Cendrowski Corporate Advisors back office operation support permits private equity fund managers to concentrate on the fund’s core operations, minimizing administrative costs and ensuring data integrity.
Our operations services represent variable costs to the fund that can quickly increase with demand or decrease during off-peak times and 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.
Our Approach to Back Office Support Services
Transferring responsibility for back office support solutions, like financial reporting, accounting, tax, valuation, and other ancillary operations, to an independent third party assures limited partners that they receive timely and accurate information. Administrative resources at the fund level are freed up to permit managers to focus on scouting, screening, and harvesting deals. Costs to private equity firms are further decreased, as these operations are typically borne by the private equity fund, not the general partners.
Outsourced company’s back office support operations can also:
- Assimilate all necessary information for fund managers, reducing the need to “chase information”
- Increase investor confidence in financial reporting and portfolio company valuation
- 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