Stephen Giannone, Theorem Fund Services Co-Founder and Co-Managing Partner: “We measure our success by our clients’ satisfaction”

Theorem Fund Services is a multi-service fund administrator that offers a unique turn-key solution to investment managers that combines institutional-level technology with strong industry experience and a deep understanding of their clients’ needs and goals. Theorem Fund Services was founded on the belief that traditional fund administration platforms needed to evolve into a much more comprehensive multi-service offering. This enables an investment manager to maximize their service delivery by dramatically increasing fee efficiency and scalability.

Theorem Fund Services understands that our success depends entirely on the success of our clients and the ability to develop long-term client relationships that fully support our clients in their work.

In conversation with Stephen Giannone, Managing Partner, and Co-Founder of Theorem Fund Services

Q. What was the motivation behind starting Theorem Fund Services?

Our primary motivation behind launching Theorem Fund Services was to solve the growing disconnect we perceived in the private investment fund industry among clients in relations to their experiences, expectations, and innovation. While there was no shortage of fund launches or fund managers willing to work with new asset classes, we felt like fund administrators had become content competing for business by simply offering lower fees and not relying on high touch service and fresh technology. In an ideal world, it should be the other way around. While avoiding the overpayment for administration services is always a concern of astute fund managers, quoting low fees should not be the main value proposition a fund administrator brings to the table.

Q. What would you say are the top skills needed to be a successful CEO?

Vision and Focus

The very first step to building a great business plan and scalable business must be a clear vision. This is such an easy thing to say, yet sometimes a very difficult goal to achieve. You must find ideas that make your business unique and more competitive than your competitors.

At Theorem Fund Services, we knew that we wanted to present our clients with a clear, concise ‘vision’ on fees – and thus, we decided early on to use a flat fee model. Countless times over the years, we had heard from clients and prospects that fees were too variable and always increasing for receiving the same level of service. Theorem’s flat-fee model eliminates that uncertainty.

We also wanted to present a clear and concise ‘vision’ of our technology. Far too many fund administrators operate with an old presumption that they can impress their prospects by using the word ‘proprietary’ when discussing their technology. Contrary to this thinking, we wanted our clients to know that Theorem Fund Services is a fund administrator FIRST and ONLY and NOT a technology firm. We also communicate that terrific core accounting technology platforms exists today, and that Theorem (differing from our competitors) utilizes this technology to its fullest capability.

Additionally, we knew we wanted to present to all our clients with our ‘vision’ for their client servicing. It appeared to us that the larger a fund administrator grew, the more compartmentalized their service teams became and the more distant their clients felt as they had to deal with an abundance of contacts to resolve their concerns and questions. At Theorem Fund Services, our clients work with dedicated representatives that handle ALL their needs from inception to NAV delivery.

Focus

Another key attribute of an effective CEO is making sure that all of a company’s employees are ‘focused’ on the CEO’s vision. This is a never-ending yet incredibly rewarding aspect of what my partner and I do. Every business must maintain structure, meaning that people are ready to assume more responsibility and that people are motivated and believe that what they do is important and have a constant value. At Theorem Fund Services, we spare no expense in identifying high quality applicants that join our team, contribute immediately and believe that they can grow within our corporate structure and succeed.

Q. Are you planning to roll out any new services?

With the increase in the regulations surrounding financial transactions due to the rise in financial fraud and asset misappropriation, Theorem Fund Services is considering the expansion of our full service offering to include forensic accounting and internal audit services to its clients. This unique value proposition will provide our clients with access to certified and experienced professionals knowledgeable in this space. This will again be another service that our peers do not provide yet is so important to many of our clients.

Meet the leader behind the success of Theorem Fund Services

Stephen Giannone is the Managing Partner and Co-Founder of Theorem. Stephen has worked in the financial services industry since 1993 in a number of senior executive roles including management of global teams for top tier investment banks such as Bear Stearns and Deutsche Bank. In addition, Stephen has held Executive positions at global fund administration firms including Spectrum Global Fund Administration and Citadel Solutions. Stephen holds a Bachelor’s degree from the United States Naval Academy and honorably served as an officer in the US Navy, receiving numerous medals and awards.

“We are committed to partnering with our clients to ensure they receive the very best value combined with the highest quality service at the best price”