Have questions? Give us a call: 866-717-1607

Back and Middle
Office Operations

Utilizing our back-office and middle-office operations permits private equity fund managers to concentrate on the fund’s core operations, minimize administrative costs, and ensure data integrity. Our services represent variable costs to the fund that can easily increase with demand or decrease during off-peak times.

Back and middle office operations we perform include:

  • Financial Reporting – Fund and portfolio company financial reporting for limited partners and fund managers, monitoring of portfolio company performance
  • General Accounting – Bookkeeping functions, posting journal entries, account reconciliations, preparation of financial statements, management of operating cash
  • Capital Accounting – tracking cash intake, basis in entities, maintenance of investor capital accounts, calculation of distributions
  • Tax Services – preparation of tax returns, tax consulting for portfolio companies and the fund, tax representation
  • Business Valuation – ASC 820 (formerly FAS 157) compliant mark-to-market portfolio company valuations for fund return calculations
  • Preparation of Investor Communications – fund return calculations, investment reports, capital call notices
  • Principal Tax Planning – Understand principals’ tax liabilities and goals, develop a plan to minimize tax liabilities, enhance after-tax return on investment

Transferring responsibility for these activities to an independent third party reassures limited partners that they are receiving timely and accurate information. Administrative resources at the fund level are freed up, permitting managers to focus on scouting, screening, and harvesting deals. Costs to the PE firm are further decreased as these operations are typically borne by the PE fund, not the general partners.

Our back and middle office operations:

  • Permit fund managers to focus on core operations
  • Assimilate all necessary information for fund managers, reducing the need to “chase information”
  • Increase investor confidence in financial reporting and portfolio company valuation
  • Can easily increase or decrease with demand throughout the fund’s life
  • Are performed by licensed industry specialists
  • Facilitate third-party control on movement of funds