PE Tech Report


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PE managers focus on achieving alpha

CohnReznick: Best Fund Accounting Firm – Capital markets participants are more likely to invest wisely, create value, and achieve alpha when they have access to critical market intelligence and technical expertise. Through its Financial Sponsors & Financial Services practice, CohnReznick provides a range of advisory, assurance, and tax services that help its capital markets clients create value by optimising performance and successfully managing risk.

Exploring issues – discovering opportunities

CohnReznick is assisting private equity and venture capital firms, family offices, hedge funds, and others investment firms as they navigate rapidly changing tax laws and compliance mandates. Additionally, the firm is helping its clients find opportunities brought about by tax reform, technology changes, and the emergence of new industries. Some of these include:

• Opportunity zones: The Tax Cut and Jobs Act of 2017 (TCJA) created this dynamic community development program. With trillions of dollars of unrealised capital gains across the US, the program provides a tax deferral for investing such gains into government designated opportunity zones. The program offers a low-risk investment profile while bolstering low-income communities within these Opportunity Zones. 

• Cannabis: The burgeoning cannabis industry offers significant growth opportunities to investors willing to commit to developing a sound strategy, efficient operations, and employing rigorous compliance processes. 

• Private debt: This emerging form of capital is seeing sustained growth and increased fundraising. 

• Global digital transformation: Unprecedented M&A opportunities and risks – have surfaced as digital technology continues to drive international businesses. Cyber-risks and privacy concerns have never been greater. 

• Continued impact of tax reform: After nearly two years, investors are still grappling with the myriad new tax rules brought on by the TCJA and other legislation. These weigh heavily on deal-making decisions and business models – from the positive effect of lower corporate tax rates to the Supreme Court’s South Dakota v. Wayfair decision that changed the rules of the game regarding sales tax nexus. 

Growth to support client needs

CohnReznick has seen its Financial Sponsors & Financial Services Practice grow revenue by 30 per cent with more than 50 fund clients brought in over the past year. Growth is being driven by the middle market private equity, hedge fund, and alternative investment fund spaces. The recent addition of new partners in New York, Los Angeles and Chicago underscores the firm’s commitment to building a best-in-class, forward-thinking team to meet the needs of its clients.

Christopher Aroh, Financial Sponsors Industry Leader, underscores the firm’s commitment to its growing clientele: “We collaborate with our clients to ensure we fully understand their business issues so we can offer the most practical solutions and suggestions. We draw upon our real-world experience to anticipate their concerns and share insights.”

One of the hallmarks of CohnReznick’s service delivery model is to provide tailored solutions based on in-depth knowledge of the unique requirements, opportunities, and challenges for each individual client.

Aroh adds: “CohnReznick strives to be a true business advisor that offers more than just compliance services. Active and involved partners and managers are available, respond to questions quickly, and can resolve issues without delays in decision making. By sharing industry-specific insights with our clients, they can plan for changes in market conditions, and the regulatory environment.”

Transforming their game

CohnReznick has shown that success comes to those willing to disrupt the status quo, that is, leaders committed to accelerating innovation and reshaping market dynamics. Aroh says, “The firm is defying convention and pushing the limits of technology as applied to the accounting world. We have committed to utilising robust technologies during all our audit, tax, and consulting processes. He adds, “The future of accounting rests on technological innovation and CohnReznick is determined to be on the forefront of business innovation and privy to the opportunities fresh technology affords.” 

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