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Preparing for SEC Examinations
About our Contributors ICS Group is a regulatory compliance consulting firm specializing in providing compliance support to the financial services and insurance industries. We help our clients comply with regulatory requirements and industry standards. Our clients include: registered investment advisers, private equity funds, hedge funds, mutual funds, broker-dealers, insurance companies and state pension plans. Our team of highly experienced compliance professionals know from first-hand experience what regulators are looking for, the industry standards that apply, and how to develop and implement cost-effective business-oriented solutions. Over the past few months several ICSGroup clients have had their very first SEC examination. We’ve noticed some noteworthy trends in the types of issues that the regulators are most concerned. Being aware of these issues will enable you to be more prepared for the inevitable SEC exam and help you avoid being cited for a compliance deficiency. What We’ve Noticed Here we have compiled a
Vista Combines Financial Software Providers to form Finastra
LONDON and TORONTO, June 14, 2017 /PRNewswire/ – Today Misys and D+H have joined forces to create a diversified global financial software provider, unmatched in terms of depth and breadth of solutions. Operating under the new company name Finastra (www.finastra.com), the combination will create the third largest financial services technology company in the world. The company has approximately 10,000 employees and over 9,000 customers across 130 countries, including 48 of the top 50 banks globally. This follows the acquisition of D+H by Vista Equity Partners, which already owns Misys, creating a merger of two highly complementary financial technology providers. Finastra will be led by Nadeem Syed in the role of Chief Executive Officer. Mr. Syed was previously CEO of Misys and has over 27 years of experience leading global technology companies through transformation and growth. The company has U.S. $2.1 billion* in revenues and has offices in 42 countries around the
HarbourVest Partners Invests in Performance Analytics and Reporting Solutions Developer
June 20, 2017 – Investment Metrics, a leading provider of performance measurement, investment analytics, risk attribution, market intelligence and reporting software to the investment management industry, announced today that it has received a significant equity investment from Resurgens Technology Partners and HarbourVest Partners. The new partnership will enable Investment Metrics to make continued investments in its existing solutions and to support its growth and market expansion globally. Investment Metrics provides a full suite of performance analytics and reporting solutions to institutional consultants, plan sponsors, asset managers and private wealth advisors. Built by institutional investment consultants, the company’s products are utilized by industry leaders across the investment management industry. In aggregate, the Investment Metrics platform enables performance analytics and client reporting across $7 trillion of assets under advisement for over 2,500 institutional plans. “Investment Metrics was looking for strategic investors with the experience, resources and network to help scale our business
Valuations as a Private Equity Risk
While accounting standards, valuation frameworks and industry guidelines have been moving towards standardization of valuation principles, private equity (“PE”) fund managers still have substantial freedom when valuing their portfolio companies. For example, there is inevitable temptations to present interim performance numbers in a particularly favorable light when raising a follow-on fund or limiting write-downs during down markets. On the other hand, there may be general incentives to smooth returns by using conservative values in normal or good times to avoid a negative surprise to investors when assets are ultimately sold. Recent academic studies have shown that some advisers do in fact inflate valuations during periods of fundraising. The first large scale study on this topic by Tim Jenkinson, et al. stated: “We find that valuations of remaining portfolio companies, and therefore reported returns, are inflated during fundraising, with a gradual reversal once the follow-on fund has been closed. This finding
Vista Equity Partners Invests in Cloud-Bbased e-Discovery Software Provider
PORTLAND, OR–(Marketwired – May 16, 2017) – Zapproved Inc., the market leader in cloud-based e-discovery software for corporate legal departments, today announced that the company has received a strategic investment from Vista Equity Partners (“Vista”) to accelerate their growth in the e-discovery software market. Vista is a leading private equity firm that invests in software, data and technology companies. The partnership with Zapproved is the first from Vista’s newly launched Endeavor Fund, which focuses exclusively on enterprise software and data businesses under $30 million in revenue. Vista offers these companies and their management teams the financial capital, expertise and support to build an operational foundation for sustainable growth while maintaining and advancing their market leadership. “Zapproved has been at the forefront of providing software to in-house legal teams to help them take control of their litigation response and electronic discovery,” said Zapproved CEO and founder Monica Enand. “Our customers require
