Traditional fund administration approaches frequently fail to provide the personalization, responsiveness and strategy alignment that contemporary asset managers want in a time when financial markets are changing quickly and customer expectations are still rising.  To overcome this issue, the two seasoned businessmen, Joseph A. Levato and Anthony D. Mascia, co-founded Essential Fund Services International (EFSI) in 2017.

EFSI’s assets under administration (AUA) have reached nearly $10 billion, up from around $8 billion at the end of 2023—reflecting an increase of approximately $1.5 billion over the past 18 months—which is proof of the firm’s strong customer-centric approach, which has driven high retention and referral rates.

We at Business Honor spoke with Managing Partner and CEO Joseph A. Levato to explore how EFSI is growing with accuracy while staying rooted in its service.

Interview Highlights

What inspired you to start EFSI? How has your original vision evolved as the company has scaled and the industry has shifted?

Emerging hedge fund managers were the foundation of EFSI’s business when the firm launched in 2017. Rather than aiming to solve a specific problem, EFSI identified an opportunity to support smaller, emerging asset managers by adopting a more client-centric approach to help them grow and manage their businesses. The company's current activities are still based on this idea. This customer-focused approach is well supported by EFSI's almost 100% client retention record since its founding and the significant percentage of new business that comes from referrals.

What are the core fund administration and advisory services that EFSI provides, and how have those offerings evolved over time?

EFSI's primary service is full-service fund administration, which it offers to asset managers running alternative investment funds in a variety of asset classes and sectors, such as venture capital, real estate, hedge funds, private equity and private debt.  These services are provided for funds that are based in important countries including the British Virgin Islands, the Cayman Islands, and the United States. EFSI also extends fund administration support to family offices and independent financial sponsors that invest directly rather than through pooled investment vehicles.

In addition to fund administration, EFSI offers management company accounting and shadow administration services. While these are natural extensions of the firm’s primary offering, they are also available as standalone solutions. Additionally, through its participation in the uncorrelated events franchise, EFSI offers capital introduction services which is a supplementary, if indirect, service made available by that planned alliance.

Are there any unique platforms, tools, or operational processes that EFSI offers exclusively to its clients or something that sets you apart from traditional fund administrators?

What distinguishes EFSI is its commitment to exceptional client service. At the time of the firm's inception, the typical dynamic between asset managers and their service providers across the board was largely transactional, with minimal importance on building a genuine relationship or aligning on long-term business growth objectives. EFSI recognized that fund administrators play a critical role in an asset manager’s back-office infrastructure and saw an opportunity to stand out by offering a more personalized, ‘white glove’ service—something notably absent in the smaller end of the market.

While building a strong relationship between fund administrator and asset manager requires active engagement from both sides, EFSI believes the duty lies initially with the service provider. EFSI takes responsibility for initiating and nurturing this relationship. This means investing the time to understand each client's working style, preferences, and strategic goals. Although the firm maintains a consistent service standard across its client base, which includes hedge funds, private equity and credit funds, family offices, and management companies, its approach is tailored to individual client needs. Some clients prefer minimal interaction, while others value frequent engagement.

How does EFSI manage portfolio data—such as equity/debt holdings, conversion ratios, payment schedules, and expiration dates—to ensure accurate, consistent valuation in line with each fund’s pricing policy?

To support its operations, EFSI depends on its technology provider and subscriptions to data services like Thomson Reuters. The company has had a long-standing partnership with its key technology partner since its founding, and they continue to provide frequent platform updates and improvements. The business of EFSI has continuously benefited from this continuous innovation. The company considers the partnership as a major factor in its capacity to serve its clients with high-quality goods and services, and it currently has no plans to switch providers.

How does EFSI customize its capital introduction services to fit the unique needs of different fund managers, and which types of funds or managers benefit the most from these offerings?

The business relationship between EFSI and the uncorrelated events franchise, which has locations in Miami, New York, Beverly Hills and Puerto Rico, houses the company's capital introduction program. Even though EFSI has been helping managers and allocators interact from its founding, this part of the company remained unstructured and informal until 2024.  The long-term goal had always included formalizing the program, and when Uncorrelated presented itself as a potential partner, it soon became evident that partnering with a well-known events brand was a smart and efficient approach to realize that goal.

How do your advisory and outsourced COO/CFO services integrate with fund administration?

Through a relationship with Fundviews Capital, a specialized middle- and back-office platform for asset managers, EFSI provides its middle-office product.  This partnership, which was established over the last three years, has significantly accelerated EFSI's expansion.

Clients can choose to work with Fundviews directly or through EFSI, and they can completely outsource important operational duties including cash and position reconciliation, daily P&L and performance reporting, trade matching and confirmation support, collateral and margin management and more.  A more customized, à la carte service model is an alternative.  Hedge fund customers may now get a complete operational offering for their funds and managed accounts without having to deal with the difficulty of managing various service providers due to this middle-office solution, which matches EFSI's broader ecosystem strategy.

Looking ahead, what are EFSI’s strategic priorities or upcoming initiatives over the next two years to better serve fund managers and investors and stay ahead in the evolving fund administration and advisory landscape?

There aren't any specific projects planned just yet because EFSI takes a flexible day-by-day approach to its work. This way of thinking allows the company to stay receptive to any new developments or teamwork opportunities that present themselves. EFSI is frequently among the first to learn about new opportunities because of its deep combination within the ecosystem of the private funds industry.

Although going global is probably a sensible move in the future, there is no deadline or sense of urgency associated with it. Currently, expanding its core business and gaining new clients continue to be the firm's top priorities.

 Joseph A. Levato | Managing Partner

Joseph A. Levato serves as Managing Partner at Essential Fund Services International, LLC (EFSI). Before founding EFSI, he spent seven years at Advanced Fund Administration (AFA), where he was Director and Head of North America Operations as well as Chief Financial Officer. Currently, Joseph is a managing member at Pycnocline, LLC, a consulting and private merchant bank that acts as the private equity acquisition arm of its London affiliate, Halocline Private. Joseph holds a Bachelor of Science in Accounting and Finance from Miami University, Oxford, Ohio, and earned an MBA in Corporate Finance from Fordham University. His extensive experience and process-driven approach help EFSI provide clients worldwide with differentiated fund and business administration services.

Anthony D. Mascia | Co-Founder & Managing Member

Anthony D. Mascia is the Co-Founder and Managing Member of EFSI. Mr. Mascia brings over 20 years of experience in the alternative investment and private funds sector. He oversees EFSI’s front office operations, which encompass account management, business development, customer service, marketing, and sales. Before co-founding EFSI with Mr. Levato, Mr. Mascia worked as a consultant for various alternative investment firms and established an independent brokerage focused on alternative investment strategies, operating through a partnership with MF Global from 2008 to 2011. He began his career in 1999 as a trader and member of the New York Board of Trade, spending nearly ten years developing a commodity brokerage business.

“For EFSI, white glove service is not about constant communication, but it’s about responsiveness and delivering precisely what each client needs and when they need it.”