For CFOs who need to keep pace with the demands of regulators and investors, manage administrative costs, and carve out time for more strategic activities, outsourcing fund administration is an option worth exploring.
According to eVestment research, the size of alternative assets under the administration of a third party grew by $2.5B in five years. Of all the duties the back office must perform, fund administration has changed the most over the past 10 or 15 years.
Many firms begin to consider outsourced solutions only when performance or resourcing issues begin to impact the firm negatively—an approach that can result in a decision made under pressure.
Taking a proactive approach and recognizing emerging issues before they become critical gives General Partners time to evaluate their options thoroughly and make a more informed decision.