-Kevin Sheehan, Managing General Partner, Multiplier Capital

Client Background

Multiplier Capital invests in professionally backed growth companies with revenues of between $10 million and $100 million. Over the past 10 years, the partners have invested almost $1 billion in debt capital in over 100 transactions. They invest nationally in virtually any growth sector, with a particular focus on digital media, e-commerce/consumer web applications, and cyber-security, applying their combined 90 years of experience in transactions to tailor value-added debt solutions for their company partners.

Situation

Multiplier Capital started fundraising in 2011 and began investing its $227 million fund of recyclable capital in October 2012. With a 15-year history as an investment team and a well-earned reputation for delivering on expectations, the firm was very confident in their strategy, but they wanted to ensure that their strategy was given the right administrative support.

In the early stages of fundraising, PEF acted as an advisor to Multiplier Capital, helping them to anticipate and address a range of regulatory and licensing requirements. When the fund was ready to close, the firm contracted PEF to handle their fund administration.

“We were impressed with their expertise,” said Kevin Sheehan, Managing General Partner at Multiplier Capital. “We got very comfortable with the leadership there, so while we looked at other options as a matter of diligence, we felt PEF was the right choice.”

Solution

Together, Multiplier Capital and PEF created a workflow that supported the firm’s processes and requirements. Coordinating the process with the fund closing added an extra layer of complexity and time sensitivity to the process, but Sheehan said that PEF’s professionalism made the process seamless.

“We were very pleased with the fact that PEF was responsive and always got back to us as needed,” said Sheehan. “As we went through the licensing process and the fundraising process, we were in constant communication with PEF, so we had a good feel for what had been done and what needed to be done.”

PEF guided the firm through the process and made sure that Multiplier Capital had tools and processes in place for communicating effectively with investors, including the use of PEF’s Investor Library, where call notices, distribution notices, and financial and capital account statements are available to investors 24/7.

Results

Thanks to PEF’s fund administration services, Multiplier Capital is able to meet the expectations of their investors and auditors.“What we’ve always appreciated is that PEF consistently meets reporting deadlines for us,” said Sheehan. “We know that all of theirclients are reporting on the same schedule, yet PEF has never disappointed us in terms of ensuring we make our filings in a prompt and professional manner.”

PEF has also enabled Multiplier Capital to maintain excellent service levels and trusted relationships with their investors. In addition to the convenience of the Investor Library, Sheehan said, “Our investors have said that it gives them great assurance to know that that there’s someone like PEF who’s working with us to take care of things. A respected third-party administrator is a value add from their standpoint.”

Gaining access to senior-level expertise has also given Multiplier Capital a distinct advantage.

“Because PEF has so much experience, they often have insights that go beyond their role as third-party administrator,” explained Sheehan. “We’ll bounce ideas off them and say, ‘Hey, look, we have this issue. What are the different ways we might approach this?’ And they’re very helpful in working through it with us.”

The partnership will continue as Multiplier Capital successfully wraps up the investment period for its first fund and starts on a second fund with a five-year investment period that takes them through to 2022.

“PEF has been a trusted advisor of ours, and we’re delighted to have worked with them and to continue working with them on fund two.” said Sheehan.

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