Broadscope provides a superior fund administration alternative for the Private Equity industry.

Transcription

1 Broadscope provides a superior fund administration alternative for the Private Equity industry. About Broadscope Fund Administrators Broadscope employs a high touch, boutique model to provide full-service administration to private equity fund managers. Broadscope s premier service is based on direct access to experienced senior professionals, robust quality controls and innovative technology. The Company s founders and senior team have significant industry-specific experience and knowledge of a broad range of private equity fund types and structures, which forms the basis of Broadscope s personalized service offering. The Broadscope Team The Broadscope team is led by Frank Palmeri, Kevin O Neill, Rick Palmeri and Robert Aufenanger. This team includes the founder and key executives of Palmeri Fund Administrators, the first independent fund administration firm focused exclusively on the Private Equity industry, which was founded in 1991 and acquired in Broadscope s senior team is responsible for many process controls and service standards that are considered best practices within the Private Equity fund administration industry. At Broadscope, the founders have brought together a senior team of experienced professionals who continue to set new standards of excellence. Contact Us If you want to free up time to focus on important strategic issues, please contact us. We have a lot to offer. Frank J. Palmeri Managing Partner FPalmeri@BroadscopeFA.com Stacey Arrigo Managing Director SArrigo@BroadscopeFA.com Broadscope Fund Administrators, LLC Federal Street Suite 1302 Boston, MA N State Route 17 Suite 304 Paramus, NJ Avenue of the Americas Suite 4062 New York, NY This material has been prepared for general informational purposes and is not intended to be relied upon as accounting, tax or legal advice. Please refer to your professional service providers for any specific advice you may require Broadscope Fund Administrators, LLC. Broadscope is a registered trademark of Broadscope Fund Administrators, LLC. bfaoverview Private Equity fund administration becomes more challenging with each new compliance issue, reporting requirement and increasing investor demand for greater transparency. Broadscope Fund Administrators is here to help, providing the right process controls, the right technology, and the right support and assistance to help you stay focused on what you do best. Broadscope delivers: Direct Access to Senior Management If you have an issue or challenge to be addressed quickly, or just have an idea to discuss, call us anytime. You ll speak directly with senior management, people who have the in-depth experience and understanding of your specific business workflows and agreement terms. You will have access to the experience and industry knowledge gained by industry experts through decades of exposure to a broad range of private equity issues. Streamlined Service Our client-team approach provides one point of contact, multiple levels of review and significant backup from qualified professionals significantly improving accuracy and responsiveness. Exceptional Flexibility We provide user-friendly portals with drill-down capabilities and dynamic reporting for accessing data that is easily downloadable in various formats. The look, feel and security are flexible and customizable to meet client-specific operational requirements and investor preferences. Data Security and Dynamic Reporting Anytime, Anywhere Our secure portals are available 24/7 from any internet connection. Our client portal, the Client Extranet, serves as a communications tool with real-time monitoring of significant business workflows. Our Investor Portal delivers investor communications quickly and securely, and the same drill-down and dynamic reporting capabilities available to clients are also available to investors. All your data is secure and backed up by redundant servers in multiple locations. Proven Process Controls Each workflow is an automated process embedded into our system to ensure that internal quality controls are followed and to provide real-time status updates to clients via the Web. In addition to dramatically increasing efficiency and reducing the risk of error, this provides an automated audit trail for client funds and internal SSAE 16 reviews. Industry Insight With expertise that extends to all Private Equity fund types and structures, we provide significant insight into industry standards and best practices used by other managers throughout the industry, helping you keep pace with constantly changing regulatory and market demands, and providing quick solutions to new challenges. Enhanced Efficiency We eliminate the need for substantial, ongoing investments in dollars and time setting up and maintaining technology solutions and managing increasing administrative and accounting staff. Investment professionals can focus on investment activities and fund performance, and CFOs can focus on high-level operational issues knowing their fund accounting, reporting and investor needs are continuously monitored by an experienced client team.

