Real estate fund management companies: lessons learned from the controls carried out by the AMF

"The AMF is sharpening its focus on asset and property management functions".

Real estate fund management companies (SGP) perform two main functions relating specifically to the real estate assets held by the funds: asset management (AM) and property management (PM). The activities of these functions are not defined by regulations and may, under certain conditions, be outsourced.

In 2019, the AMF carried out SPOT (Supervision of Operational and Thematic Practices) controls in order to identify good practices in this area. The lessons from SPOT checks have an educational objective and constitute an assessment, at a given point in time, of observed market practices.

The report produced by the AMF following these checks enables the organizational choices of the audited companies to be compared, but above all it is an excellent source for identifying best practices in:

In this document, we have highlighted the main findings and best practices resulting from these AMF controls.

These controls have enabled the AMF to better understand these AM and PM functions. We can therefore expect increased vigilance.

In addition, by retaining the outsourcing of real estate services as a priority supervision theme, the AMF recognizes the specificity of real estate fund management companies. We largely share this observation. Thus, the added value of our service offering is based on an excellent knowledge of the regulations, of course, but also of the real estate businesses - in particular AM and PM.

Download our summary by clicking on the link: Summary Akeance Consulting

Lockdown: revelation of a need for performance consulting

Most of us have been strongly and positively marked by the speed and efficiency of remote work in a massive way, in mid-March, the beginning of the lockdown. Of course, sometimes, the setting up of the system required a few days of adaptation, especially for remote computer access. But overall, this massive switch to telework mode is a success.

Nevertheless, the situation we are experiencing - between the new way of working and the economic crisis - has brought to light some concerns among our clients, which are more or less hidden, not known or not a priority.

Indeed, the first question we are often asked is whether "well-processed" companies have been more successful in the transition to remote work. And there is the rub… Operational performance seems to be closely linked to the quality of processes. A preconceived idea was to think that companies with Business Continuity Plans (BCP) were better equipped for lockdown. In fact, we have found that it is more likely that companies that have processed their activities AND that have been able to adapt their processes to the new modus operandi. These companies were able to adapt their processes very quickly. We can sometimes regret the lack of adaptation (a sales meeting with 18 people in video is not very effective, as well as the conservation of payment by check...). But some companies have noticed the lack of performance of their activity flow. This is very true for invoicing, where the absence of a clear process was lacking. It is also true in the management of suppliers and calls for tenders. As a result, Electronic Document Management (EDM) projects have emerged based on the experience of this period of lockdown.

Closer to financial performance, the absence or unreliability of cash flow forecasts (which are as much a matter of numbers as of process) has sometimes been particularly noticeable. The need for performance consulting in the area of cash flow forecasting is clearly apparent in this context.

The list of performance improvement projects that have emerged during the lockdown is far from being exhaustive! On a more positive note, another observation is newly shared by most of our clients on their projects. It is the ability to carry out studies or project management remotely where we thought face-to-face work was inevitable. This is as true for projects related to banking compliance as it is for the monitoring of a software package implementation.

We need to learn too from this lockdown to improve our own operational performance to better serve our customers.

Recruiting during lockdown?

The flexibility of our teams, the quality of our work, and the loyalty of our clients allowed Akeance Consulting to maintain its activity during the lockdown. Akeance Consulting did not resort to short-time work and did not impose any days off on its employees.

Nevertheless, the question of recruitment arose in mid-March: should the processes be continued or not? What about current candidates in process? Launch new processes? The answer was not long in coming! Of course, we continued our recruitment!

We maintained our principle of having candidates meet two pairs of consultants. And we experienced different situations.

A new consultant joined the team on March 23, in the middle of a lockdown! The videoconference allowed us to optimize this integration between Paris and the seaside, where the newcomer was lock downed. Other processes were carried out during this period. And we recruited, for some, exclusively from a distance. Others wanted to have a face-to-face interview with at least one or two collaborators. In short, the pace of the recruitment process was maintained.

In the end, we came out of this period of confinement with a dozen newcomers in May and June, which strengthened our teams by more than 10%.

Not only are we seeing a continuation of activity, but we are also seeing new priorities emerged from here and there with our clients. For example, projects concerning cash flow forecasts, EDM (electronic document management) projects and process reviews are emerging. All of these projects are the direct result of our clients' experience during this period of lockdown.

We are therefore expecting significant growth in activity in September. This is why we hope to reinforce our teams with a dozen additional collaborators for the beginning of September.

