We are so excited for this first release of Vector’s quarterly newsletter! As we reflect back on the first half of the year, we are unbelievably grateful for the partnerships we’ve forged, the team we are building, and the clients that have put their trust in us.
This newsletter is designed to provide resources and insights into the ever-changing alternative investment industry. Here we will share updates and sneak peaks of what we are working on, give recommendations on key players to know in the space, and general bits and bobs related to the private markets space.
Vector started in 2021, emboldened with a vision to build a fund administration service and platform that reduces the friction between alternative investment stakeholders. We started taking on clients in July, albeit in an “undercover” fashion – operating only through our existing network and referrals. Then, in early February 2022, we launched our website. Since then, we have been hard at work forging connections, speaking with fund managers and service providers, and building our team!
If you have evaluated fund administrators recently, you are well aware of the “spectrum” that exists in fund administration offerings. On one end of the spectrum, you have people-centric, “white-glove” professional services firms with lackluster, off-the-shelf technology solutions, and on the other end, you have flashy technology offerings that seek to productize much of the existing fund administration processes. The “people” side of the industry is plagued by frequent turnover, exacerbated by “old and tired” business models, massive amounts of consolidation in the industry, and a broad push to low-cost labor – diminishing the value for GPs interested in that side of the spectrum. On the technology-centric side, the software is not purpose-built for partnership accounting by industry professionals, and the “service” that sits behind it leaves much to be desired.
That spectrum is broken. Vector is built to provide even better people-centric services. We think that technology built to replace top-talent CPAs and accountants is inherently flawed, and the key is to build technology that enhances the service-first model.
By focusing on workflow engineering through proprietary software, we have effectively insulated ourselves and our clients from constant turnover and inability to deliver quality services. We are early in our lifecycle, so our reputation is more important than anything else – and that reverberates through the client experience. A long-term partnership and happy, referenceable clients is our top goal.
Today, Vector supports 52+ investment vehicles representing more than $1.25 billion in total commitments. Our amazing clients invest in diverse strategies: technology, impact, healthcare, digital assets, real estate, and more. Our headcount is growing quickly, and we are so thrilled to have brought on several new hires in Q1, including Jason Dong, Margo Cogliano, Jeffrey Wasilewski, Justin Thorn, Emma Summers and Kyle Raskin.
We are heavily focused on being valuable contributors to the alternative investment industry as a whole. We recognize that fund managers need good coaches, partners who can truly help (not just email deliverables), and outstanding support – so they can focus on investing and fundraising. Like the rest of the content we publish, we hope this newsletter, and future iterations, will be a value-add for our clients, partners, peers, and the ecosystem as a whole.
– Molly Yakubian, Chief Operating Officer
Like the name Vector, Valence is a play on a physics and chemistry concept. Valence electrons bond atoms together to create molecules that are greater than the sum of all parts. This concept is embedded in our platform – our approach is centered around a desire to cater to the many stakeholders in the alternative investment industry to provide a superior, frictionless experience for all parties.
Valence, powered by Vector, is our proprietary, cloud-based platform that is revolutionizing fund administration. Created by industry experts, our platform is shifting the way teams work by vastly improving fund accounting processes. Our goal is to deliver an intuitive user interface with intelligent analytics that help our users make better decisions faster, which ultimately leads to better outcomes for their investors and firms alike.
Valence was designed to:
We have a lot to be excited about! We’re very proud of our product and the feedback that we’ve received so far. We’ve been working hard to make sure that every aspect of our application is perfect before launching. We’ve made great progress, and we look forward to the next few months.
This roadmap is just the tip of the iceberg in terms of the future vision. The Valence team has many more exciting pieces of functionality in the works. Be on the lookout for future announcements! Follow us on LinkedIn and Twitter to stay up to date on the latest!
Meet Kyle Gross, Director – Tech & Venture at First Republic Bank. Kyle and his team are experts in meeting the unique and individual banking needs of venture capital and private equity firms. Reach out to Kyle if you need capital call lines and partner loans, online cash management, business escrow, custody, brokerage and foreign exchange services for your fund.
Meet Lindsay Chamings, Managing Director at Andersen. For all things tax, Lindsay and her team advise venture capital funds of all sizes and ages – whether you’re launching fund I or fund XV. From the beginning stages of a fund and management company, down to planning for cash and stock distributions and exits, Lindsay and her team are the way to go if you are looking for experts in this space.
Meet Nicole Fuller, Director of Client Relations at Strut Consulting. Nicole is a resident fund structure and VC tech stack expert who knows the emerging manager landscape like the back of her hand. Nicole and her team provide operational expertise to funds of all shapes and sizes in U.S. and beyond. If you are looking for support to institutionalize your back-office, this is the group for you.
Are you a service provider in the VC/PE space? We’d love to get to know you better! Email hello@vectorais.com. We are always looking to expand our network and connect managers to quality providers in the space!
If you made it this far, kudos to you (this was a long one), and THANK YOU for your support. We are committed to creating value for the community, so would love to hear any and all feedback on the content of this newsletter, the needs of managers and investors or other stakeholders in the space, and our approach to modernizing fund administration!
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