April 2023
Vol 9 | Issue 601

Q&A with Nicole Loftus of Fund Services Company

CEO

Principal Series:

The company is a full-service tech-enabled fund accounting and administration firm providing turnkey services for many different types of pooled investment vehicles, including registered funds, open and closed, ETF, and non-registered investment partnerships.

The firm also offers unitized accounting and reporting solutions to foundations, endowments, and government budgets and investment pools.

Services include:
• Consulting on fund structures
• Fund organization, drafting of disclosure documentation and regulatory filings
• Fund accounting
• Compliance and regulatory administration
• SEC-registered Transfer Agent
• Cash management & expense processing
• Statutory distribution
• Annual and semiannual financial reporting
• Audit & tax support

The fund services firm is one of the largest, independently owned accounting
providers in the US, currently administering approximately $43 billion in assets.

Join us for a private Family Office Insights Webinar featuring an Inc. 500 #8 entrepreneur leading an acquisition/buyout of one of the last privately-held fund services firms in the country. Nicole and a rock star leadership team within the firm is ready to exit the founder and take the company to the moon! Well…at least to 5X+ in 5 years! The fund services market is wide open with big banks and Ultimus sitting at the top. The rest of the mountain is up for grabs and this team is ready to grab it.

April 25, 2023 at 2:15pm-3:15pm EST
RSVP & Confirmation Required
Investors Only Please!


Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com


What don't we know about registered fund services.

Registered Funds Are:
 
Open-End Funds - Mutual Funds (80% of all Registered Funds) and ETFs

Closed-End Funds - Interval Funds and BDC’s

Unit Investment Trusts like Family Offices

Only a few firms offer services to registered funds, and only a handful specialize in registered products. The acquisition target is one of the privately-held firms in the industry - PE firms or large banks own the others. 

Ultimus Group is the largest and is owned by Private equity firm GTCR. In May of 2022, GTCR announced they are exploring a sale of Ultimus for $2 billion.

The acquisition target is well-known, respected, and perfectly positioned to be a new leader in the industry.

How are you going to blow the industry wide open and win every piece of business out there?

Many corporates and government entities run registered funds and they all like buying from privately-held business and they all track diversity spend. Being a woman-owned business offering first-tier diversity spend credit will get our fund services firm on every RFP and once on there our high-touch services and privately-held nimble status will win those RFP's and all the others that a big, cold bank can't offer.

Do you need to staff up to grow?

The leadership team is in place. The company's president has been with the business for 16 years, she's a respected leader in the space. The general counsel, CTO, COO and others in the C-Suite have been there 5-10 years. They have been dreaming of the day when they could expand the service offering, tighten the ship and scale. With services like fund administration and fund accounting, staffing will be key to growth but overall expenses become fixed and revenue on AUM is the key driver with services like transfer agent.


Nicole Loftus of Fund Services Company

Nicole Loftus, a proven innovator joining the company president in this buyout/growth effort is a serial entrepreneur on a mission to celebrate registered funds and improve the fund services space. Prior to this mission, Nicole was the founder and CEO of Zorch, which disrupted the $20 billion advertising merchandise space with Nicole’s innovative tech platform. Nicole built the model, evangelized the supply chain, inspired a team and designed the technology, all while securing and maintaining exclusive contracts with clients like American Airlines, AT&T, Citigroup and State Farm. Nicole stepped down as CEO to launch SkinX. Zorch was recently sold to a PE firm, continues to grow and is poised to fulfill Nicole’s vision of being the industry leader. Under Nicole’s leadership, Zorch was recognized by Inc. Magazine (Inc. 500) as the 8th fastest growing company in the U.S. and the #1 woman-led company in the country. Zorch was ranked #1 on Crain’s Fast Fifty and Nicole one of Crain’s 40 Under 40.

Contact Nicole: n@popventure.com