Report provides guide to evaluating private equity fund administration outsourcing options
WEST ORANGE, NJ (June 4, 2019)—PEF Services, a leading fund administrator for Alternative Investment Managers, today announced the release of a new white paper entitled “Fund Administration Outsourcing – A Guide to Evaluating the Options and Making the Right Decision.” As the alternatives industry has matured, expectations among investors and regulators have grown, requiring General Partners to develop new capabilities and efficiencies in order to collect, manage, and report on a greater range of fund data than ever before.
Once a relatively simple task, fund administration has become a resource intensive and complex activity requiring a higher headcount, greater expertise, and more sophisticated technologies than ever before.
Drawing on PEF’s extensive fund administration expertise and findings from comprehensive research, this white paper examines some of the top considerations informing the decision of Funds and General Partnerships to outsource fund administration, provides key criteria to apply to the task of selecting a fund administrator, and provides useful checklists for evaluating the capabilities and expertise of shortlisted third party fund administration firms. It covers:
- A review of the five key issues that motivate the decision to outsource fund administration
- A list of the top five evaluation criteria to apply to the task in finding the right fit
- A review of the technology considerations which need to be part of the conversation
- Evaluation checklists to assess the service offering and capabilities of fund administrators
“The competition for capital and the ability to attract new sources of capital may be the biggest factors bringing back-office performance into the limelight,” said Anne Anquillare, CEO and President of PEF Services LLC. “It’s no longer enough to demonstrate a solid track record of delivering value, you need to focus on the infrastructure supporting the fund and its investors.”
As recently as two decades ago, few firms outside of the hedge fund market would have considered outsourcing fund administration. But as industry pressures have transformed this back-office function, outsourced fund administration has become a viable option for funds of every size and type, including venture, buyout, debt, real estate, fund of funds, SPVs and SBICs.
“General Partners who are thinking about what they need to scale recognize that outsourcing this back-office function can help the firm meet regulatory challenges, deliver better service to investors, and gain more time to focus on high-value activities,” commented Hank Boggio, Senior Managing Director and Chief Revenue Officer of PEF Services LLC. “Beyond alleviating back-office pressure, outsourcing fund administration enables the firm to leverage its in-house resources for more strategic initiatives.”
This paper is directed to those firms that are currently managing their back office in-house. For firms considering switching providers, read the paper entitled “Making the Switch.” These white papers are part of a series in support of PEF’s commitment to deliver valuable thought leadership content.
About PEF Services LLC
PEF Services is the new standard in providing high-value, high-touch Fund Administration services and technology solutions that elevate operational performance to drive and support sustainable growth. Supported by senior professionals with extensive experience in alternative investments, PEF has a 17-year track record of delivering cost-effective, best-in-class solutions to Funds and General Partnerships, including Buyout, Venture, Emerging Managers, Real Estate, Debt, Fund of Funds, Co-investment, SPVs and SBICs. Additionally, the firm’s LP Administration Solutions Group focuses solely on meeting the unique administration and data needs of limited partners investing in illiquid alternative assets. In partnering with PEF, firms increase operational efficiency, reduce and control operating costs, improve focus on core capabilities, and gain access to experts in private capital back office operations. For more information please visit https://www.pefservices.com/.