Report examines how GPs can win the trust of LPs during a downturn while positioning for the upturn
WEST ORANGE, NJ (June 25, 2020)—PEF Services, a leading fund administrator for Alternative Investment Managers, today announced the release of a new white paper entitled “Investor Transparency as a Differentiator.” The report considers how General Partners (GPs) can win the trust of their Limited Partners (LPs) during the downturn and position themselves advantageously for the influx of allocations that are predicted to transform private capital in the future. If done right, investor transparency will maintain and possibly enhance the trust between firms and their investors.
Drawing on PEF’s extensive fund administration expertise, this white paper examines the need for investor transparency in capital activity, communications, reporting and issues related to valuations during uncertain times. It covers:
- Critical roles of transparency and communications
- Answering the questions that LPs are most likely to ask during this time
- Sharing capital activity projections
- The importance of adopting industry reporting standards
- Identifying the right valuations and metrics
- Choosing the right investor portal
While this economic downturn is unlikely to dampen the rising popularity of the alternative asset class (in fact, allocations have historically increased during downturns), it is definitely impacting investor confidence. To reassure uneasy investors, GPs should focus on supporting new levels of transparency, responsiveness, and candor.
“The way you communicate with your LPs during uncertain times will shape their perception of the relationship for years to come and have a direct impact on your next fundraise,” said Anne Anquillare, CFA, CEO and President, PEF Services LLC. “Investor communications and reporting are critical capabilities during a downturn, but they also hold the key to success as the private markets benefit from the inevitable upturn.”
About PEF Services LLC
PEF Services is the new standard in providing high-value, high-touch Fund Administration services and technology solutions that elevate operational performance to drive and support sustainable growth. Supported by senior professionals with extensive experience in alternative investments, PEF has a track record of nearly 20 years in delivering cost-effective, best-in-class solutions to Funds and General Partnerships, including Buyout, Venture, Emerging Managers, Real Estate, Debt, Fund of Funds, Co-investment, SPVs and SBICs. Additionally, the firm’s LP Administration Solutions Group focuses solely on meeting the unique administration and data needs of limited partners investing in illiquid alternative assets. PEF’s ViewPoint™ provides clients with a purpose-built portal that delivers greater visibility and real-time access to underlying investment performance data sourced directly from the official books and records of the fund. In partnering with PEF, firms increase operational efficiency, control operating costs, improve focus on core capabilities, and gain access to experts in private capital back office operations. For more information please visit https://www.pefservices.com/.