Case Study: Outsourcing Global Investment Performance Standards Compliance

• Company: Large private equity and private credit manager with over $20 Billion in AUM
• Location: Global
• Financial Services Sector: Private markets

Background

The firm wanted to achieve compliance with the Global Investment Performance Standards (GIPS^®) standards, but struggled for several years to meet the requirements.

Challenge

The firm faced challenges aligning internal resources to create the GIPS framework and maintain ownership of the process.

Solution

The company decided to outsource its GIPS compliance program to ACA Group from end to end. ACA offered a comprehensive suite of services tailored to the company’s specific needs, with services including account and composite-level calculations and management, GIPS reports, and expert GIPS standards consulting.

ACA stepped in to finalize and document the firm’s GIPS policies and procedures manual, tailored to the firm’s needs. ACA developed customized templates for account and composite-level calculations and subsequently gathered the necessary data to populate the returns and statistics. ACA also conducted focused discussions with the firm to construct new composites and descriptions, assisted with researching performance errors, responded to GIPS-related queries, participated in departmental discussions, and supported the firm by acting as a liaison to their verifier through the annual GIPS compliance verification process.

ACA will continue to review, document, and maintain GIPS composite memberships in-line with established firm policies, ensuring proper assignment, removal, and reclassification of funds and accounts. ACA will maintain ongoing oversight and maintenance of the firm’s claim of GIPS compliance, including reviewing and amending GIPS standards policies, composite descriptions, and annual GIPS reports.

Results

By partnering with ACA, the firm was able to successfully map out a clear timeline to achieve GIPS compliance, benefiting from ACA’s expertise in performance measurement and comprehensive management of the compliance process. This partnership allows the firm to reallocate internal resources to strategic initiatives, fostering innovation and growth. Ongoing support from ACA, including maintaining composite memberships, periodic policy reviews, and assistance with new composite construction, ensures sustained compliance with evolving GIPS standards. The collaboration will result in improved efficiency and effectiveness, which will reduce both the verification timeline and cost while positioning the firm as a leader in transparent and accurate performance reporting.

Conclusion

The partnership between the firm and ACA demonstrates the value of outsourcing GIPS compliance to a reputable governance, risk, and compliance (GRC) firm. Leveraging the GRC firm’s expertise and resources enabled the firm to overcome its complex challenges while establishing and maintaining a high level of compliance with the GIPS standards. This ultimately led to increased trust from investors and continued growth for the firm.

How we help

Utilizing ACA's Managed Performance Services solutions allows firms to leverage unparalleled expertise, scalable solutions, and significant cost savings. In addition, collaborating with us can enhance service offerings, strengthen risk mitigation, simplify the intricate investment process, and seize opportunities for growth and innovation. 

We provide comprehensive support across various regulatory frameworks such as FINRA and the SEC, as well as industry standards such a GIPS and ILPA, tailored to meet your firm's specific needs. Our services include:

• GIPS compliance and verification support: We can manage the entire GIPS process, including composite management, account and composite level return calculations, outlier review, policy updates, GIPS report updates, and verification oversight, providing a complete solution for firms seeking full GIPS compliance management.
• Private fund reporting support: Our services extend to supporting private fund reporting and ILPA reporting, helping firms align performance metrics with investor expectations and industry best practices across private funds (including private equity, real estate, and credit) and liquid funds.
• Task-Based solutions: For firms with more specific needs, we offer targeted services, including:
  • Portfolio calculations, composite management, and reporting, seamlessly integrating with your existing systems to enhance operations
  • Building and maintaining customized investment track records, enabling you to showcase your firm's unique strengths and historical performance
  • Conducting thorough reviews and analyses of your fee calculation process to help ensure accuracy and identify areas for potential improvement
  • Assisting in generating performance data for marketing materials and responding to due diligence questionnaires
  • Analyzing and reporting key performance characteristics and risk metrics, helping you better understand and communicate your portfolio’s risk-return profile
  • Offering skilled professionals to augment your team or take on key tasks, allowing you to scale resources efficiently without compromising quality

If you would like to get in touch with our team today, we're ready to help. Start a conversation with us here. 

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