October 2016 Issue

Private equity players head to the Balearics for some sun, sea, and secondaries action while some fund managers reveal their fun side with fancy dress shenanigans.

Pending anti-money laundering policy requirements for investment advisors can create anxiety. EisnerAmper’s principals Louis Bruno and Barry Eisenberg and director Venkat Rao discuss the ins and outs of crafting a sound AML program.

A general counsel does more than ever, so pfm brought five together to discuss current practice, the effect of regulations on their business and the issues most likely to surface in the future.

When a company is sold, the buyer owns the management team’s pre-deal e-mails too. Shawn Atkinson, a partner at orrick, outlines some of the risks.

EQT’s Sven Törnkvist talks to Victoria Robson about digital change and the challenges of finding the right team members.

GPs who enjoy outsized demand for their fundraising find themselves managing a delicate situation

Far too often state and local tax issues get glossed over during the private equity deal cycle, when there may be real liabilities – and opportunities. Pfm sat down with Crowe Horwath’s state and local tax practice specialists Sara Arvold, Jon Cesaretti, and Chris Hopkins to learn the best way to handle blind spots in addressing state and local tax matters.

The true worth of any portfolio company’s cutting-edge systems and processes depends on the ability to mine them for insights into what really drives that business.

Trying to win over hearts and minds post-acquisition may seem like a nebulous goal, but there are consequences for neglecting it.

With new acquisitions, there’s an understandable rush to integrate and press on. But Brad Patrick, chief human resources officer at Shearer’s Snacks, warns that companies need to take the time to communicate their plans so everyone understands what to expect.

In any private equity deal, IT strategy should align with business need and have a seat at the table. Marc Baker and Doug Schrock of Crowe Horwath outline the four steps firms need to follow.

In the race for growth at portfolio companies, private equity firms may inadvertently neglect the finance functions at businesses they own. John Kurkowski, a Crowe Horwath audit partner, highlights how important finance teams are to the health of any investment.

As hackers grow in number and cleverness, cyber attacks are not a case of ‘if’ but ‘when.’ The key is in adopting a strategy of cyber resilience. By Mike Del Giudice and Chris Wilkinson.

The OECD is advising regulators to seek greater clarity in transfer pricing. Dr Barry Freeman, a transfer pricing principal and PhD economist with Crowe Horwath, discusses how private equity groups can prepare for regulatory interest in pricing of intercompany transactions.

With most of the industry driving returns through operational improvements, hiring an ex-CEO or ex-CFO to lend expertise is more popular than ever. But how does one match the right executive with the right transaction? Doug Schrock, a principal with Crowe Horwath, discusses choosing the best operating partner.

A buy and build strategy is a key route to generating value at portfolio company level. But the relationship between GP and management is central to success.

Fund managers may need to consider alternative exit strategies for their portfolio companies, but if they are planning an IPO or selling to an ESOP early preparation is essential. By Marc Baluda, Tony Klaich, and Simon Little.

Two years on from our last survey and there are signs that the industry is getting to grips with the demands of regulators and investors, but change will not happen overnight.

The SEC and ILPA have put fees firmly in the spotlight, but is the industry any closer establishing a standard that all investors can agree on.

Some GPs still charge operating partner fees to their portfolio companies, despite greater SEC scrutiny, but attitudes are changing.

Jennifer Choi, managing director of industry affairs with the Institutional Limited Partners Association, explains the group's latest efforts to unify and codify the disclosure of fees and expenses.

Agreeing on who foots the bill for SEC examination costs is becoming a constant battle between GPs and LPs, and the situation is unlikely to improve anytime soon.

GPs are feeling more comfortable with charging the cost of schmoozing to the fund, raising questions about the alignment of interests between GPs and investors.

The ongoing stream of new regulatory requirements covering expenses can be overwhelming but PEF Services’ Anne Anquillare says a proactive strategy can keep managers ahead of the game.

As pressure from both regulators and investors builds are fees and expenses burying the PE model for smaller funds?

As fees become a priority for both LPs and the SEC, fund managers are having to rethink expenses when handling investments.