Our can do attitude to Private Equity holding

21 May 2018

Private Equity investment continued to have a stellar year in 2017 even surpassing the 2015 record by 9% to reach $681 billion, as capital poured in through traditional funds, co-investments, separate accounts and direct deals. Forbes reported that the asset class is set to make more records this year as new and current investors deposit more capital into their allocations. The magazine did sound a warning though, saying ‘both managers and investors need to be flexible and open-minded if they are to successfully negotiate the increasingly complex asset category.’

As an independent global custody, consolidated reporting and investment administration specialist, we know not all custodians are able to hold Private Equity. However, at Multrees we work with our clients as flexibly as we can to make it happen.

Due to the bespoke nature of many Private Equity funds and the lack of standard market instruments, each investment is assessed on an individual basis to identify the optimal custody arrangements. Funds often place legal or financial obligations on the legal owner of the investment, i.e. the custodian, rather than the underlying investor and at Multrees we address this by registering the holding directly in the name of our own nominee company.

We have experience of processing corporate actions, which by nature can be complex, to ensure the prompt processing of calls, distributions and the update of book costs. Clarity of reporting has traditionally been a challenge for custodians, and with our methodology, it provides transparency on the underlying private investments.

We have worked hard to structure our proposition to ensure we are well positioned to meet our clients’ needs. This year already looks set to be busier than ever as global Private Equity continues to be popular with investors.

For more information, please feel free to contact us.