Support Firm with More than $50 Billion in AUM
Background & Challenges
Background & Challenges
A leading alternative investment firm is improving its cost allocation processes and related management reporting to view profitability information along multiple dimensions, (i.e., strategy, fund, product, and client views).
The firm needed a streamlined cost allocations and profitability model to enable the firm to identify consumption and ownership of costs.
The firm did not have a logical approach to identifying costs it should improve that it is over and under consuming in an effort to improve firm margins.
Everstell Solution
Everstell Solution
Everstell developed a methodology for revenue attribution, cost allocations, and related management reporting (both at the expense and profitability levels).
By identifying current processes and sourcing data for cost allocations from the Management Company to its various funds, Everstell reduced processing times of allocation for expenses from a couple of weeks to hours, including providing a streamlined methodology to accommodate business and data changes.
Everstell also enabled the firm to redesign its general ledger center hierarchy and structure, which increased accountability and transparency across reporting levels within the organization.
Benefits
Benefits
The Everstell profitability model Improved firm margins by 5% over the course of 12 months.
Quickly developed a strategic approach for cost management decisions to identify opportunities for managed services, outsourcing, and cost takeout.
Enhanced center hierarchy and reporting structure to improve reporting and alignment.
Strategy / Investment Focus
Alternative investment firm focusing on credit and real estate strategies
Support Areas
Redesign of management reporting and cost allocations for fund expenses along various reporting dimensions
Assets Under Management
Greater than $50 Billion in AUM