NAV Supports Successful Emerging Manager Fund Launch and Significant Growth
Client
North Peak Capital
Background
North Peak Capital was an emerging fund with an AUM of less than $5 million when initially partnering with NAV. The fund’s focus is long-biased long-short equity, driven by deep research as well as selective and patient investing. The firm is also dedicated to humanitarian goals, consistently donating to several charitable causes. North Peak Chief Financial Officer and Chief Compliance Officer Michael Lorch shared his experience working with NAV. He joined the firm when it had reached $75 million AUM; today North Peak has AUM of more than $1.2 billion.
How NAV Helped
Emerging Manager with Lower AUM
Challenge
It is often difficult for emerging funds to find administrators willing to work with firms that do not meet a minimum AUM requirement.
Solution
NAV requires no minimum AUM threshold.
Outcome
“The North Peak fund began with less than $5 million AUM, but NAV partnered with them from day one,” Lorch said. NAV's philosophy is that every client — regardless of size — merits the same superior quality of service and support, including the full suite of fund administration, investor services, reporting, and compliance support. The goal is to foster a lasting partnership that offers consistent and ongoing support through the launch process and beyond.
Draft Documents Review
Challenge
The multitude of complex documents associated with a new fund launch can sometimes lead to detrimental errors or omissions.
Solution
NAV’s experienced team reviewed drafts of North Peak’s offering documents to confirm accuracy and completeness.
Outcome
The NAV team reviewed multiple documents and updates including PPM and LPA updates, subscription documents, and engagement letters, helping to reduce delays associated with a new launch. “The NAV review of our offering documents helped save us the added cost and coordination time that would have been required to source and contract with an additional third party,” Lorch said.
Promoting and Managing Growth
Challenge
Marketing a new fund and capably managing an expanding investor base can be complicated.
Solution
North Peak has benefitted from NAV’s expertise, knowledge, and industry connections.
Outcome
“NAV’s ability to build historical accounting and return calculations to demonstrate and validate proprietary fund strategy for potential investors helped North Peak grow their business to its current $1 billion+ AUM,” Lorch said. “NAV also created supplementary support files including transparency reports, exposure reports, proforma reports, and similar data to help bolster our marketing efforts.” As the fund grew, NAV worked with North Peak to migrate historical trading data since inception from NAV’s systems in order to implement new order management tools at North Peak's end. NAV also provides monthly reporting to various custodians, including National Financial Services (NFS) and Pershing, to streamline fund operations.
Fees
Challenge
Annual pricing increases and add-on service fees can be a budget burden.
Solution
NAV is recognized for offering the best value in the industry with a straightforward and clearly defined fee structure and no yearly raise in prices.
Outcome
NAV is committed to providing the highest quality and most cost-effective fund administration solutions featuring transparent, all-inclusive pricing and no set-up or transaction fees. The goal — particularly for emerging mangers like North Peak — is to add value in a committed partnership. “We appreciate that NAV’s competitive fee structure is designed to scale as a fund grows, supporting successful fund development,” Lorch said.
Multiple Vendors
Challenge
Multiple vendors managing various aspects of the business can lead to miscommunication and increase the costs and internal resources required to manage them.
Solution
NAV offers a tailored, all-in-one solution.
Outcome
Beyond fund administration, NAV provides financial statement preparation, tax services, and management company accounting for North Peak, as well as assisting with other reporting, including Form PF and 13F, and handling audit queries. “Working with one dedicated service provider and integrated system to handle multiple tasks with minimal involvement from our in-house resources streamlines the experience for North Peak and our investors, while also offering operational efficiency,” Lorch said.
Timely Reporting
Challenge
Late and/or inaccurate reporting can cause internal organizational roadblocks and increase investor inquiries.
Solution
NAV typically delivers daily reporting by 6:30 AM ET of the next business day and official NAV reporting within 2-3 working days of period end.
Outcome
“It’s beneficial to us and our investors to be able to count on routine delivery of reporting that is complete and accurate,” Lorch said. “We appreciate the reliability of the quality and timeliness of our official daily and month-end reporting.”
