You are here

Financial Services Success

Printer-friendly versionSend by email

Achieving Success for a Mutual Fund Client - the Big Picture

The financial services sector is arguably one of the most regulated industries in the world. As such, there is little room for an “out-of-the-box” audit approach and therefore it is harder to point to direct success – Tait Weller doesn’t impact e.g. a fund’s performance, capital inflows or capital outflows. However, Tait Weller can certainly point to indirect success under the heading of “going the extra mile”:

The place is Silicon Valley, Mecca for technology entrepreneurs and eager investors alike. The time is the late 1990s, during the halcyon, pre-dotcom bubble days. In that setting, one of our partners received a request for proposal from a mutual fund startup company headed by a leading technology expert and commentator, a regular on CNBC and CNN and widely quoted in publications such as Smart Money, Fortune and Forbes.

Tait Weller was the only non-“Big-Four” accounting firm to be included in the RFP process. Our partner flew out to meet with the management team, which in typical startup fashion took place in the portfolio manager’s garage. Seated on garden furniture around a picnic table, our partner didn’t just dive into the RFP response, and his first question was not about the fund.

Rather, he asked about the organizational structure of the management company. His first concern was with the principals; that they would be able to maximize their income potential while minimizing their tax liabilities upon the advisor becoming profitable.

As a result, Tait Weller was engaged as the fund’s auditor, and our first task was to help switch the fund company from a C-Corporation to an S-Corporation to avoid double taxation. S-Corp income flows through to the shareholders, especially important when considering that the company was to quickly grow to over eight billion dollars in assets under management.

One simple question earned Tait Weller a new, long-term client (now going on 15 years) by saving it millions of dollars in taxes. More importantly, the question is indicative of Tait Weller’s focus on the big picture – be knowledgeable about the trees but go the extra mile to understand the forest.

© 2016 Tait Weller, All Rights Reserved    Philadelphia, PA   215.979.8800    New York, NY   212.907.6496    Iselin, NJ   732.634.7940

Member of RussellBedford International