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The asset management sector is undergoing profound changes that will redefine the business. From the rapidly accelerating digital transformation of the industry and the growing interest in digital assets, to navigating heightened regulation and environmental, social and governance (ESG) practices, the industry is experiencing a significant shift. Businesses will need to adapt to keep up with the ever-changing environment and prepare for the challenges ahead.
From business development companies and small business investment companies, to commodity pools, hedge funds, private equity funds and venture capital, to registered investment advisors and regulated investment companies, each sector is facing unique challenges. The need to invest in technology, increase efficiencies and work with digital assets will be critical for growth. RSM asset management professionals understand the complexities of the industry and the key issues across auditing, accounting, tax, regulatory compliance and consulting. Our industry focus enables us to understand your business operations, embrace opportunities and address challenges—all while helping to mitigate risk and support growth.
Serving the following sectors:
Business development companies
BDCs face a variety of questions. Are your valuations accurate and supportable? Are you calculating management and incentive fees correctly? With intensifying focus from the Securities and Exchange Commission, are you effectively managing your regulatory risks? What about registered investment company status and taxes? RSM can help address these questions and more, drawing on our deep experience advising investment vehicles including BDCs, private equity funds and small business investment company (SBIC) funds.
As hedge fund managers work the volatile market in their favor, many companies are struggling through supply and demand shocks, workforce changes, and liquidity issues, all of which will result in lost earnings affecting hedge fund returns, particularly those that hold investments in the real economy. With experience handling more than 2,000 investment funds, RSM can address the complex operational, financial reporting, tax and compliance issues facing the industry.
Private equity funds
The changing landscape of the financial market over the last several years has led to regulations that are more stringent on both the local and federal level. Private equity investing is now mainstream in alternative investments, and the fundraising environment is increasingly more competitive. Other challenges facing the industry include revised fee structures, changing tax regulations, global investing and competitive deal flows, as well as heightened regulations around registered investment advisor compliance, fees, valuations and performance reporting. Our private equity professionals understand the issues and challenges throughout the fund life cycle and can help you navigate each stage from fund structuring and due diligence, all the way to maximizing portfolio value and exit.
SBIC fund services
SBIC funds can be an attractive source of low-cost capital to invest in lower middle market businesses. Whether a private equity fund is considering the SBIC program for the first time or has already received funding from the Small Business Administration, the issues associated with running an SBIC fund can draw on your time and take resources away from activities that generate profits. Our experience provides our clients with the knowledge they need to manage their businesses within this regulatory environment.
Registered investment advisors
With the acceleration of alternative data and remote work, to changing deals terms and environmental, social and governance investing, RIAs are dealing with an ever-changing landscape. We understand the challenges facing RIAs, and can bring our experience to help address the complex tax, accounting or consulting issues affecting the industry.
Regulated investment companies
Regulated investment companies, including mutual funds, exchange traded funds, closed-end funds, interval funds and other similar investment vehicles, are constrained in selecting a provider because of potential independence issues and the need to engage an internationally recognized firm. Investment managers also must deal with the ever-changing regulatory environment, new accounting rules and tax laws, digital transformation, increased competition, expense ratio and return pressures, and the rise of both passive and sustainable investing. RSM understands the issues and challenges with complex investment structures and can provide a broad range of audit, tax and consulting services to meet your needs.
As venture capital funds manage the impacts of the market environment, many are taking steps to protect their portfolios, focus on efficiencies and strengthen their business. From fundraising challenges and valuation issues, to technological investments and the need for data-driven insights, RSM’s venture capital professionals understand the unique challenges affecting business operations, and can help assess the complexities associated with your audit, tax and consulting needs.