Luxembourg-based traditional and alternative fund services provider European Fund Administration has established EFA Private Equity, a new business unit for the administration of private e
Luxembourg-based traditional and alternative fund services provider European Fund Administration has established EFA Private Equity, a new business unit for the administration of private equity and real estate funds. A dedicated team headed by Pascal Leclerc will provide a suite of services to a wide range of private equity and real estate structures through a customised software solution.
EFA says the launch of the new unit was prompted by increasing demand for high-quality, specialised private equity fund administration services. Investor desire for portfolio diversification and non-index correlated returns means investment in private equity has grown rapidly in the last decade, with EUR112.3 billion of funds raised in 2006 alone, triggering a requirement for suitable portfolio accounting and consolidation.
The firm has provided services to private equity funds since its establishment in 1996, administering venture capital, mezzanine, buyout, infrastructure, microfinance, opportunistic real estate and other vehicles. It currently administers 29 such funds on behalf of private banks, boutique investment houses and the private equity arms of mainstream investment companies.
Last year EFA carried out an extensive study of best-in-class private equity administrative practices with the aim of further strengthening its service offering. The analysis highlighted the specificities of private equity administration: pricing a wide variety of unlisted securities or those from newly established markets, non-standard register and portfolio transactions, and the particularities of each portfolio valuation. To manage these requirements, EFA decided to establish a dedicated business line.
EFA Private Equity will use an experienced stand-alone accounting and investor servicing team to provide end-to-end services for its private equity and real estate clients, the company says. Operating via an dedicated software solution, the unit’s systems will be installed in a segregated environment.
EFA Private Equity will provide a wide range of administrative services for private equity and real estate funds, including domiciliation, fund formation and liquidation, transaction and legal services, investor reporting, accounting services, tax reporting services and support services. The new unit will also administer real estate funds, taking advantage of comparable service and system requirements for the two types of fund.
‘The launch of EFA Private Equity is a logical progression of EFA’s established strategy as a specialist fund administrator,’ says chief executive Thomas Seale. ‘Opening a business line solely dedicated to the private equity asset class will facilitate the extension of EFA’s brand further into the zone of non-traditional fund servicing.’
Adds Leclerc: ‘Increasing complexity in both fund structures and portfolio transactions demands a high degree of technical knowledge and a close business relationship with private equity firms. With these requirements, better service is provided by dedicated organisations such as EFA Private Equity, which relies on a highly experienced multifunctional team.’
