When Augentius was established in 2002 it was the only business in London providing outsourced fund administration to the UK general partner community. PE managers had no choice other than to do their own fund administration and build their own in-house back-office teams.
Much has changed since that time. Augentius has grown, on average 20 per cent year-on-year, and has expanded its business across the world, to become one of the largest global private equity and real estate administrators. Regulatory developments have certainly played an important role in its growth, with AIFMD in particular prompting PE groups to seek out trusted partners to work with.
And with uncertainty over the outcome of Brexit, UK managers are having to weigh up their options.
“There are a wide range of messages emanating from the Brexit discussions at the present time and there is considerable uncertainty as to the way forward,” says Ian Kelly (pictured), Group Chief Executive. “UK fund structures have proven to be successful in the past but we will have to see what emerges from the Brexit discussions.”
Kelly describes the culture at Augentius as a “go ahead” and “can do” business. Servicing its clients is the highest priority, “which we all strive hard to deliver on time, all the time. But along the way we have some fun. Each of our offices have their own social committees, nights out are planned and activities held to support our chosen charities,” he says.
For those who are running European regulated structures (UK or otherwise), they’ve need to adjust to the demands of regulation, not least of which is understanding the role of the depositary; something PE groups running offshore funds have never had to consider.
Kelly believes that the key to a high quality administration and depositary service is experienced staff supported by proven processes and technology. “Over 70 per cent of our staff are either qualified or part qualified and the whole business is run on some of the best technology and software within the industry.”
Continuing with the depositary point, Kelly says that the role it plays is still relatively new – especially for those who are now going over the AIFM depositary threshold or those foreign managers now seeking investors from Germany and Denmark (where a Depositary is required) for the first time.
“The key to an effective relationship with the Depositary is selecting one that doesn’t interfere with the day-to-day activities of the business but has the capability to effectively monitor the business ‘in the background’,” suggests Kelly.
One of the advantages to PE groups when appointing someone like Augentius, who is able to act as both the Fund Administrator and Depositary to the fund is that it lowers the risk profile.
Moreover, the Depositary is able to obtain information and data from the administration function to carry out its oversight functions.
“In many instances, Augentius provides Depositary services to none-EU managers who have investors in Germany and Denmark and even though we may not be acting as administrator we are more than able to carry out the role without interfering with the day to day activities of the manager.
“Increasingly Augentius is also being asked to provide regulatory reporting services – especially for AIFMD reporting to clients,” confirms Kelly.
On winning this year’s award, he comments: “We are delighted that the efforts of the Augentius team have been recognised in this award. Everyone works very hard to deliver the services our clients expect and we are constantly looking to expand and improve our services to meet the ever-changing needs of our industry.”
