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.