Certified public account Kate Merli serves as the chief financial officer of the New York City-based investment and private equity firm New 2nd Capital. She brings a decade of experience in accounting and fund management to her position, which includes extensive work with vendors. Kate Merli and the New 2nd Capital team concentrate on investing in and developing high-potential mid-market companies through customized secondary transactions based on the special situations each potential investment may encounter.While private equity firms often make new investments through primary transactions, acquired through the issuing company as the seller, they may also find it advantageous to build up value through pursuing secondary transactions. In a secondary transaction, an equity firm purchases interest in a fund from an already-existing investor. The price of these assets is negotiated directly between buyer and seller, and the buyer typically agrees to take on any currently-unfunded financial obligations from the seller. The company whose assets are being exchanged typically plays no part in the deal.Transactions in the secondary capital market can become particularly attractive during periods of market turbulence. In this case, a rush for liquidity often drives many of a fund’s original investors to cash out their interests in a variety of products that may include endowment and pension funds, as well as funds of funds.
Possessing more than a decade of financial experience, Kate Merli serves as the CFO of New 2nd Capital, a private equity fund based in New York City. Over the course of her career, Kate Merli has gained extensive experience in private equity fund matters.Private equity funds, investment vehicles composed of investors and the funds they are investing in private companies, have two common fees: management fees and performance fees. Management fees are collected to cover the operating expenses of a private equity firm. These fees ensure that fund managers are compensated for their time and expertise. While the exact structure of a management fee depends on each fund’s needs, the average fee is 1.5 percent to 2 percent of the total asset amount. Management fees are assessed regardless of how investments in the fund perform.Conversely, the performance fee is directly affected by how private equity funds perform. If the fund experiences only losses, performance fees are not charged that year. Many private equity funds adhere to the “2 and 20” fee rule in which a 2-percent management fee and a 20-percent performance fee are charged on the fund’s asset value and profits each year.
New York City-based financial executive Kate Merli provides leadership to New 2nd Capital as the firm’s chief financial officer. Away from her work, Kate Merli stays active by hiking.During any type of physical activity, your heart pumps faster to deliver the blood and oxygen your muscles need to work efficiently. Without enough oxygen, your muscles feel tired. This often occurs if you aren’t breathing properly when hiking.To avoid this issue, decide whether breathing through your nose or your mouth works best for you. Typically, inhaling through the mouth and exhaling through the nose is the most efficient way of getting the air your body needs. However, breathing in through the nose and out through the mouth filters small bugs and particles from the air.After you choose your preferred breathing method, focus on breathing at a steady rate throughout your hike. To keep your breathing steady, time it to match your footsteps. Finding the right breathing speed is individual and depends on your personal fitness level. If you are running out of breath as you hike, consider slowing your pace.
Employed at New 2nd Capital in New York City, Kate Merli is responsible for tracking investment data, managing the annual financial review process, and overseeing providers of external services. In her free time, Kate Merli enjoys watching New England Patriots football. During the 2018 football season, the New England Patriots Charitable Foundation and the Kraft company hosted a marathon and half marathon in Gillette Stadium. The race served as a Boston Marathon qualifying event, the only one held entirely inside an NFL stadium, and it raised more than $70,000 for the Patriots Foundation to serve the homeless. In December 2018, the Patriots Foundation used the funds from the marathon to buy more than 700 water-resistant winter coats. Specially made to transform into sleeping bags, the “Empowerment Coats” were designed by a young entrepreneur named Veronika Scott who wanted to help people facing life on the streets. Ms. Scott started by passing out the coats herself in Detroit. She later began hiring men and women who are homeless to make more coats. For the past five years, the Patriots Foundation has helped distribute Ms. Scott’s Empowerment Coats to homeless people across New England.