And if you are interested in applying, do not hesitate!

Akeance Consulting assists Bienprévoir.fr in the acquisition of Primaliance

Bienprévoir.fr, a major player in the field of brokerage, wealth management and advised distribution of financial investments performed the acquisition of Primaliance, previously owned by Foncia. Primaliance is a platform specialized in information, advice and distribution of shares in real estate investment companies and Real Estate Collective Investment Schemes.

This acquisition allows Bienprévoir.fr to complete its service offer for its customers. By acquiring a pioneer in the distribution of paper-based real estate, which offers its customers exhaustive information on this market and distributes a selection of more than 85 real estate investment companies and 14 Real Estate Collective Investment Schemes, directly or through life insurance, the Bienprévoir.fr group becomes a major player in the French savings market. Akeance Consulting assisted Bienprévoir.fr in this operation.

Beyond the obvious strategic relevance of the two entities' respective markets and the complementarity of their teams and cultures, Akeance Consulting naturally brought its expertise to the analysis of the acquisition target as such. But the added value of Akeance Consulting also lies in the importance given to the operational side. It is even the "trademark" of Akeance Consulting.

This means that operational synergies have been analyzed, measured, and put into perspective over time to identify short, medium, and long-term gains. These synergies are related to governance and support functions, as in any deal, but in this case they are largely due to each other's contribution in terms of "upstream" digital marketing. The new group's capacity to develop new clients is increased tenfold.

This also means that Akeance Consulting, even before the deal was finalized, worked with Bienprévoir.fr's founder-managers, Jonathan Levy and Vincent Cudkowicz, to develop a target organization for the new group and an integration path for the two entities. The shared objective is to create a new united team while respecting two clearly identified brands in the market.

About Bienprévoir.fr:

Bienprévoir.fr, a specialist in financial investments and wealth management advice, founded in 2008, manages nearly 230 million euros of savings and has 2,200 individual and corporate clients. Based in Paris, the company also has offices in Aix-en-Provence, Nantes, Lyon and Bordeaux.

Find out more: https://www.bienprevoir.fr/

About Primaliance:

Primaliance, founded in 2010 by Philippe Vergine and Benjamin Slomka, is the pioneer of French real estate brokerage portals specialized in the distribution of real estate investment companies and Real Estate Collective Investment Schemes units in open architecture. Primaliance distributes more than 85 real estate investment companies and 14 Real Estate Collective Investment Schemes. In 2019, the collection reached €63 million.

Find out more: https://www.primaliance.com/

About Akeance Consulting:

Akeance Consulting, founded in 2004, operates in the areas of operational strategy, including M&A activity for SMEs. The firm has about 60 consultants, mainly in Paris but also in Brussels. To contact us: [email protected]

How far can you telework?

Today, everyone teleworks, at least in the world of intellectual services. And everyone explains and rejoices at the ease with which the changeover has taken place, both quickly and efficiently. We even wonder why we didn't do it sooner! Yes, it is the constraint that creates adhesion! Moreover, at Akeance Consulting, we share this enthusiasm even if the nomadic nature of our business has contributed greatly to this adaptation.

And it has become so obvious that some companies have already made a definite organization with a mandatory telework period. One transportation service group has 2 days of mandatory telework. Another group has even decided 3 mandatory telework days. The ECB itself is said to be considering such a work organization. Of course, this so-called "compulsory" telework s accompanied by differentiation according to the different professions, modularity according to the populations within a same department, or a rotation of teams in the office.

Aren't all these "definitive" decisions a little fast?

Indeed, the drawbacks of remote work are starting to be heard. There are foreseeable downsides, such as the constraints of less equipment at home (computers, screens, printers, etc.) which already mean that traders or architects will need their office. Less expected drawbacks such as the difficulty to evaluate consultants through a computer screen. The opposite side of the table makes the exchanges less wise and fair. Or the contradictory exchange on an audit report / on a diagnosis is significantly more difficult during a videoconference.

More generally, isn't the flexibility and speed of reaction of a company due to the simple and effective arbitration of a multitude of mini-problems or problems on a daily basis by multi-functional teams? The famous: "Hello? Are you at your desk? Well, I'll come and see you! "which translates this efficiency, is it not necessary every day in the company?

Of course, this particular situation teaches us a lot about our ability to adapt, but we must be careful not to make experiences that would lack depth.

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