May 2, 2023 – Issue 2
Your Preferred Return has arrived.
In this issue, we talk about wire fraud and the scams plaguing investment transactions, cap calls (and why they may be crap calls đź’©), and the changing preferences of limited partners.
Industry Insights
Scammers Target Wall Street in New Capital Call Fraud Schemes
by Agari
Capital Call Investment scams are the newest form of fraud that scammers are using to swindle Wall Street firms and their clients out of an average of $800,000 per incident.
Why does this matter?
⬆️ The number of wire transfers continues to increase year-over-year with 196 million wire transfers originated in 2022 reported by The Federal Reserve — that’s over 784,000 wire transfers per day!
✉️ BEC (Business Email Compromise) attacks doubled in 2022 and surpassed ransomware attacks according to Computer Weekly and data compiled from hundreds of incidents responded to by the Secureworks Counter Threat Unit (CTU).
🤯 The average payout targeted in capital call schemes is $809,000.
Therefore, it’s never been more important for firms to protect themselves, their capital, and their investors.
Product Updates
Capital Call Problems Solved
Do you have a capital call problem? Most do and don’t even know it. 💩
Creating, verifying, sending, managing, and reconciling capital calls is a painful process for Private Equity, Venture Capital, and all types of Investment Sponsors.
The current process wastes time, requires manual effort, and imposes unnecessary risks for both Investment Sponsors and their Investors.
How can you flush your capital call problems with Verivend? đźš˝
⏱️ Create and send all your capital calls in seconds, not hours or days.
đź”’ Protect your capital and investors through a secured, end-to-end encrypted platform and eliminate unnecessary risks, Business Email Compromise, and wire fraud.
📱 Give your investors a frictionless, “Amazon-like” one-click experience to securely fund all their investments.
đź‘€ Watch how you can send 60 capital calls in just 60 seconds with Verivend:
Market Perspectives
Investor Preferences are Changing
In a recent LinkedIn poll, we asked LPs “Would you prefer to pay per wire or a monthly subscription of $10 regardless of the number of wires sent?”
78% of LPs said that they would prefer to pay a monthly subscription, while only 22% said they prefer to pay per wire.
These results highlight several key insights into the evolution of LP preferences and expectations:
⚡️ LPs expect more “Amazon-like” experiences that are fast, responsive, and frictionless.
👍 There’s an appetite for LPs to pay for these better and more efficient experiences, which shifts costs away from GPs.
👀 GPs should be actively looking for technology that automates their back office while improving their investors’ experience.