St. Cloud Capital Continues to Identify KPIs as Markets Continue to Change

CFO, Mr. James Hays Attends the LPGP CFO/COO Private Debt Conference

December 10th, 2019

Mr. James Hays, Chief Financial Officer and Chief Compliance Officer at St. Cloud Capital, attends conferences nationwide to keep updated on the direct lending industry. On October 23rd, 2019, Mr. Hays attended the LPGP CFO/COO Private Debt Conference in Chicago, IL. LPGP Connect explores the complex roles of CFOs and COOs in managing private debt funds. The objective of the conference was to look closely at how investment groups can adapt to the ever-challenging needs of the marketplace and excel in delivering operational excellence. From talks about benchmarking funds’ performance to technological advancement and its impact on day-to-day back-office operations at private equity firms, Mr. Hays participated in active conversations with likeminded C-suite executives from the industry.

When asked about his motivation to attend this conference, Mr. Hays noted “I felt this was an important way to stay ahead of the curve while networking with like-minded colleagues in the industry.”  He added that “The CFO/COO Private Debt conference is a great gathering, providing high-level updates regarding the industry, current and upcoming regulations, and best practices. I was able to take away some valuable insights that I hope to build into St. Cloud’s operations.” Kacy Rozelle, a Managing Partner at St. Cloud, pointed out that “having James participate with others in similar roles at a variety of direct lending firms should help us to maintain best-in-class financial controls, processes and LP reporting.”

Mr. Hays found discussions about the Private Debt Funds: Reports, Disclosures and KPIs, and the CFO/COO Panel: How to Run a Private Debt Fund to be most beneficial in his role as a CFO. Mr. Hays compared what St. Cloud discloses, reports and uses as Key Performance Indicators (KPIs) to other private equity and direct lending firms. KPIs are important metrics used in financial industry to measure the success of the investment. According to Timothy Spangler, in his Forbes article, “the key concept in measuring performance in private equity funds is the internal rate of return which is the net return earned by investors over a particular period, calculated on the basis of cash flows to and from investors, after the deduction of all fees, including carried interest.” In addition, Mr. Hays attended conference sessions to see if there are any procedures or operational guidelines other financial institutions utilize that would be beneficial for St. Cloud to adopt.