Outsourcing fund operations
Rightsourcing is the reassignment of responsibility for a specific business function, either internally or to a third party. It is a strategic means for private equity fund managers to optimise business process and increase efficiency through dedicated service offerings. We can provide a roadmap to achieve the optimal amount of outsourcing today and in the future.
Optimising outsourced relationships
By reviewing your current processes and technology, we can help optimise your existing outsourced relationships. We benchmark against industry best practice, advise on systems integration and recommend options to improve automation and reconciliation. We’ll also evaluate the relationship between the third-party administrator and client, removing redundant data processes and ensuring the SLA is current, feasible and regularly monitored using KPIs. We will ensure your firm realises the full value of your outsourced providers.
Get in touch to discuss your outsourcing requirements
Firms who have never outsourced, or whose in-house administration teams have grown large organically, will need to review their operating model before considering outsourcing. We can support this process to ensure operational readiness. We’ll account for scalability, with agile operating models that can bridge multiple service providers and accommodate outsourced business functions when future growth targets are achieved. With the right operating model your firm will be ready to respond to changing regulatory environments and ever more complex fund structures, while enabling your team to focus on strategic initiatives such as fundraising and investor servicing.
Selection and on-boarding of third-party administrators
Our experience in selecting suppliers, running unbiased RFP processes and project management will help make your on-boarding a timely success. We’ll advise on each provider’s own operational readiness, with an onus on regulation and compliance, and assess the maturity and robustness of their systems to establish which is best placed to support your business needs. We will ensure strategic alignment and the necessary scalability against your own business model.
There are many reasons why firms outsource their fund administration functions.
Common drivers include:
- Expanding and increasingly complex portfolios stretch the available internal resources
- A new fundraise creates an opportunity to review existing processes
- First-time fund managers delegate tasks to specialist third parties to create efficiencies and reduce operational risks
Through outsourcing, most firms benefit from:
- Access to innovative technology
- Improved service and scalability
- Reduced operational risk
- Reduced operating costs and enhanced performance
Our extensive experience with clients of all sizes enables us to advise you whatever your outsourcing drives might be. We can strategically assess the business functions under consideration for outsourcing and build a benefits case for moving forward in line with your firm’s organisational structure and operating model.
For more information about how we can advise on selecting an outsourcing partner, please contact Barney Piggott or Jeremy Hocter.