Why LPs Are Diving Into Waterfalls
The complexity of distribution waterfalls can often deter Limited Partners (LPs) from engaging in the calculation process, but as Delphine Jones, solutions consultant executive at PEF Services explains, understanding the methods and arming yourself with a bit of knowledge can be a valuable thing. View the Article and Video
Distribution Waterfalls Methods
By Beth Manzi, CPA, Chief Operating Officer, PEF Services, LLC There are two basic methods into which private equity distribution waterfall schedules are classified: European or American. Typically, the European waterfall is preferred by Limited Partners (LPs), while the American waterfall is preferred by General Partners (GPs.). The two methods are typically differentiated by the ways in which they deal…
Distribution Waterfalls 101
A distribution waterfall defines the way the profit of a fund is distributed between the Limited Partners (LPs) and the General Partner (GP.) It also defines the distribution of carried interest to the GP once the threshold return is exceeded. Essentially, the total profit is distributed according to a cascading, tiered structure that gives the waterfall its name. When one…
8 Performance Reporting Technology Foundations That Accelerate Compliance With ILPA & GIPS®
By Anne Anquillare, CFA,Chief Executive Officer & President, PEF Services LLC Newly developed universal reporting standards are promising to take private capital’s most urgent challenge—the lack of transparency—and solve it once and for all. Sound familiar? Will this time be different? And if it is, is my firm ready? And if it isn’t, shouldn’t my firm be ready anyway since eventually…
3 Key Benefits & Features That Investor Portal Technology Offers The Private Capital Industry
By Anne Anquillare, CFA,Chief Executive Officer & President, PEF Services LLC We have all heard it—the greatest challenge for the private capital markets—and the greatest opportunity—centers on providing investors access to real-time information to enable true transparency. Investors and regulators alike are demanding new levels of information access that are convenient with a high degree of visibility, reliability and security. And…
Performance Reporting: A Game Changer For The Illiquid Alternative Asset Industry
By Anne Anquillare, Chief Executive Officer & President, PEF Services LLC Two world trends are converging on our industry – business intelligence (BI)/data driven decision making and the dramatic expansion of investment assets under management. In their Asset & Wealth Management Revolution report, PwC predicts that global assets under management will rise to $145.4 trillion by 2025, doubling the amount from…
Back Office Visibility, Agility and Effectiveness
By Beth Manzi, CPA,Chief Operating Officer, PEF Services, LLC The back office needs to strengthen their systems and processes. Often, when we’re onboarding a client, they’ll hand us a financial statement that’s an Excel file with hard-coded numbers. That’s a recipe for disaster on so many levels. When the numbers are entered manually, the risk of human error is high.…
The Back Office Steps into the Limelight
By Anne Anquillare, Chief Executive Officer & President, PEF Services, LLC Diligent, hardworking, conscientious—these are the words most often associated with the firm’s administrative core also known as “the back office.” A back office capable of discharging its responsibilities effectively and efficiently enables the firm to attract a wider range of capital, support growth, and ensure that its most valuable…
Private Equity Funds: Leverage and Performance Evaluation
Anne Anquillare was featured in the July 16, 2018 CFA Institute blog entitled Private Equity Funds: Leverage and Performance Evaluation by Antonella Puca, CFA, CIPM, CPA As Anne Anquillare, CFA, president and CEO of PEF Services, notes: “It is important to distinguish a subscription line of credit that is used to finance investments over a longer period of time versus…
SBIC Fund Administration: Understanding The Stakes
By Anne Anquillare, Chief Executive Officer & President, PEF Services, LLC Small Business Investment Companies (SBIC) are attractive investment funds, enabling GPs to access government leverage at low rates that enhance returns. But they also come with more complex administrative requirements, and those requirements are changing all the time. Firms involved in the SBIC program must be prepared to keep…