Insight – PE

What’s driving change for Private Equity reporting?

In today’s marketplace Private Equity reporting is subject to change as never before. Investors demand granular data at their fingertips. New GDPR requirements demand enhanced controls and transparency. To respond and succeed, fund managers need to achieve ever greater fund operation and investor reporting efficiency within a clearly defined technology strategy. GDPR The intention of GDPR, which came into place in May 2018, is to protect the rights of natural persons (EU citizens) in respect of their data. Whilst many funds may

Observations from a blockchain PoC research project in Private Equity Fund Administration

Earlier this year Mainspring undertook a 3-month proof-of-concept (PoC) to get hands-on with our research of blockchain technologies. As a Fund Administrator, Mainspring holds the books of record for a client’s fund, independent of the fund’s investment manager, undertaking the accounting and reporting of the fund’s performance.  In addition, Mainspring provides administration services for operating the fund which are largely event driven and typically follow a defined workflow process, such as: making a new investee company investment; effecting a drawdown of

Private Equity LP Fund with HNW Co-Invest UK feeder

If you are considering creating a UK feeder fund for individuals to co-invest alongside the main fund, this may be a cost effective, simple solution. Mainspring has an award-winning nominee and custody platform which can be branded and structured as a discretionary or fully managed mandate.  Whether the main fund is domiciled in the UK, Jersey, Guernsey, Luxembourg or Cayman this dedicated feeder can be a co-investor for investors from any country into any primary asset. Use this dedicated FCA regulated UK

Setting up a new PE or Venture fund – Part 5: Raising Capital

Now that you have prepared your plan and your materials, and have your permissions, structures and advisers in place, there is nothing to stop you reaching out to investors and hoovering up commitments to Excellent Fund I. You (or someone else in your team) may be an experienced capital raiser, however this is one area where many first time managers look for outside help. The challenge, of course, is that most first time funds are seen as a risky proposition by

Setting up a new PE or Venture fund – Part 4: permission & formalities

Parts 1-3 of this series of articles have looked at the areas where you should have conviction in order to invest the time and other resources required to launch a fund, as well as covering the fundamental cash flow and pertinent business considerations for any want-to-be fund manager. An important feature of investment management that we have not yet touched on, however, is regulation. Private equity and venture capital managers must be regulated in any market in which they plan to

Setting up a new PE or Venture fund – Part 3, your fund as a business

Up until now, this series of articles has focused on some questions that need confident answers before it is prudent to sink the time, cash and other resources required into launching a new fund. This time we will concern ourselves with just one issue: How do I run the business side of being a fund manager? Like any business, your fund management company needs a financial plan.  You must have a clear plan as to how you will cover the costs and

Setting up a new PE or Venture fund – Part 2: creating value

So, let’s fast forward to the first investment from your new fund: how are you going to improve the value of your new portfolio company? Value creation has come under increasing scrutiny since the financial crisis, 10 years ago. Even if leverage is an important component in your investment strategy, using leverage as the primary tool to generate returns is no longer sufficient. Today, successful managers are able to point to strategies and operational improvements that they have successfully used

Setting up a new PE or Venture fund – Part 1: first things first

Launching a private equity fund will typically involve raising a large amount of capital from individuals and institutions, but there are many steps that need to be taken before it is time to reach out formally to potential investors with your proposition. This series of short articles aims to introduce first-time and would-be fund managers to the steps that need to be taken to launch a private equity fund. First, we will look at the tests you must subject your

EIS: increased investor limits for knowledge

Knowledge-intensive companies have received a boost in the Autumn Budget – annual investor limits have increased up to £2 million provided that £1 million is directed into these companies. This is in addition to the existing extended limits for investee businesses that are knowledge-intensive, that include being able to raise a total qualifying investment of £20 million rather than the normal limit of £12 million and the employee workforce being up to 500 rather than 250. In light of these enhancements