FSB Partners’ Post

How to keep your Venture Capital fund operations lean.... Keeping operational costs in check is critical for maintaining profitability and surviving as an emerging fund manager. A Fractional CFO can provide guidance on how to avoid overspending on unnecessary finance and operations technology and negotiate better service provider contracts for investment technology. Thinking lean operations and an impactful tech stack are only feasible for large funds are false. Addressing how to reduce overheads without sacrificing quality is key. Main Points to Remember: • A Fractional CFO can negotiate better contracts and avoid unnecessary discretionary spending. • Don't guess how to reduce administrative overhead effectively and efficiently - ask someone that knows. • A fractional CFO can help with creating lean operations, providing expertise without the expense of a full time hire, ensuring you maintain quality while watching costs. Looking to optimise and scale your fund finance & operations without breaking the bank? Get in touch! #FractionalCFO #FundAccounting #VentureCapital #VC #FundOperations #FundRecruitment #FSBPartners

Fractional CFOs can help VC Funds get their operations right first time! #FractionalCFO #FundAccounting #PrivateEquity #VentureCapital #HedgeFunds #FundRecruitment #FSBPartners

Launching a private fund that is prepared to take institutional capital is a considerable undertaking. It spans various business areas, including investment strategy, operations, technology, compliance, finance, and administration. New fund managers, while experienced in managing outside capital and advising businesses, often find themselves navigating uncharted waters. Critical decisions about vendor partnerships, system implementations, and policy adoptions need to be made, all requiring meticulous budgeting and cash forecasting to ensure the firm's successful launch and operation. This can be quite a challenge for those with limited personnel, financial resources, and a tight timeline. This is where an experienced launch advisory service provider becomes indispensable. Ideally staffed by former private equity CFOs and Controllers, these teams offer invaluable insights during the pre-launch phase across various business functions. They can temporarily fill the CFO role until a permanent hire is made and assist in finding the right candidate for this crucial position. Their expertise ensures the establishment of an institutional-grade operational infrastructure that meets investor due diligence requirements, facilitates a successful capital raise, and sets a foundation for scalable and cost-effective growth. Learn more about the advantages of engaging an experienced launch advisory service provider in our latest thought leadership: https://lnkd.in/eXSch-3Q Please reach out to Lorena Richards, CPA to learn more about Petra’s Launch Advisory Service offering. #PrivateEquity #FundLaunch #LaunchAdvisoryServices #PrivateFunds #FundAdministration

🗃️How does a private equity fund work? ➡️Investor Commitment: ◾Investors commit to a fund at the beginning, agreeing to provide funds over time as needed for investments, fees, and expenses. ➡️Investment Process: ◾Private equity fund managers use their expertise to identify investment opportunities. ◾When a suitable investment is found, the required amount is drawn from investors and invested in the chosen portfolio company. ➡️Portfolio Management: ◾The fund manager works closely with the management of the portfolio company for an average of three to five years. ◾The goal is to enhance the company's value through various means, such as launching new products, acquiring technologies, or restructuring. ➡️Exit Strategy: ◾After improving the company's performance, the portfolio company may be sold to another investor or listed on the stock market for a profit. ◾Profits are distributed to investors, with a portion retained by the manager as a performance fee (carried interest). ➡️Use of Investment: ◾Funds invested in portfolio companies can support various purposes, including business startups (venture capital), product development, technology advancement, acquisitions, working capital expansion, balance sheet strengthening, company restructuring, or resolving ownership issues like management buyouts. This simplified explanation outlines how private equity investments work and the potential uses of capital within portfolio companies. #FundAccounting #PrivateEquity

What does it take to build a $1,000,000,000 wealth management business? Unlike tech startups, which may achieve billion-dollar valuations through significant capital injections and high valuations, a wealth management firm reaches this milestone differently. A $1B wealth management business refers to having $1B in assets under management (AUM), where investment managers oversee these accounts and earn advisory fees. While AUM-based fees are standard, some advisors also charge retainers for consulting on funds outside of their direct management, providing flexibility for clients such as small business owners with asset liquidity constraints. Advisors might work with clients whose net worth is tied up in non-liquid assets, like private businesses. In such cases, advisory services tailored to these scenarios can add significant value without directly managing those assets. Scaling to $1B in AUM requires strategic planning and a focus on both asset management and client acquisition strategies. Continuous engagement and providing value-added services can foster client trust and drive business growth. visit aumgrowthmarketing.com to know more