Sycamore Partners Acquires NBG Home
NEW YORK, April 27, 2017 /PRNewswire/ — Sycamore Partners today announced that it has acquired NBG Home (“NBG”), a leading global designer, manufacturer and marketer of affordable home décor products from Kohlberg & Company, L.L.C. NBG offers an extensive array of home décor products, including ready-made and custom framing, lighting, accent furniture, wall décor, and soft goods under a portfolio of leading brands. The company serves a wide variety of retail clients, including mass merchants, specialty stores, discount stores, home centers, warehouse clubs, and internet retailers. “The NBG management team has built the market leader in affordable home décor through a relentless focus on serving their retail partners and end consumers,” said Peter Morrow, Managing Director at Sycamore Partners. “We are excited about the opportunity to invest in an attractive niche of the consumer products industry and look forward to building NBG alongside its best-in-class management team.” “Across our numerous
ICV Partners Invests in Client Acquisition and Lead Generation Specialist
TAMPA, FL, May 9, 2017 – ICV Partners, LLC, a leading investment firm focused on middle market companies, announced today its investment in LeadingResponse, aclient acquisition and lead generationspecialist to professional service firms. Terms of the transaction were not disclosed. Founded in 1995, LeadingResponse offers technology enabled, data-drivenclient acquisition services to professional services end markets.Headquartered in Tampa, FL and with operations in Plano, TX, the company has annual revenues of approximately $70 million and employs 150 people. Lloyd Metz,Managing Director of ICV Partners, said, “Leading Response, under CEO Charles DallAcqua’s leadership,has become more focused and results oriented driving an improvement in the customer experience as well as the bottom line. The Company has built strong capabilities to target high quality client prospects which helps its customers meet their sales goals. ICV Partners is excited to work with the Company’s founder Jorge Villar, Charles and his leadership team to build upon
GenNx360 Capital to Sell Manufacturer of Dump Truck Bodies
GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm, is pleased to announce that it has entered into a definitive agreement to sell its portfolio company, Truck Bodies and Equipment International (“TBEI”), a leading U.S. manufacturer of dump truck bodies and trailers, to Federal Signal Corporation (NYSE:FSS) (“Federal Signal”), a leader in environmental and safety solutions, for $270 million, subject to post-closing adjustments. The transaction is expected to close post customary closing conditions. During the twelve months ended March 31, 2017, TBEI generated revenues of $206 million and an EBITDA margin of approximately 18%. GenNx360 acquired TBEI in September 2015. During the investment period, the strategic acquisition of Travis Body and Trailer further strengthened TBEI’s brand providing expertise in aluminum dump trailers and dump bodies, expansion into the Southwest, a strong and loyal dealer network, and positioned TBEI as a platform for growth. TBEI has successfully built a portfolio
Palladium Equity Partners Completes Investment in Trail Mix Producer
NEW YORK, NY and MADISON HEIGHTS, MICHIGAN, April 5, 2017 – Palladium Equity Partners, LLC (along with its affiliates, “Palladium”), a private investment firm with approximately $2.0 billion in assets under management, today announced that one of its affiliated private equity funds has made a significant investment in partnership with the owner of Kar Nut Products Company (“Kar’s”), a well-known manufacturer of branded trail mix, marketed under the nationally-recognized Kar’s and Second Nature brands. Terms were not disclosed. Founded in 1933, and led by President Nick Nicolay, Kar’s offers a broad portfolio of products in a range of formats, including a portfolio of traditional value-oriented trail mixes and nuts sold under the Kar’s brand, as well as premium, all-natural products for health-conscious consumers, sold under the Second Nature brand. The company has built national distribution through a blue chip customer base including grocery chains, club stores and distributors. Palladium will
Neuberger Berman Deepens Commitment to China
Hong Kong, April 18, 2017 — Neuberger Berman, a private, independent, employee-owned investment manager, is pleased to announce the opening of an investment management wholly foreign-owned enterprise (WFOE) in Shanghai. The launch of the WFOE reaffirms the company’s long-term commitment to this important market. The WFOE will allow Neuberger Berman to operate an onshore investment management business in mainland China, subject to the registration with the Asset Management Association of China (AMAC). Once the registration is complete, Neuberger Berman will be able to manage and distribute private funds to a broader client franchise including private banks, independent wealth management platforms and local institutions. Given this new development, Neuberger Berman has made several senior appointments in China. Industry veteran Patrick Liu recently joined the firm as Head of China and General Manager of Neuberger Berman Investment Management (Shanghai) Limited. Mr Liu was previously CEO of HFT Investment Management, a joint venture