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
Who Should You Hire First? A Strategic Approach to Scaling a Family Office
One of the most important decisions in scaling a family office or growing organization is often underestimated: Who should you hire first? Many leaders default to hiring for immediate needs — filling operational gaps, addressing urgent issues, or reacting to growth pressures. While this approach may provide short-term relief, it frequently introduces structural inefficiencies […]
Don’t Hire for Today’s Problems: How the Right First Hire Shapes a Family Office
As family offices grow, hiring decisions become increasingly important — and increasingly strategic. One of the most common mistakes is hiring to solve immediate problems rather than planning for long-term scale. At first glance, this approach seems practical. Operational gaps need to be filled. Issues need to be addressed. But hiring reactively can create […]
Why 90% of Family Wealth Disappears by the Third Generation
Why 90% of Family Wealth Disappears by the Third Generation There is a statistic frequently cited in wealth management: nearly 90% of family wealth is lost by the third generation. The assumption is often that poor investment decisions are to blame. The issue is rarely financial performance. More often, it is a failure of preparation. […]