NES Financial was recently acquired by JTC Group, an award-winning provider of fund, corporate and private client services to institutional and private clients, operating in 19 countries, servicing over $130 billion in assets. As part of this acquisition, NES Financial is now able to offer complementary products and services that we believe will be of interest and use to our current and future clients, including multi-jurisdictional Private Equity administration.
We chatted with JTC Group’s Wouter Plantenga, ICS Head of Group Client Services, about the future of fund administration and technology within JTC’s Private Equity administration. Wouter also shares his thoughts on fund managers on the fence about outsourcing, and why outsourcing is a necessity for businesses to grow.
What sets JTC Group apart from other fund administrators?
JTC’s company culture is a true differentiator compared to other fund administrators, which goes back to JTC’s Shared Ownership structure. This has been in place since 1998 and makes every employee a direct stakeholder in the business and is a true unique selling proposition which adds value by aligning our people directly with the interests of our clients and the business over the long-term. This truly sets JTC apart from other firms and has created a ‘stronger together’ culture. In fact, our ownership model is so unique that Harvard Business School included JTC in its 2019 MBA curriculum.
In addition to our ownership structure, JTC’s global platform offers fund managers access to experts within relevant international fund jurisdictions and who are able to simplify the perceived complexity when dealing with matters related to operating funds in a global environment. Our presence in the leading global fund jurisdictions allow managers to benefit from local insights when it comes to operating foreign investment funds, irrespective of the asset class, including dealing with matters related to Alternative Investment Fund Managers Directive (AIFMD) when raising funds in Europe, listing funds on the London Stock Exchange or setting up special purpose vehicles to acquire illiquid assets abroad.
What is the future of Private Equity and what role does technology play in JTC’s Private Equity administration?
In terms of US Private Equity from an operational perspective, there is a continuing trend still among mid-market fund managers who are considering outsourcing from the first time. There are a number of reasons for that, including investors demand for transparency and third-party independence, increased complexity in administrative duties and tasks which require the need for an experienced administrator, continuity or key man risk and capacity concerns especially in the current environment where back-office operations of fund managers are tested to the fullest.
As a JTC Company, NES Financial’s purpose built and solution-driven technology plays an important role in operational efficiency, delivering faster processing times, from onboarding investors to generating financial statements, without adding head count or managing in-house technology.
We believe that moving from traditional, spreadsheet-based accounting and data management to integrated, technology-driven solutions is the first step on the path to operational excellence while keeping overhead expenses low for our clients.
What is the No. 1 advice you would give to a fund manager on the fence about making the decision to outsource today?
Make sure you are ready for the change that initially comes with making the decision to outsource for the first time and are willing to embrace it. Many fund managers have started from scratch and have built an environment of trust with their investors and other external and internal stakeholders. Relinquishing control over processes which managers would typically handle themselves could be a challenge at first, but ultimately becomes a necessity to continue to be able to grow. With this said, it is important for managers to take their time and conduct the proper due diligence. It is key to have an adaptable and flexible partnership model with your administrator, who is available to answer all of your questions, rather than offer an off-the-shelf product or generic service model solution that does not fit your needs.
To learn more about JTC and NES Financial’s exciting multi-jurisdictional Private Equity solutions, please RSVP to join Wouter at our free PE webinar on July 22 at 11:00 a.m. PT by clicking below.