To sum up, Private Assets include Private Equity, Real Estate, Infrastructure, Debt, Microfinance, etc. In Luxembourg, this sector continues to develop for numerous reasons, including a flexible legal framework and a stable tax environment.
EFA is a major player in funds administration in Luxembourg. Private Assets’ business is by definition different compared to traditional funds industry so if you think EFA’s activities are limited to traditional funds, you could be wondering why we participate in this Private Equity Paperjam dossier.
In fact, EFA started working on Private Assets structures a few years ago, opening to new clients or offering existing clients solutions to follow their business. Being an important player in the traditional funds requested as well to offer robust Private Asset Services to clients dealing with both products and strategies.
Private Assets’ business is not traditional funds so this ambition requires significant investments.
Since 20 years, we strongly believe that the role of a central administration goes far beyond NAV calculation and that clients seek a partner that can bring added value and support them in their day to day business. For Private Assets as well, EFA’s mission is clearly to provide the best administration services so its clients can forget about it and focus their resources and energy on performance.
As we mentioned earlier, Private Assets’ business is not traditional funds so this ambition requires significant investments.
The first investment that comes to mind is of course technology. Robust, state-of-the-art IT solutions are required to be able to comply with the more and more sophisticated structures brought by our clients. That is why EFA has developed, in partnership with TEMENOS, a dedicated platform in Multifonds for the administration of Private Asset structures. This solution enables EFA to administer commitments, capital calls, transfer and distribution through a dedicated Private Assets module. To complete the offer, FIS-INVESTRAN has been selected for the accounting and reporting. This partnership setup with FIS allows EFA to increase its reporting capabilities and to offer a very high level of services.
A common mistake would be to think that this technology will be self-sufficient and could be monitored by traditional funds professionals.
These strong investments in technology guarantee us to be able to answer to complex inquiries but is it enough to provide the best client experience and services? After such IT investment, a common mistake would be to think that this technology will be self-sufficient and could be monitored by traditional funds professionals.
Good technology is important in this business. Capital calls cannot be missed, reporting needs full transparency and data need to be available… but, especially in this business, technology is as efficient as the professional using it.
Human resources is the adjustment variable that differentiates companies in Private Asset Services. Private Assets dedicated profiles differ strongly from the one in the classic funds business. Coincidentally, the profiles that will truly bring added value in Private Assets are in demand on the employment market and difficult to find.
Experience and good training is key to reach this level of expertise.
These professionals are versatile and have a perfect understanding of complex structures while keeping in mind the full scope of the projects. Each product, each structure have a specific purpose and unlike other business lines, very few Private Asset Services can be fully automated. Of course, experience and good training is key to reach this level of expertise. This expertise allows them to accompany their clients during all the lifecycle of their structures and become essential partners for their clients and their business.
Another major difference between professionals of traditional funds and Private Assets is the communication skills required. Contacts with clients or even end investors are common and need to reflect our expertise and high quality of service.
That is why EFA did not stop at investing in technology for its Private Assets business line. We are investing heavily in recruiting experienced profiles and we are ensuring the continuous training of existing teams.
We strongly believe that a company can have all the technology in the world, without the right staff, it is bound to fail.