2 Services Broadscope offers a comprehensive range of fund administration services supported by senior professionals with broad experience in private equity fund administration. Broadscope uses customizable and scalable technology that allows clients and their investors to access their investment data using dynamic reporting tools and drilldown functionality through a secure Web portal. Table of Contents Private Equity Investment Funds 2 General Partner Entities 4 Institutional Investor Portfolios 5 Regulatory and Compliance Assistance 6 Management Companies 8 About Broadscope Fund Administrators 8 The independent checks and balances delivered by Broadscope s experienced administrators along with the transparency offered through our technology provides clients and their investors with the level of comfort demanded by today s regulated environment. Broadscope professionals work together with your management team to create synergies for the benefit of all parties, including your investors. Every engagement is unique. Our services are tailored and our technology is customized to meet your needs. Each client is assigned a team of experienced professionals who provide an unmatched level of day-to-day personal service that is responsive and accurate. Broadscope supports all closed-end private equity funds and all affiliated entities within a fund complex. Fund types include: Buyout and Growth Equity; Mezzanine and Distressed Debt; Venture Capital; Fund of Funds; Real Estate; Infrastructure; Secondaries and Specialty Funds. 1 Broadscope Services

3 Services Private Equity Investment Funds Your accounting and investor data is integrated into a seamless, single platform system that is extremely flexible and customizable. There is no patchwork of different technologies, no work-around processing and no layered front ends sitting on old technologies. Our technology solution facilitates efficiencies and dramatically reduces the risk of error. Each workflow process capital calls, distributions, allocations, portfolio purchases and sales, etc. is automated within our system and processed using proven checks and balances. Our technology solution facilitates efficiencies and dramatically reduces the risk of error. Investment and investor detail and all related reports for all of your fund entities are maintained in a secure data environment in the cloud, accessible via the Client Extranet, our secure, two-way communications portal. Online access and dynamic reporting capabilities are provided for immediate access and your data and reports are easily downloadable in various formats. Accounting and Reporting Services Annual and interim financial reporting Investor capital account maintenance and reporting Management fee calculation and allocation Profit and loss allocation processing Carried interest allocation and distribution calculations Portfolio investment tracking for specific allocations at the GP level Gross and net IRR computations Portfolio performance reporting Track portfolio detail using client-defined metrics Track and reconcile underlying investments for fund of funds entities Manage independent audits 2 Broadscope Services

4 Tax Services Tax strategy identification and planning UBTI, ECI and foreign withholding reporting Annual tax allocations through investor level, for review by independent tax accountants Annual tax estimates for fund of funds entities and direct funds with portfolios that include flow-through investments Coordinate preparation of K-1 Schedules Manage independent tax review and filing of final tax returns Cash Management and Administrative Services Review of fund documents during fund formation Monitor cash receipts Manage cash and short-term investments Facilitate cash transfers and payments for funding portfolio investments Manage vendor accounts payable Coordinate capital call process Coordinate cash and in-kind distributions Monitor cash forecasting for fund of funds entities Investor Services Coordinate fulfillment of all investor deliverables Secure Web-based delivery and dynamic reporting Maintain investor and related contact data using a proactive approach to ensure data is current Assist with transfers of ownership interests Timely response to investor inquiries 3 Broadscope Services

5 Services General Partner Entities The accounting and investor data for your General Partner entities is integrated with the same seamless, customized system used for your investment funds. As a result, related transactions are recorded simultaneously. This dramatically increases accounting and reporting efficiencies. Immediate access is available to you for review as needed and your data and reports can be easily downloaded in various formats. Services include: Annual and interim financial reporting Facilitate cash transfers, vendor payments and inter-bank transfers The accounting and investor data for your General Partner entities is integrated with the same seamless, customized system used for your investment funds. Monitor cash receipts Investor capital account maintenance and reporting Coordinate capital call process Cash and in-kind distribution processing Profit and loss allocation processing Track, allocate and distribute carried interest plan Manage independent audits Annual tax allocations for review by independent tax accountants Coordinate preparation and distribution of K-1 Schedules Secure Web-based delivery and dynamic reporting 4 Broadscope Services

