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Private equity managers seek additional support from service providers

In light of an ever-shifting regulatory environment and challenges around talent and technology, private equity firms are leaning more heavily on their service providers for support which will allow them to focus on their core capabilities.

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In light of an ever-shifting regulatory environment and challenges around talent and technology, private equity firms are leaning more heavily on their service providers for support which will allow them to focus on their core capabilities.

“Managers are having to chase deals in a highly competitive market, all while making sense of new and proposed regulations,” says George Teixeira, Tax Partner and Tax Leader of the Financial Services and Private Equity Groups at Anchin. 

The continuing waves of regulation can be considered a critical challenge PE managers have to contend with. The change in this regard is positive, in that it means greater levels of monitoring are being implemented to weed out any bad actors. However, it also leaves the good actors with significantly more work. 

By seeking further support from their service providers, managers can seek to alleviate the pressure as their attorneys and accountants can help them navigate their way through the regulations and pinpoint what affects them now and what could impact them in the long term.

This is also helping to highlight Anchin’s objective of being more than an accountancy firm to clients. Teixeira explains: “We’re not just here to prepare tax returns and audit financial statements. We’re here to serve as a business adviser for our clients; to help them navigate through a lot of these rules. Not all of them fit neatly into a category like tax or accounting – many of the changes are industry-wide. Therefore, it’s critical for us to know the industry to be able to better assist our existing and future clients.”

Because the macro-economic environment became more challenging over the past year, clients have more questions and more issues they want to discuss. Teixeira reports this has made Anchin’s client relationships a lot deeper: “We want to be the call they make before going into a deal, before making an investment.”

One way the firm is further supporting development in the industry is through its emerging manager platform. “Our growth for the last four or five years has been driven by the private equity and venture capital space. Through our platform, we work with start-up managers and firms to help get them from point A to point B. This helps them avoid spending time on areas or issues they are not familiar with, especially at the onset of their journey. We offer more hand-holding and more involvement early on in their business cycle,” Teixeira says.

Looking ahead at further development, technology is bound to play a significant role in the future of accountancy services. “This is going to change the way accountants go to market and serve clients in the future,” Teixeira notes. “It’s already changing now with technology helping to prepare tax returns and carry out certain parts of an audit. And this is only the tip of the iceberg.”

Anchin has been working diligently on this, creating a technology group to understand what elements of its service can be mechanized in order to improve efficiency. Teixeira says, “We have several of these projects already ongoing – looking to see whether it’s something we can handle internally or consider outsourcing. Through these efforts, we enhance our efficiency and improve the client experience.”

For more information on how Anchin may be able to help your firm grow, please reach out to George Teixeira or visit our website


George Teixeira, CPA, MS, Tax Partner, Anchin – George is the Tax Leader of the Firm’s Financial Services Practice and Leader of the Firm’s Private Equity Group, as well as a member of Anchin Private Client. He is experienced in servicing the alternative investment, private equity and financial services industries and His expertise includes tax planning for high-net worth individuals, investment partnerships, investment advisors, broker-dealers, venture capital companies, hedge funds (and their investors), investment partnership management companies and general partner entities. 
 

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