Jeff Gendel on The increasing importance of a strong operations in your private equity firm

The Private Equity Podcast

Introduction of Jeff Gendel

Jeff Gendel is the Principal for Business Development at Gen II Fund Services, LLC, a private equity fund administrator that caters to $850B+ of private capital. Jeff oversees the firm, which offers a unique platform of resources that enables clients to manage their operational infrastructure, financial reporting and investor communications.

What You Will Learn

The significance of the Operational Team in PE firms

Perception of Fundraising and Human Capital

Challenges on Reporting Demands

Trends and Areas Under Scrutiny

Scaling of PE Firms Post-COVID

Breakdown

[00:48] Getting to Know Jeff Gendel

[03:11] Common mistakes of PEP firms and solutions

[06:40] Trends and challenges PEP firms face

[08:42] Perception of fundraising

[12:42] Thoughts on human capital

[14:17] CFOs and operational teams in PEP firms

[18:04] Pain Points for PEs on reporting demands

[21:48] Trends and areas under scrutiny

[25:14] Challenges that impact PE firms to scale

[27:48] PE’s ability to scale post-COVID

[30:58] Likes and dislikes about PE

[33:08] How to get in touch with Jeff

The Operational Side

Jeff Gendel sits down with Alex to discuss the importance of the operational side of PE firms in the industry. He highlights how the team that operates behind the scenes should be valued and is very important, especially for it to reflect the performance of the firm. Many firms are now conducting risk analysis as a solution to address certain output issues, and he identifies operational risk analysis as one key factor. Adding emphasis to talent acquisition for the operational management team, Jeff mentions that even recruitment of talents becomes a competitive struggle for firms, as they all attempt to get the best set of teams for their operations. Retention is also another item he brings up as it is inevitable that people will come in and go from firms, and the firm’s ability to keep the exceptional talent they have on hand is something that needs to be valued.

Key Information to Scale

Jeff also cites the importance of information that circulates a firm. On top of having the right operational team, they also are in charge of giving the firm the necessary information needed for the firm to adapt to the fast-paced environment. He mentions that information gained by the firm such as returns, ability to attract capital, and the performance difference from competitors will help the operational team materialize the strategy they need to generate the next steps and objectives the firm will have to go for. With this, firms are able to scale their performance and goals accordingly and bring positive outputs to clients and investors. Despite the COVID pandemic, the PE industry is very adaptable. Having a team that can help a firm manoeuvre through the economic environment with the right information will help the organization on a macro-level.

Resources

Jeff Gendel’s Linkedin

Gen II Website