Key Results
close times
of delivering reports
reporting
personnel costs
The Challenge
Escalating costs, inefficiencies, and a lack of specialized expertise threatened to undermine the company’s performance and competitive edge. They needed a solution to streamline their financial processes while maintaining quality and working within its existing infrastructure.
Client Profile
A prestigious private equity and asset management firm overseeing an $8 billion portfolio that faced significant challenges within its accounting department.
The Solution
We proposed a comprehensive managed services solution to address the firm’s unique challenges. This innovative approach allowed them to access specialized skills and experience on an as-needed basis, providing flexibility, cost-efficiency, and scalability.
Our Approach
Our team deployed a diverse group of experts who worked seamlessly with the client’s existing operations. This collaboration provided them with.
1. Financial Operations Management
- Real-time AP and AR accounting: Ensuring timely and accurate processing of all financial transactions, improving cash flow management.
- Unrealized gain/loss accounting: Maintaining precise records to reflect the true financial position of the firm's investments.
- Management fee calculation: Accurately computing fees to ensure proper revenue recognition and compliance with investor agreements.
- Investor capital call/distribution processing: Efficiently managing investor communications and financial transactions, enhancing investor relations.
2. Reconciliation and Reporting
- Comprehensive account reconciliation: Ensuring all accounts, including over 150 bank accounts and 140 funds were accurately reconciled to maintain financial integrity.
- Partner capital statement preparation: Providing detailed and accurate quarterly capital statements to partners, improving transparency.
- PCAP and Schedule of Investments: Maintaining comprehensive records of investments and partner capital accounts for regulatory compliance and investor reporting.
- Distribution waterfall preparation: Accurately preparing distribution waterfalls to ensure proper allocation of returns among investors.
- Financial reporting: Delivering timely and accurate monthly, quarterly, and yearly financial reports, NAV workbooks, and statements to support decision making and meet regulatory requirements.
3. Strategic Oversight
- Fractional controller services: Offering expert financial oversight and strategic guidance on an as-needed basis, providing high-level expertise without the cost of a full-time executive.
- Financial analysis and decision support Providing in-depth analysis to support strategic decision-making and identify areas for improvement.
The team we assembled
Fractional Controller
(15+ years’ experience):
- Expert financial oversight and strategic guidance
- Led initiatives resulting in a 30% reduction in personnel costs
- Improved overall financial integrity and reporting processes
Senior Accountant
(12+ years’ experience):
- Managed real-time AP and AR accounting
- Ensured timely and accurate processing of financial transactions
- Contributed to a 35-40% decrease in period close times
Financial Analyst
(10+ years’ experience):
- Enhanced the accuracy of financial reports to 99%
- Prepared monthly, quarterly, and yearly financial statements and NAV workbooks
- Provided in-depth analysis to support decision-making and identify growth opportunities
Reconciliation Specialist
(8+ years’ experience):
- Efficiently reconciled over 150 bank accounts and 140 funds
- Maintained financial integrity and supported accurate financial reporting
- Implemented automated reconciliation processes to improve efficiency
Investor Relations Manager
(10+ years’ experience):
- Streamlined the processing of capital call/distribution notices for investors
- Ensured efficient management of investor communications and financial transactions
- Improved investor satisfaction through timely and accurate reporting
Management Fee Specialist
(7+ years’ experience):
- Accurately calculated management fees across various fund structures
- Ensured proper revenue recognition and compliance with investor agreements
- Contributed to the overall financial health of the company by optimizing fee structures
Results and Impact
The implementation of the managed services solution led to significant improvements in the company’s accounting operations, including:
Faster Period Closings
By streamlining processes and leveraging real-time accounting, the company reduced period close times by 35-40%, enhancing its ability to make timely decisions and respond to market changes.
Improved Reporting Efficiency
Report generation efficiency improved with a 25% reduction in delivery times, allowing stakeholders to receive critical financial information more quickly and make informed decisions.
Enhanced Accuracy
The accuracy of financial reports increased to 99%, reducing errors and enhancing the reliability of financial data. This improvement led to better decision making and increased investor confidence.
Cost Optimization
Through the managed services model, the company reduced its personnel costs by 30% while gaining access to a broader range of expertise. This cost reduction allowed for reinvestment in other areas of the business.
Scalability and Flexibility
The managed services model allowed the firm to scale its accounting capabilities up or down based on demand, providing greater flexibility in managing workload fluctuations and seasonal peaks.
Access to Specialized Expertise
The firm benefited from a diverse team of experts without the need for full-time hires, accessing specialized skills as needed. This approach allowed the firm to stay current with industry best practices and regulatory changes.
Improved Focus on Core Business
With the accounting function optimized, the firm’s leadership could focus more on strategic initiatives and core business activities, driving growth and improving overall performance.
Enhanced Investor Relations
The improved accuracy and timeliness of reporting led to increased investor satisfaction and trust, potentially attracting new investors and retaining existing ones.
Regulatory Compliance
The managed services team ensured that all financial processes and reports met regulatory requirements, reducing compliance risks and potential penalties.
Technology Integration
The managed services team implemented and optimized financial technology solutions, improving efficiency and data accuracy without requiring significant internal IT resources.
The managed services solution not only resulted in cost savings but also transformed the accounting department into a more efficient, effective, and strategic unit. The enhanced accuracy and timeliness of financial reporting provided the company with better insights and control over its financial operations. By optimizing its financial management through this innovative approach, the firm positioned itself for sustained growth and improved performance in the competitive asset management landscape.