Business Service: Outsourced CFO services for established managers

Business Service

Outsourced CFO services for established managers

Challenge

Due to a challenging fundraising environment in the energy sector, a $3 billion client changed their investment strategy. This resulted in lower fund management fees and a firmwide effort to minimize expenses, including a reduction in headcount. It was determined that a full-time CFO was no longer needed and that the in-house fund accounting function was not cost efficient.

Solution

Petra hired the client’s CFO as a permanent employee and Petra was also engaged to be their fund administrator. This allowed the client to continue to access the CFO’s institutional knowledge in a more limited capacity while also reducing the overall operational cost burden to the client.

Key Results

• The client experienced a significant amount of savings by reducing the compensation cost of their CFO and fund administration while maintaining the quality of service.
• Petra services allowed the client to adjust their strategic financial support based on current needs.
• The client was able to concentrate their efforts on essential activities such as fundraising, team building, and growing investments in their portfolio companies.