Private equity firms weather challenges through outsourcing

Prospects for private equity are a mix of good and bad. According to various industry pundits (most notably, Forbes), the industry is set to witness record-breaking relative allocations.

As an article on Forbes goes, “Private equity looks set for further records this year as new investors enter the asset category and as veterans continue to increase relative allocations.” At the same time, there are reports that fundraising, while predicted to continue to be strong, will slow for a bit. This can be understood in the context of the busy fundraising year that 2016 was: Private equity managers and the investors might be spending more time crafting strategies for their assets, to ensure maximum gains for their investments.

Moreover, the domain is also beset by challenges brought by changes and developments in the global economic situation. Geopolitically, Trump’s victory in the United States, the United Kingdom’s exit from the European Union, the wars in the Middle East, and the refugee crisis will all impact on the conditions for private equity fundraising and fund performance. In addition, China and India, and many other emerging markets in Asia – earlier viewed as markets of key growths, are bound to hit plateaus, which means decreased opportunities for new private equity endeavors.

And then there is the trend of growing regulation for the investments sector: Compliance has become a major source of operational demands, with policies regarding tax reporting, transparency, accountability, fund performance, and corporate governance, among other aspects, being drafted and enforced with much more enthusiasm than ever before.

Amid these challenges, private equity firms have since been receiving assistance from asset servicing firms. Providers of asset services promote efficiency in operations, enabling companies to operate with a lean organization. Costs for technology acquisition, human resource recruitment are kept at a minimum, as these are handed over to the third party that specializes in middle and back office operations, which cover accounting, data management, accounts reconciliation, shareholder reporting, and risk management.

As they take on these tedious day-to-day roles, managers then gain more time and company resources for the “meat” of private equity operations: Relating to clients, strategizing to achieve maximum returns for the assets under their care, scouting new high-potential ventures that could be a worthwhile investment, drafting lucrative deals, and forging more funding partnerships.

Indeed, asset services can be the private equity firms’ secret weapon in these tumultous time for the investment industry.

The hallmarks of a luxury real estate property in Hawaii

Blessed with the world’s most breathtaking beaches, lush forests, and majestic volcanoes, Hawaii draws vacationers from all over the world, with not a few eventually deciding to call it their home. For the most discerning of this lot, luxury real estateproperties are the only choice for their new home.

The new residents of Hawaii are set to experience the best of the Aloha State from their new lavish mansions, villas, or condominiums, which offer the following enviable features:

Stunning views. Hawaii’s elite relish the spectacular Hawaiian scenery from the floor-to-ceiling windows of their property, which is situated in a prime location. Because of this, every day would easily feel like a vacation. They would be treated to the lovely views of the Pacific Ocean, the white sand beaches, the verdant rolling hills, or exquisitely designed golf courses as soon as they wake up, and on lazy days, simply let the time pass while watching the sun rise on the horizon.

Solid structure. The best luxury real estate properties boast of good architecture. They have solid foundation and structure that are built especially to withstand the tropical climate on this side of the States. Especially for those in oceanfront locations, first-rate homes must be designed with the humidity, harsh sunlight, corrosive saline air, and very windy conditions in mind–high ceilings, sturdy choices for the materials (slate or stainless steel for roofing; granite, marble, or limestone, for the countertops and flooring; impact-rated glass for windows, etc.). In other words, the finest properties must be built to last, and will only tend to appreciate in value over the years.

Custom, high-end kitchens and furnishings. A sense of community and a love of food bind the people of Hawaii. In the weekends, many of them enjoy hosting gatherings of all kinds – from casual barbecue parties by the poolside for the whole family, to soiree garden parties, to elaborate adults-only sit-down dinners. To be able to host these events in the posh neighborhoods, it is quite important for the estates to be appointed with the best custom, high-end furnishings and cooking provisions: well-built cabinetry that’s meant to impress guests, a full wet bar, a spacious dining area, top-of-the-line kitchen appliances (refrigerator, freezer, and range), and an outdoor grill.

Learn more about the swanky island life as experienced in the luxury real estate neighborhoods of Big Island, Hawaii, through top-ranking real estate broker Harold Clarke.