Management company finance that shows what the Firm really earns, takes owner economics out of spreadsheets, and is ready for an SEC exam or a GP stake sale.
Hard to say why, but they fall behind as AUM grows
FRE, Firm vs. Fund and controllable costs are unclear
Carry, distributions and owner tax live in spreadsheets
PE finance talent is scarce outside the hubs
“Is the management company run as tightly as the Funds?”
A disciplined monthly close for the management company, with costs split correctly between Firm and Funds.
“What did the Firm really earn this year?”
Distributable earnings, fee-related earnings and ENI, reported consistently from integrated systems rather than Excel.
“Which costs can we actually control?”
Budgets and forecasts by strategy that show where the Firm makes money and which costs are within its control.
“Does the Firm have the cash and capital it needs?”
Cash, owner distributions and Firm-level facilities planned together, not managed in isolation.
“Would we be ready for an SEC exam tomorrow?”
Documented processes, carry tracked by partner and Fund, and owner tax reporting overseen with your advisers.
“Could we support a GP stake sale or a Firm-level raise?”
A corporate model that buyers and lenders can rely on, and finance leadership through the transaction.
Scale is hard to reach in-house, and more GPs are turning to flexible support.
people per $1B of AUM at smaller GPs, against 9 at $5–10B Firms
of GPs rank hiring and keeping skilled people as their top three-year concern
of GPs plan to expand outsourcing to drive growth
Sources: McKinsey, How private equity is tackling operational complexity, 2018 (24 GPs; total staff, not back office only); CSC, Future Private Capital CFO 2025 (300 GPs globally; CSC provides fund services).
AUM after spinning out of a $70B+ manager; back office from 5 to 40 people
AUM today at PE Firms where we built finance teams from scratch
Connected systems from the Fund investment committee to Firm ENI, replacing Excel
Subscription, NAV and hybrid facilities; Firm-level private debt and GP stake sales
Targeted consulting on a specific issue or review
Defined projects such as valuation, systems or controls documentation
Fractional senior or specialist roles inside your team
We run functions such as reporting, FP&A and close
We design it, hire it and run it until your team takes over
Talk it through with Pritpal Aujla and see where we can help.
Three Strand Partners