FTV Capital and StepStone Group have invested in Strata Fund Solutions. Financial terms weren’t announced. Strata, of Salt Lake City, is a fund service administrator for venture capital, private equity and other alternative asset managers and allocators.
Strata Fund Solutions Closes Significant Growth Equity Investment from FTV Capital
Best-in-Class Fund Administration Firm to Continue Investing in High Quality Service and Technology Platform for Institutional Investors
SALT LAKE CITY, UT – September 6, 2018 – Strata Fund Solutions (Strata), a leading fund service administrator for venture capital, private equity and other alternative asset managers and allocators, today announced a significant growth equity investment from FTV Capital. Strata will continue investing in technology, product and client-centric service enhancements to deliver highly customized client solutions. Demand for Strata’s solutions has accelerated given the rapid growth in new funds and assets under management in alternative asset classes, as well as increased efforts by firms to improve their institutional processes and reporting. Jared Broadbent, Darren Benson and Nathan Rees, Strata’s co-founders and managing partners, will continue their leadership of Strata and remain significant shareholders in the company. As part of the transaction, FTV Capital managing partner Brad Bernstein and partner Kyle Griswold will join the founders on the company’s board of directors. StepStone Group, a leading global private markets firm, participated in the transaction via investment funds it manages.
“Strata has become a leader in mission-critical fund services because our highly qualified people and flexible technology solutions combine to consistently exceed client expectations. We secured a partnership with FTV and StepStone to redouble this commitment to our clients as we enter our next phase of growth,” said Jared Broadbent, Darren Benson and Nathan Rees, co-founders and managing partners of Strata. “FTV’s extensive experience in supporting high-growth financial technology and services companies will bolster our capabilities and allow us to continue on our mission to deliver best-in-class, tailored services to each of our clients. StepStone’s leadership in the global private investment sector, deep domain expertise and broad network will help us better meet the increasingly sophisticated needs of our target client base.”
Founded in 2008, Strata’s experience and deep understanding of the alternative investment industry ensures the team consistently delivers meaningful value to clients beyond basic fund administration. Strata serves both the funds and the investors (including endowments, foundations and other investment allocators) in private equity, venture capital, debt, real estate, hedge funds, fund of funds, SPVs and managed accounts. Strata’s investment fund administration solutions include services such as portfolio and fund accounting, cash reconciliation reporting, financial and performance reporting, net asset value (NAV) calculation, investor services, treasury services, tax and regulatory compliance services, audit report preparation and auditor coordination. Strata’s portfolio administration solutions include portfolio maintenance, reconciliation and reporting for investors with large allocations to alternative investment asset classes looking to scale and enhance their back office capabilities.
“Strong secular trends, including significant capital inflows and an industry push to institutionalize fund administration, have driven the rapid growth in demand for Strata’s solutions,” said Brad Bernstein, FTV Capital managing partner. “The global alternative assets market is already over $10 trillion in AUM and is projected to double by 2025, providing a massive market opportunity for Strata’s unrivaled offering. The Strata team has continually impressed us with its track record of delivering high-quality services to some of the world’s most demanding, blue chip investors. We are thrilled to partner with Strata’s proven team to further expand the truly differentiated platform which they have built.”
Kyle Griswold, FTV Capital partner, added, “Our investment in Strata is an exciting continuation of our track record of partnering with leading wealth management and asset management fintech platforms such as Apex, Enfusion, InvestCloud and True Potential. Our experience and expertise in the sector will help Strata to execute on their long-term strategic growth initiatives.”
Macquarie Capital acted as exclusive financial advisor and Goodwin Procter provided legal counsel to Strata Fund Solutions. Kirkland & Ellis provided legal counsel to FTV Capital.
ABOUT STRATA FUND SOLUTIONS
Strata Fund Solutions is a leading provider of mission-critical middle- and back-office services to venture capital funds, private equity funds, other asset managers and asset allocators. Strata’s service offering includes traditional fund administration, shadow fund administration and data maintenance services. With nearly $70 billion of assets under administration, Strata has a long track record of supporting complex clients and delivering on high-value engagements. Founded in 2008 to fill an underserved need for high-quality fund services, Strata has established itself as a leading innovator in the alternative investment sector over the last decade. For more information, please visit www.stratafs.com.
ABOUT FTV CAPITAL
FTV Capital is a growth equity investment firm that has raised over $2.7 billion to invest in high-growth companies offering a range of innovative solutions in three sectors: enterprise technology & services, financial services, and payments & transaction processing. FTV’s experienced team leverages its domain expertise and proven track record in each of these sectors to help motivated management teams accelerate growth. FTV also provides companies with access to its Global Partner Network®, a group of the world’s leading enterprises and executives who have helped FTV portfolio companies for two decades. Founded in 1998, FTV Capital has invested in 105 portfolio companies including companies in the financial services ecosystem such as Apex Fund Services (acquired by Genstar), Aspire Financial Services, Enfusion Systems, Financial Engines (IPO, March 2010), IndexIQ (acquired by New York Life Investment Management), InvestCloud, PowerShares Capital Management (acquired by Invesco), Swan Global Investments, True Potential and VelocityShares (acquired by Janus Capital). FTV has offices in San Francisco and New York. For more information, please visit www.ftvcapital.com.
ABOUT STEPSTONE GROUP
StepStone is a global private markets firm providing customized investment and advisory solutions to some of the most sophisticated investors in the world. With $240 billion of total capital allocations, including $40 billion in assets under management, StepStone covers the spectrum of opportunities in private markets across the globe. StepStone prudently integrates fund investments, secondaries and co-investments across private equity, real estate, infrastructure and private debt to create solutions that are customized according to the objectives of any private markets investment program. For more information, please visit www.stepstoneglobal.com.