Blue Point Capital Partners, a $1.5 billion private equity manager, has appointed PEF Services as its new fund administrator, following a $2 billion capital raising scheme.
The mandate comes as private equity mangers look to outsource their middle- and back-office operations, after seeing an influx of institutional money into private equity assets.
Blue Point recently closed its fourth buyout fund, in which it had raised nearly $2 billion in capital across four of its institutional funds.
"Until now, we have managed our back office functions with internal resources. Supplementing our internal resources will help support our growth and trend toward greater transparency,” said Colleen Greenrod, chief financial officer, Blue Point Capital Partners.
PEF Services specialises in accounting, financial reporting, capital call and distribution processing, and audit and tax return support, among other services.
Private equity assets have grown significantly off the back of support from pension funds and insurance companies. However, it has now become harder for managers to run their enlarged operations using manual processes and legacy systems.
In response, managers are resorting to employing third parties who have the technology and scale to take on their workload.
“We’re delighted to welcome Blue Point to our family of clients and look forward to helping them achieve greater efficiencies while providing superior service to their investors,” said Hank Boggio, chief revenue officer, PEF Services.