Improving the K-1 Statement Process

With the start of each new year private equity firms heave a collective sigh as tax season, and the arduous task of generating K-1 statements begins. The hustle to prepare and send hundreds of individual statements is often slowed by the use of manual and paper-based methods to create and distribute these documents.

For private equity firms sending hard copies to clients, the K-1 statement process can take weeks, if not months, to complete, and generate a hefty price tag in in-house labor, materials and postage. 

Many firms have begun outsourcing the process. While this does relieve staff from having to manage the mailing internally, outsourcing services typically add more time and cost to get the statements in the mail.

Various firms have turned to email as a faster and less costly distribution method. However, a wave of new regulations and rules directed towards protecting investors and the confidentiality of their personal information has singled out the use of email, and many fund-run websites, as unsecure distribution methods.

16 October 2014