The alternative asset class as a whole continues to focus on technology as a means of automating transactional activities, using data more effectively, strengthening compliance, and providing more detailed, customized reporting.
For debt funds, the need for an investment in technology may be even more urgent because of their dynamic structure and additional complexity. Relying on legacy systems or manual processes can result in spiraling administrative costs for resourceintensive debt servicing.
45% of managers with debt funds cite the limitations of their
existing technology to track loans as an operational challenge.
Close to half of managers with debt funds (45%) cite the limitations of their existing technology to track loans as an operational challenge. In fact, technology is one of the top three most prevalent operational challenges for this fund type.
However, the costs of implementing and maintaining market-leading technology can be unrealistic for a small firm or even a mid-sized firm. In these cases, partnering with the right 3rd party fund administrator enables debt fund managers to benefit from an integrated system of accounting, administration, reporting, and debt management technologies without shouldering the costs and maintenance of an in-house solution.
To learn more about the benefits of technology for debt fund managers including a technology checklist read this white paper on Debt Fund Administration.
 AIMA, Enhancing the Loan Administration Function: Marrying Capacity and Customisation, 2018.