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EFA launches new private equity business

Posted: 16 April 2008

EFA has created a new business unit for the administration of private equity and real estate funds: EFA Private Equity.

The unit, headed by industry expert Pascal Leclerc, will provide a comprehensive suite of services to a wide range of private equity and real estate structures, via a dedicated team operating a customised software solution.

The launch was prompted by increasing demand EFA encountered for high quality, specialised private equity fund administration services. Investor desire for portfolio diversification and non-index correlated returns means investment in private equity has grown rapidly in the last decade, with €112.3 billion of funds raised in 2006; triggering a requirement for suitable portfolio accounting and consolidation.

EFA has provided services to private equity funds since its creation in 1996, administering venture capital, mezzanine, buy-out, infrastructure, microfinance and real estate opportunistic vehicles among others. EFA currently administers 29 funds on behalf of 3 categories of investment managers: private banks, boutique investment houses and the private equity arms of general investment companies.

In 2007 EFA carried out an extensive study of best-in-class private equity administrative practices with the intention to further strengthen its service offer. The analysis highlighted the specificities of private equity administration: pricing a wide variety of unlisted securities or those from newly established markets, non-standard register and portfolio transactions and particularities of each portfolio valuation. To best manage these requirements EFA decided to establish a separate and dedicated business line.

EFA Private Equity will use an experienced stand-alone accounting and investor servicing team to provide end-to-end services for EFA's private equity and real estate clients.

Operating via an industry-proven dedicated software solution, EFA Private Equity's systems will be installed in a segregated environment. EFA Private Equity will provide a wide range of administrative services for private equity and real estate funds, including domiciliation, fund formation and liquidation, transaction and legal services, investor reporting, accounting services, tax reporting services and support services.

The new business unit will also administer real estate funds, taking advantage of comparable service and system requirements for both types of fund.

Click here for more information on EFA

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