by Janice Schopper, PEF Services

Fund managers may choose to outsource fund administration at any time, but the following indicators may help pinpoint a more urgent need:

  • Investors demand transparency. Recent scandals cause investors to demand
    third party involvement in fund operations and reporting.
  • Regulatory requirements shift or increase. Countless factors can change compliance standards at any time. An experienced, immediate staff is essential.
  • Staff turnover. Fund managers may hire stellar employees, but it’s always risky
    to entrust a fund’s operations to an individual or even multiple individuals without a strong backup plan.
  • Fund complexity increases. Adding capital, investors or opportunities to the mix
    can be a daunting task – fund managers must always be prepared for growth.
  • Fund manager time. When a fund manager spends too much time away from sourcing and monitoring investments, outsourcing should be considered.