Firms poised to drive value for investors through clear alignment and understanding of compensation and rewards
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FAIRFAX, Va., August 2nd, 2022 – PFA Solutions, a leading provider of specialized alternative investment technology solutions, announced today that twelve new asset managers have selected PFA’s FirmView® software platform in the first half of 2022. FirmView will support management and reporting related to internal employee and partner carried interest allocations, vesting arrangements, and compensation programs.
In addition to current customers, new firms joining the platform include 137 Ventures and 8VC along with ten additional leading private equity and venture capital firms ranging in size between $1.5 billion to more than $80 billion in assets under management.
“Private capital leaders firmly believe that growth is optimized and differentiated when team members are empowered by rewards commensurate with their contributions and future deferred compensation analytics are clear and accessible,” said PFA Solutions Co-founder and Managing Partner, Richard Change. “Along with rewarding employees for their business contributions, we have seen a surge in private capital firms seeking out digital solutions to improve the administration of carried interest and compensation plans and the associated reporting to employees. As the alternative investment industry has grown significantly, so has the advancement of their operations, including the compensation function and associated processes. We are excited to continue to be a trusted partner working with our existing client base and the new clients implementing FirmView.”
“Our talent is at the heart of who we are and our success as an organization,” said Andrew Hansen from 137 Ventures. “Therefore, we selected the PFA FirmView platform as the solution to manage this highly sensitive data and produce comprehensive statements to our employees. Our goal is to provide best-in-class reporting to employees and partners and have at-your-finger-tips management analytics to align talent and value creation. We strive to manage this data in a secure method and provide optimal carried interest and compensation insights to all our team members.”
Leading private capital firms are improving their internal operations and are actively seeking opportunities to transition from error-prone spreadsheets to online solutions, such as FirmView to manage their employee incentive programs. Many private capital firms have various complexities related to their incentive plans and changes over time due to new employee awards, promotions, and forfeitures of carried interest awards. As a significant portion of the workforce remains remote, private capital firms are seeking platforms and service providers to deliver push-button reporting and analytics directly to employees.
FirmView is a specialized platform that allows private capital firms to manage carried interest and standard compensation data in a single solution. The platform continues to evolve as new clients are onboarded to address the many variations across the industry relating to carried interest allocations and promotion and forfeiture scenarios, and various vesting arrangements. There is also a movement to aggregate profit sharing plans – such as carried interest – along with other compensation arrangement such as salaries, bonuses, benefits, and co-investments where employees invest their own personal capital into funds.
“While there are many unknown market factors related to inflation and a forecasted recession, we believe that the private capital market will continue to thrive long-term,” said PFA Solutions VP of Product Strategy and Client Delivery, Ryan Burger. “While many firms will face headwinds, we are seeing a continued investment in talent, technology, and operational improvement across the alternative investment industry. We are honored to have a hand in providing a solution that directly impacts our clients’ most valuable asset—their people. We are looking forward to working with this new set of clients along with our existing client base”
About PFA’s FirmView® Product Suite
FirmView® is a comprehensive carried interest and compensation management platform supporting fund level, deal-by-deal, various types of vesting arrangements, employee capital co-investments, salary, bonuses, and other compensation arrangements. PFA Solutions is focused on a critical point of leverage for differentiated private capital success.
The powerful private equity compensation software delivers features to help manage the full life cycle of each allocation profile including:
- GP carry participant allocation changes and vesting
- Total compensation management and reporting
- Forecasting and distribution notice production
- Employee portal for data and document access