The fund administration industry is facing its “Kodak moment.” Here's why true transformation can't wait.
Note: This article was originally published in Paperjam, the leading monthly publication of economic and financial political information in Luxembourg.
Kodak invented the digital camera in 1975. But fearing it would disrupt its lucrative film business, it chose not to act. The result? Irrelevance.
Today, the fund administration industry stands at a similar crossroads. Long protected by complexity, relationships and manual workflows, most fund administrators have been slow to embrace innovation. Many see the rise of AI and automation – but hesitate to change. Like Kodak, they risk becoming cautionary tales.
On the surface, the sector looks healthy: AUA is growing, firms are expanding, and fund managers continue to outsource operations. But many firms still rely on spreadsheets, siloed systems and manual processes. Technology investments are often piecemeal – one portal here, a data warehouse there – leaving an operating model that appears modern but is brittle at its core.
This isn’t due to ignorance. Leaders feel the pressure. But like Kodak in the ’90s, many assume they have more time than they do.
Kodak didn’t fail from lack of foresight. It failed because it didn’t pivot. Today’s fund administrators face the same dilemma. Many are experimenting with in-house tools, but few are rebuilding workflows to unlock true scale. Most still rely on human coordination and fragmented data.
This is the “Kodak moment.” It’s not about recognising innovation – it’s about acting on it, even if it threatens legacy models.
Pressure from fund managers and LPs is accelerating. They expect always-on access to clean, standardised data, custom reporting and seamless workflows – from capital calls to NAV delivery. And they want it all faster, at lower cost, with fewer errors.
Legacy tech stacks weren’t built for this world. They depend on human memory, email chains and institutional knowledge – not system logic. That creates untenable risk and cost.
Enter the next generation: tech-native fund administrators. Their platforms offer:
• API-first architectures that integrate with GPs, auditors and LP portals.
• AI-native workflows that automate reconciliations, capital calls and communications.
• Embedded compliance that flags anomalies in real time.
• Self-service LP dashboards that eliminate unnecessary back-and-forth.
You may think size is an advantage. But in this new era, it’s often a liability. Large firms are weighed down by outdated systems, cultural resistance and low adoption. Even when tools exist, transformation is slow.
Fund managers have a choice: stick with the familiar – or move forward with partners built for the future.
The fund admin landscape is being redrawn. The winners will be those who act boldly – rethinking workflows, embracing tech-first models, and building cultures of innovation.
At Juniper Square, we’re building for that future. Our connected fund software and services help GPs scale efficiently, reduce risk and deliver a world-class investor experience.
Fund administration is having its “Kodak moment.” We all know how that story ends. The question is: who will rewrite the script?