PE industry shift highlights benefits of scale
SS&C GlobeOp: Best Fund Administrator >USD30 billion AUM – Partnering with clients and having an open dialogue with industry participants gives large, independent, administration and technology companies, such as SS&C, a strategic advantage.
The interest in SS&C private equity services and capabilities from private equity firms, alternatives managers, asset management and wealth management firms has increased significantly over the last several years. As these organisations have grown and industry requirements have changed, their systems may have become outdated or no longer support the current needs and goals of the organisation. As a result, these firms are revaluating their internal infrastructure and operating models.
“Sophisticated private credit funds continue to be an area of significant growth. As this segment continues to grow and attract investment from institutional investors, it will require a more disciplined, transparent and independent service model and an integrated technology platform to support private credit products seamlessly,” Joe Patellaro (pictured), Managing Director and Global Head of Private Equity Services says.
Patellaro elaborates: “Private equity organisations of all strategies are reaching out to us to explore ways to improve their operational infrastructure. SS&C is one of a few firms with the size, scale and array of capabilities to offer an insightful dialogue with firms. For example, a private equity firm’s initial request for information about SS&C Private Equity Services may focus on a specific area, but the discussions tend to become broader around such areas as data management, reporting platforms, transparency and servicing partnerships.”
SS&C can provide private equity general partners and limited partners a wide range of services and technology solutions that no other single organisation can provide. In addition to the company’s leadership position in private equity administration, SS&C is a leading servicer for mutual funds and hedge fund managers. Further, through SS&C Intralinks, the company provides portals and data room solutions to support the private equity industry with fundraising, investor reporting and M&A activities.
Patellaro muses: “This gives us unique expertise and capabilities for clients as asset classes converge, businesses expand, and private equity organisations look for provider relationships that can provide an array of solutions.”
Further consolidation can be expected in the private equity administration space in 2020 and beyond, as the industry continues to mature. This phenomenon is bound to challenge smaller providers and technology firms to provide holistic solutions. Due to SS&C’s current size, scale and experience, and commitment, the company is well-positioned to succeed.
“We are a long-term industry participant and have expertise supporting the private equity paradigm shift from self-administration to outsourced administration. As a result, we can partner with clients to reduce clients’ administrative and accounting burdens while adding value and quality of service delivered to end investors,” Patellaro notes.
According to Patellaro, 2020 is expected to be a year of continued growth. The firm has experienced a historically high level of interest in SS&C capabilities from mid-size private equity firms to the largest private equity and asset managers in the industry. To support this segment of the industry, it will continue to deliver leading services and technology solutions to meet managers’ needs efficiently.
SVP, Managing Director, Global Head of Private Equity Services, SS&C
Joe Patellaro is responsible for global strategy and evolution of the Private Equity Services business, and interacts with many internal and external constituents worldwide in staying current on industry, technical, and regulatory matters. Prior to joining SS&C Joe spent over 15 years at Arthur Andersen.