According to a Preqin Special Report on service providers, more than 30% of GPs switch administrators every year. This highlights the importance of selecting the right team from the beginning.
To help guide you in your search, here are five must-have characteristics for a modern fund administrator.
Accountability – They provide technology and support that anticipates investor expectations and helps GPs actively strengthen partnerships with LPs.
Structure – They help GPs adapt to a world of data ubiquity by structuring, securing, and aggregating data in a platform that serves as a single source of truth.
Trustworthiness – They enhance controls for GPs by automating workflows and enabling visibility and approval rights that reduce errors.
Efficiency – They enable GPs to scale operations by streamlining their reporting to satisfy the world’s largest institutional LPs.
Tech enablement – They deliver administration via purpose-built technology that unites GPs and LPs around a shared record of their partnership.
Of course, any administrator can claim to have these characteristics and capabilities. It’s important to ask the right questions as you evaluate potential partners – and know what to look for in their answers.
That’s why we developed this helpful tool, Your guide to selecting the right fund administration partner. From the investor experience and data management to subject matter expertise and more, it outlines more than 25 detailed questions you should ask and includes an evaluation scorecard to help you keep track of answers.