Leading fund administrator highlights fee allocation approaches to Chicago Women in Finance

WEST ORANGE, NJ (February 14, 2017)—PEF Services, a leading fund administrator for Alternative Investment Managers, provided insights on the handling of fee and expense allocations to an audience of women executives in Private Equity Finance and Fund Operations in Chicago on February 8, 2017.

PEF Services presented results and commentary on the recent 2016 PFM Fees and Expenses Benchmarking Survey which examined fee and expense practices among U.S. fund managers.  The survey, directed to alternative fund managers, addressed questions regarding various fees and expenses, comparing and reviewing practices across the industry.

The PEF Services event featured an interactive presentation and discussion led by Anne Anquillare, PEF Services CEO and President.  Anne was joined by speakers Karina Stahl, Managing Director, Finance & Operations for Monroe Capital, and Hank Boggio, Chief Revenue Officer for PEF Services.

The discussion centered around how financial executives approach fee and expense allocations, including the transparency, compliance and the general understanding of standard procedures, the use of ILPA best practice reporting templates, LP event budgets, technology costs and problem areas such as management fee offsets, fees charged to portfolio companies, and allocations across funds.

“The expense allocation policy is more principles-based than rules-based,” said Anne Anquillare, Chief Executive Officer and President of PEF Services. ”Once implemented, it can streamline how a company handles new expenses, helps avoid unnecessary legal costs and internal distractions so CFOs can efficiently balance their primary fiduciary responsibility to their investors.”  To learn more, visit test.pefservices.com/the-proactive-approach.

Consistent with the PFM Benchmarking survey results, this group confirmed the challenges inherent in the support for standardization of ILPA best practice templates.  The ILPA templates are considered laborious with few tangible benefits, so alternatives are adopted.

“General Partners are receiving an increased number of custom templates from their Limited Partners, with the majority asking for very similar information,” commented Karina Stahl, Managing Director, Finance & Operations, Monroe Capital. “More and more, GPs are choosing to respond with substance, timeliness and efficiency of reporting over form.”

Regarding fee and expense allocations which are not addressed in the PPM, LPA or policy documents, it was noted that decisions made by the management team or CFO alone creates a lot of risk for second guessing and non‐disclosure issues.

“The push towards standardization of fee disclosures with the release of the latest guidelines serves to elevate the level of trust between GPs and LPs,” remarked Hank Boggio, Chief Revenue Officer for PEF Services.  “The appropriate guidance here is to collaborate with your investors to ensure that you are providing the information they need in a format they can use.”

About PEF Services LLC
PEF Services provides high-value, 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.

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Laura Hills
VP, Marketing
PEF Services
212.203.4685 x180