AltResources targets mid-sized PE funds
14 November 2011 New York
Image: Shutterstock
AltResources has announced its formal business launch to provide private equity (PE) funds with administration services such as accounting, tax and compliance reporting.
PE executives recognise the growing burden of regulatory compliance. In a recent survey by KPMG of private equity industry executives, 51 percent of those surveyed said complying with new regulatory standards is a "difficult, time-consuming process," up from 43 percent a year earlier, writes AltResources.
The new company has begun introducing its service to selected PE funds and expects to announce its first client engagements by year-end.
"Based on our modeling, we believe we can achieve savings of 20 per cent for an established PE fund with assets of less than $500 million compared to their in-house process, and for fund startups the savings from outsourcing are even greater," said founder and managing director John Wiencek, who was previously head of North American operations for Mourant Fund Services - a fund administrator acquired by State Street in 2010.
Howard Kirschner, director of tax services, said, "With increased regulation on the horizon, many PE fund managers will turn to third-party providers for compliance services. The days of relying on one person and an excel spreadsheet are over."
PE executives recognise the growing burden of regulatory compliance. In a recent survey by KPMG of private equity industry executives, 51 percent of those surveyed said complying with new regulatory standards is a "difficult, time-consuming process," up from 43 percent a year earlier, writes AltResources.
The new company has begun introducing its service to selected PE funds and expects to announce its first client engagements by year-end.
"Based on our modeling, we believe we can achieve savings of 20 per cent for an established PE fund with assets of less than $500 million compared to their in-house process, and for fund startups the savings from outsourcing are even greater," said founder and managing director John Wiencek, who was previously head of North American operations for Mourant Fund Services - a fund administrator acquired by State Street in 2010.
Howard Kirschner, director of tax services, said, "With increased regulation on the horizon, many PE fund managers will turn to third-party providers for compliance services. The days of relying on one person and an excel spreadsheet are over."
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