Investment firm drives tax operational efficiency with KPMG Tax Managed Services
The unified approach of KPMG LLP delivers a comprehensive and cost-effective experience
Client
Global Investment Management Firm
Sector
Asset Management
Project
Tax Managed Services
A global investment management firm specializing in asset-based private markets faced significant tax operational challenges as its business evolved and it launched new products and executed large-scale transactions. The company needed a mutually aligned tax partner that could seamlessly scale while optimizing costs and efficiency. KPMG Tax Managed Services partnered with the firm to provide comprehensive tax-related services, offering a unified approach that enabled the firm to scale its tax capabilities in line while continuing to provide a high-quality investor experience.
Impact at a glance:
- Cost savings: The firm substantially reduced costs through its tax managed services relationship with KPMG.
- Team impact: The transition to KPMG provided career development opportunities for the firm’s tax team members while preserving institutional knowledge and connection to the overall business.
- Technology and data management: The firm enhanced tax data management, reporting and compliance with a leading suite of technology of KPMG.
- Governance structure: A proven governance framework continues to support smooth execution and relationship management as the firm grows.
Partnering with KPMG has transformed our tax function. The quality and consistency of our tax reporting has improved significantly, with our tax function really executing a seamless process, from deals through reporting. We've also seen substantial cost savings, which positively impacts our partners and investors.
Chief Operating Officer, Global Investment Management Firm
Business challenge
Multiple providers can’t deliver maximum value.
As the firm’s business expanded, relying on multiple tax providers—including other Big 4 firms—became increasingly inefficient. While its existing provider handled deal support and tax compliance, the services fell short of meeting the firm’s broader tax operational needs.
Over several years, KPMG built strong relationships with the firm’s operations and tax leaders and delivered tax services for new fund products. Eventually, KPMG took over roughly 25 percent of the firm’s tax work. Yet as the firm continued to evolve, it became clear that using multiple tax providers would limit the firm’s ability to meet its tax obligations efficiently and provide a consistent investor experience.
KPMG demonstrated its vision for a managed services model to consolidate the firm’s tax operations, showcasing its ability to deliver higher-quality services, enterprise-wide cost savings, and seamless integration. The firm’s leadership, including its COO, CFO, and Head of Tax, was quickly impressed by KPMG’s comprehensive tax capabilities, robust tech-enabled process, and existing mutual trust with the in-house team. They soon selected KPMG as the firm’s single tax managed servicespartner.
Listen, learn, assess
We do everything tax.
KPMG conducted a thorough assessment of the firm’s existing tax operations, identifying key areas for improvement and delivering actionable recommendations. As part of its solution, KPMG introduced a tax compliance platform that streamlined workflows, enhanced reporting accuracy, and provided real-time data access. This platform not only improved operational efficiency, but also increased transparency and reduced compliance risks.
The transition to the KPMG Tax Managed Services model was carefully managed to ensure a seamless and risk-calibrated process. KPMG provided a dedicated team of tax professionals to manage ongoing compliance and advisory services and facilitated the rebadging of the firm’s tax team. This approach ensured a smooth transition while preserving institutional knowledge and business continuity—empowering the firm with a more agile, efficient, and future-ready taxfunction.
Results
Tax function accomplishes more at lower cost.
- Optimizing the tax function: The firm significantly reduced costs by consolidating tax services under KPMG. It integrated front office deal activity into its reporting process, and it improved execution speed and efficiency. With KPMG guidance, the firm became better equipped to address tax issues around its new products and structures earlier in the process.
- Enhancing employee experience: Transitioning the firm’s tax team to KPMG created career growth opportunities. KPMG’s breadth and size provided a range of career paths, allowing rebadged employees to forge impactful, rewarding careers. This structure also strengthened the bench behind promoted individuals, allowing them to take on broader responsibilities.
- Governance as a foundation of long-term trust and success: Tax operations stay on track through regular meetings with the firm’s leadership team through a structured governance process, including monthly operating committee meetings and thrice-yearly steering committee meetings. This governance structure is essential to sustaining the true partnership of this managed service alliance and ensuring consistent, seamless execution.
Joining KPMG has been a positive career move for me and my team. We've had opportunities for growth and advancement—including a team member who was recently promoted. The support and resources available have made a real difference, and the alliance has been a win-win for everyone involved
Former Head of Tax at Client, Current Partner with KPMG
Driving value today and into the future
While the transition of tax services to KPMG under the client-KPMG alliance brought the immediate benefit of increased efficiency and effectiveness, it also supports the firm’s future stability and evolution.
As a trusted partner, KPMG has helped the firm scale efficiently, reduce costs, and enhance its compliance and investor experience. As the relationship continues to evolve, KPMG leverages the firm’s data to drive more proactive solutions that support the firm’s position in an increasingly complex industry.
Disclaimer: References to “partner,” “partnership,” or “alliance” in this document are intended to describe a collaborative working relationship and do not imply a legal partnership, joint venture, or strategic alliance agreement between the parties.
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Expect more and get more
A fully integrated, end-to-end tax operating model. A scalable, uniquely flexible suite of solutions. A technology-driven, people-centered long-term tax partner. A governance framework that ensures you maintain full visibility and oversight.
Start a conversation
Our team of tax managed services professionals are ready to work collaboratively to accelerate your tax function of tomorrow—today.
Christopher Yeaton
Partner, Tax Managed Services Practice Leader, KPMG US
Christopher Yeaton
Partner, Tax Managed Services Practice Leader, KPMG US