Outsourcing fund administration, fund accounting, and other back office services is no longer just about cost-management or a “nice to have.” With the right technologies, expertise, and thoughtful systems design, forward-looking managers can turn their back office into a competitive advantage.
The benefits of using Servicing Pros comes down to 6 main items:
1. EXPERTISE: First-time fund managers, even those with prior experience of established firms, frequently underestimate the complexity of fund administration. Engaging a third-party administrator from the outset addresses this challenge, ensuring accuracy and efficient management of intricate details.
2. SCALABILITY: Outsourcing to a third party enables you to leverage a team of experienced individual accountants and seasoned fund administration professionals who can efficiently oversee all aspects of your operations. By outsourcing, you gain the advantages of a comprehensive partnership, allowing you to scale effectively and streamline operations.
3. TRANSPARENCY: Numerous institutional investors anticipate that you'll engage a third-party fund administrator to handle financial records, with some making it a prerequisite for their investment. This external administrator adds an additional level of scrutiny, ensuring investors can rely on the accuracy of the information provided.
4. PEOPLE: An effective administrator must collaborate effectively with various service providers such as lawyers, CPAs, banks, and auditors. Think of the fund administrator as the central hub of a wheel, facilitating coordination among all service providers. Their accounting team should establish and sustain clear lines of communication with all other service providers, orchestrating the team's efforts seamlessly to ensure everyone is adequately supported.
5. COST EFFICIENCY: Servicing Pros prioritizes the quality of our clients over sheer quantity, allowing us to offer cost-effective solutions tailored to funds of any size. We pledge a responsive partnership, ensuring you perceive us as integral members of your team rather than just another service provider. For smaller funds, we offer bundled services encompassing Fund Accounting and Fund Administration.
6. BOUTIQUE STYLE SERVICE: We extend personalized service to both our clients and YOUR clients. Our team exclusively comprises individuals with backgrounds in accounting or finance, guaranteeing that every call is promptly attended to by a competent and seasoned team member.
Post created on 01/29/2025