Strata Fund Solutions (Strata), a fund service administrator for venture capital, private equity and other alternative asset managers and allocators, has closed a significant growth equity investment from FTV Capital.
Strata will continue investing in technology, product and client-centric service enhancements to deliver highly customised client solutions. 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 Broadbent (pictured).
Darren Benson and Nathan Rees added, “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 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 institutionalise fund administration, have driven the rapid growth in demand for Strata’s solutions,” says Brad Bernstein, FTV Capital managing partner. “The global alternative assets market is already over USD10 trillion in AUM and is projected to double by 2025, providing a massive market opportunity for Strata’s unrivalled 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, adds: “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.
