By Hank Boggio, Chief Revenue Officer of PEF Services LLC

While proven processes, expertise, and fair pricing structures are key elements of a successful partnership with a fund administrator, technology is the elephant in the room. Without an ongoing investment in technology, no fund administrator, no matter how seasoned and competent, can support their clients effectively.

Technology As An Effective Enabler

With the right technology, fund administrators can manage costs by automating key elements of the process, improve compliance by enhancing transparency, and improve service levels to both the firm’s back office and their investors by maintaining secure, self-service information portals that meet the need for fresh, accessible data and documentation.

Fund administrators with advanced technology platforms are able to migrate your historical data into their applications using automated processes, making the transition to a new fund administrator a smoother, more efficient process. This historical data must be migrated seamlessly to enable the firm to report IRRs and other metrics.

However, technology adoption is uneven among fund administrators. According to “A 2020 Vision of Fund Administration,” a survey of 57 global fund operations executives, 40% of fund administrators anticipate significant changes to their systems and technology between now and 2020 in order to cope with regulatory demands.1 And a full 27% currently have no data analysis tools in place.


40% of fund administrators anticipate significant changes

to their systems and technology between now and 2020.


General Partners need to bring greater rigor to the task of evaluating the technological capabilities of their service partners so that they can choose a partner that invests in the technology platforms and proficiencies that help fund managers gain a competitive edge. This includes ensuring that the fund administrator has a formal business continuity and disaster recovery plan in place that enables them to minimize service interruptions in the event of a disaster or a technology breach.

If you plan to switch fund administrators, conduct a detailed technology demo as part of the evaluation process. Look for ease of use, ensure that all required data points are available, and make sure that the data is accessible in a format that fits the way your firm works, whether that’s an online portal, an Excel export, or some other method.

Read the white paper entitled ‘Making The Switch’ to learn the ways in which General Partners can make a more informed, successful choice the second time around. The paper includes a helpful checklist for General Partners and their fund administrators to smooth the transition.

[1] FIS, A 2020 Vision of Fund Administration, 2016.