6 Institutional Investor Portfolios Broadscope provides cash management, accounting and reporting services to Institutional Investors managing large portfolios of alternative investment funds. Your portfolio and other accounting data is integrated into one seamless, customized system no patchwork of different technologies, no work-around processing. This facilitates efficiencies and dramatically reduces the risk of error. Each workflow process is designed to provide you with timely access to your portfolio data for review as needed. Online access and dynamic reporting capabilities are provided for immediate access and your data and reports are easily downloadable in various formats. Investment data and all related reports for your investment portfolios are maintained in a secure data environment in the cloud and are available via our Client Extranet, our secure, two-way communications portal. Online access and dynamic reporting capabilities are provided for immediate access and your data and reports are easily downloadable in various formats. Accounting and Reporting Services Accounting for portfolio and other transactions as necessary Facilitate capital calls from underlying investments and other payments Monitor cash distributions and other cash receipts Monitor receipt of in-kind distributions Cash forecasting of portfolio funding requirements IRR and other portfolio performance reporting Look-through reporting of underlying investment holdings Coordinate review of portfolio holdings with independent audit firm Reconcile holdings with external custodian and other service providers Secure Web-based delivery and dynamic reporting Tax Services Monitor UBTI and ECI related transactions Coordinate tax estimates Summarize K-1 and other tax activity of portfolio holdings for review with independent tax firm 5 Broadscope Services

7 Services Regulatory and Compliance Assistance An essential element to Broadscope s full-service fund administration offering is assisting our clients in fulfilling their regulatory and compliance responsibilities. Our regulatory and compliance assistance begins with understanding your specific compliance program, developing procedures to support the program, automating data maintenance and reporting routines and managing regulatory examinations. FATCA (Foreign Account Tax Compliance Act): Assist with the development and implementation of a FATCA compliance program, unique to each client s operating structure Prepare a gap analysis of investor classification documentation An essential element to Broadscope s full service fund administration offering is assisting our clients in fulfilling their regulatory and compliance responsibilities. Remediate investor documentation gaps Assist with FATCA registration for foreign entities Implement FATCA investor documentation and withholding procedures Implement automated routines to capture and maintain required data and documentation Prepare all required FATCA reports for submission within the FATCA Portal U.S. Patriot Act: KYC (Know Your Customer) / CIP (Customer Identification Program) Assist with the development and implementation of KYC and CIP policies and procedures Collect and analyze investor identity documentation Perform PEP (Politically Exposed Person) screenings Perform Enhanced Due Diligence screenings AML (Anti-Money Laundering) Assist with the development and implementation of internal AML policies and procedures Cross-check new investors against the World Check database, including OFAC and other global watch lists Coordinate ongoing screening of investors against watch lists Coordinate responsibilities and procedures with client, external counsel and independent AML service providers 6 Broadscope Services

8 SEC Reporting: Form ADV Coordinate filing requirements for registered investment advisors with client and external counsel Capture and maintain financial data required for Form ADV Coordinate the document filing process Form PF Coordinate applicable SEC reporting requirements and filing deadlines Implement automated routines to capture and maintain required data Prepare draft of Form PF report for review and approval by client and external counsel Coordinate the document filing process through the PFRD (Private Fund Reporting Depository) 7 Broadscope Services

9 Services Management Companies Broadscope provides accounting, tax and administrative services required to support your Management Company. These services are provided by the same client service team who administers your investment funds and General Partner entities. Broadscope s Management Company administrative offering completes the full turnkey solution that complements our comprehensive suite of fund administration services. Services include: Prepare annual budget Monthly budget to actual reporting Monitor cash receipts Manage vendor accounts payable and process payment of vendor invoices Contact Us If you want to free up time to focus on important strategic issues, please contact us. We have a lot to offer. Frank J. Palmeri Managing Partner FPalmeri@BroadscopeFA.com Stacey Arrigo Managing Director SArrigo@BroadscopeFA.com Broadscope Fund Administrators, LLC Federal Street Suite 1302 Boston, MA N State Route 17 Suite 304 Paramus, NJ Avenue of the Americas Suite 4062 New York, NY This material has been prepared for general informational purposes and is not intended to be relied upon as accounting, tax or legal advice. Please refer to your professional service providers for any specific advice you may require Broadscope Fund Administrators, LLC. Broadscope is a registered trademark of Broadscope Fund Administrators, LLC. bfaservices Reconcile inter-company accounts within fund complex Invoice and monitor reimbursements from portfolio company investment entities Manage payroll with outside vendor Coordinate with other specialist service providers Prepare annual financial statements Manage independent audit process Tax strategy identification and planning Manage independent tax process Secure Web-based delivery About Broadscope Fund Administrators Broadscope employs a high touch, boutique model to provide full-service administration to private equity fund managers. Broadscope s premier service is based on direct access to experienced senior professionals, robust quality controls and innovative technology. The Company s founders and senior team have significant industry-specific experience and knowledge of a broad range of private equity fund types and structures, which forms the basis of Broadscope s personalized service offering. 8 Broadscope Services