Having that capable set of eyes watching out for you, does wonders for your future path forward. Whether is it sighting early opportunities, or plugging gaps in your existing systems... Working with the right individuals can give you priceless results. Dr Lena Morrish inspired this post with a fantastically insightful comment: https://lnkd.in/gEFHVZXd Impacts are impacts to me, but no-one else... UNLESS, I tell the world about it! I would love to highlight a few friends that have made a HUGE difference to how I do things now [and I see the impacts!] Ashvin Praveen: Brilliant friendly chap, and full of wonderful, fantastic ideas. To top it off, he has experience in a multitude of things, and is willing to dive into an unknown idea to "suss it out". Conversations with him always give me a better path forward. He is co-founder of Cleve.ai and has been posting a whole bunch on it too, check it out! Ruth Lee: A superb, SUPERB communicator & writer & content creator & idea-ator. She has writing skills that knock me over all the time, and wit and humor to match. Along with various useful experiences that help to build a project. Any project. Khim Lim (林美琴): A wonderous people-person. I daresay a lot of the recent skills I've picked up in connecting with people, I've picked up from her. From the way she thinks, to how she approaches relationships... Magic! There are many many other's I've learned from, or been impacted by, along the way. The friends mentioned above are ones that I've had more conversations with thus far. Happy to be here learning and sharing with everyone too! #infinityplatinum

The greatest thing that will impact the real estate investment management industry is not the buy/sell or even asset management. Its not the vintage of the funds being raised. Its not about how great your returns are. The ZIRP era is over and with it comes the need to be judicious. The need to be efficient. The need to fundamentally re-think everything about how you run your business. Rethink your value proposition. Rethink what your great at. Its about one It’s how we re-organize our organizations. The greatest thing that may impact your org are also two of the most important people in your organization. Your CFO and your COO. Their roles are expanding. Their responsibilities are growing. They drive financial and operational discipline. They ensure your building a durable company with enterprise value. They are thinking about succession, policies and procedures, regulation, governance, technology, financing and structuring. All the things that matter. They serve as a counter balance to deal deal teams and fundraising teams. They find ways to make you better and ultimately build enterprise value. They are setting the course of your organization. Treat them like your future depends on them… …it just may.

Are you an emerging VC fund manager? Launching a new VC fund and running financial operations can be time consuming, diverting attention from your core business activities. A Fractional CFO allows a fund manager to concentrate on sourcing investments and raising capital, while they handle the financial complexities, ensuring smooth and efficient operations. Let a Fractional CFO manage your finances so you can focus on creating value for your LPs. #FractionalCFO #FundAccounting #VentureCapital #VC #FundOperations #FundRecruitment #FSBPartners

Are you an emerging fund manager? Launching a new fund and running financial operations can be time consuming, diverting attention from your core activities. A Fractional CFO allows a fund manager to concentrate on sourcing investments and raising capital. Let a Fractional CFO manage your finances and operations so you can focus on creating value for your LPs. #FractionalCFO #FundAccounting #PrivateEquity #VentureCapital #HedgeFunds #VC #FundOperations #FundRecruitment #FSBPartners

Venture CFOs: You might find Private Funds CFO's article on "LP Requests" insightful, and in alignment with what we're focused on at Juniper Square. - LPs are requesting more detailed, timely, and higher frequency in reporting - LPs are becoming increasingly concerned with valuations and its methodologies in order to recalculating their returns - For lean GPs, its difficult to respond to so many ad-hoc investor requests - to overcome this, fund admins are working to standardize data for all LPs - CFOs need to prepare reports for LPs, the Investment Team, and the IR function - each have separate reporting needs, but reports require data to be generated manually since legacy platforms don't speak to each other *The above "data problems" are at the forefront of our business and consistent with our vision of getting fund ops "out of excel"