10 Investor Portal Broadscope s Investor Portal Benefits Dynamic Reporting The Investor Portal provides dynamic drilldown and query functionality for quick access to current and historical investor and portfolio data. The query capabilities allow investors to access data for user defined date ranges. The drilldown and query capability significantly reduce the user s need to search through historical document libraries. Easy Integration Graphical and tabular reporting rendered in the Investor Portal can be easily downloaded to MS Excel and Adobe Acrobat for additional analysis and reporting. Custom Design The look and feel of the Investor Portal can be customized to appear as a seamless extension of our client s website. Contact Us If you want to free up time to focus on important strategic issues, please contact us. We have a lot to offer. Frank J. Palmeri Managing Partner FPalmeri@BroadscopeFA.com Stacey Arrigo Managing Director SArrigo@BroadscopeFA.com Broadscope Fund Administrators, LLC Federal Street Suite 1302 Boston, MA N State Route 17 Suite 304 Paramus, NJ Avenue of the Americas Suite 4062 New York, NY This material has been prepared for general informational purposes and is not intended to be relied upon as accounting, tax or legal advice. Please refer to your professional service providers for any specific advice you may require Broadscope Fund Administrators, LLC. Broadscope is a registered trademark of Broadscope Fund Administrators, LLC. bfainvestorportal Two-Way Communications The Investor Portal allows for two-way communications defined by the client. Through the Portal, investors can notify Broadscope of changes to contact data and wire instructions that automatically kickoff review and approval workflows and database updates. Impersonator Rights Broadscope clients are provided with impersonator rights allowing access to a specific user s Investor Portal view. One System / No Duplication The Investor Portal draws data from the same system that houses fund and client data, merge templates and merge processes for investor communications. This greatly reduces the risk of posting errors because it eliminates the need for duel databases and special processes required by other web-based portal systems. Data Warehouse The Investor Portal incorporates a flexible data warehouse as its core. The data warehouse can be customized to store data from a variety of funds, including private equity and hedge funds, providing a complete web-based portal solution for clients with multiple business lines. Costs When all fees are considered, the Investor Portal is generally less expensive than hard-copy mailings and most other web-based portal systems.

11 Partnering Partnering with Broadscope Fund Administrators Service Broadscope offers a boutique style, high touch model with direct access to senior management complemented by technology that is both innovative and flexible, offering web-based dynamic reporting capabilities for fund sponsors and their investors. Immediate turnkey solution for all fund administration needs provided by experienced professionals with in-depth knowledge of private equity specific accounting, reporting and administrative best practices. Broadscope s client team approach provides one point of contact, multiple levels of review and significant backup from qualified professionals significantly improving accuracy and timeliness. Contact Us If you want to free up time to focus on important strategic issues, please contact us. We have a lot to offer. Frank J. Palmeri Managing Partner FPalmeri@BroadscopeFA.com Stacey Arrigo Managing Director SArrigo@BroadscopeFA.com Broadscope Fund Administrators, LLC Federal Street Suite 1302 Boston, MA N State Route 17 Suite 304 Paramus, NJ Avenue of the Americas Suite 4062 New York, NY This material has been prepared for general informational purposes and is not intended to be relied upon as accounting, tax or legal advice. Please refer to your professional service providers for any specific advice you may require Broadscope Fund Administrators, LLC. Broadscope is a registered trademark of Broadscope Fund Administrators, LLC. bfapartnering Experience Broadscope founders have extensive private equity specific knowledge, industry contacts and a proven reputation for high-quality service, as well as a thorough understanding of the private equity investment process. Accounting and administrative professionals remain current with all applicable rules and regulations relating to private equity funds and registered investment advisors. Broadscope s experience with a broad range of private equity funds provides significant insight into industry standards and best practices. Efficiency Investment professionals can focus on investment activities and fund performance, knowing their fund accounting, reporting and investor needs are continuously monitored by an experienced client team. Administrative efficiencies reduce costs for fund managers versus the initial investment in staff and technology, the ongoing costs and related issues associated with building an in-house solution. Administrator independence provides an additional layer of comfort to fund investors. Broadscope communicates with its clients through a secure portal the Client Extranet a web-based communications portal with real-time task status monitoring streamlining the communications flow with fund sponsors globally.