Fund Managers: VG reveals the recipe for selecting the best Fund Administrator (2024)

For me, the phrases “the bigger the better” or “one size fits all” are completely inaccurate when it comes to finding the right administration partner to support your fund platform. Why do I say this?

For a start, a good fund administrator performs the back-office work freeing you up to focus on raising, deploying and managing investor capital and generating the best returns for your investors.

But it’s more than just that.

Top fund managers rely on their administrator being highly specialised and advising on industry best practices.

What’s more, flexible and switched on fund administrators get their decision-makers involved early on, so that questions or issues are resolved quickly.

The best administrators really are an extension of your internal team, supporting your operations, managing your operational risks and helping to develop your business as it grows and faces market changes.

Therefore, the top qualities to consider in choosing the right administrator are:

• Experience and expertise. Choose a Fund Administrator that shares your values and has long-standing expertise in your sector.
• Full service capability. Are the Administrator and its people competent in the full range of core and ancillary services (fund set up, corporate governance, investor services, financial reporting, tax and compliance reporting, regulatory compliance)?
• Relationship. Think of a valuable partnership rather than hiring a service. Will you work with a quality team who you will know by name?
• Established compliance and oversight. Your administrator should manage the operational risks and provide a comprehensive range of fund services you can rely on for compliance and operational success.
• Industry-leading technology. Top Fund Administrators have robust technology infrastructure to provide you with efficient and reliable services. Accuracy is crucial when processing data - quality systems reduce accounting and reporting errors and save time.
• Cost-effective. Partnering with the right fund administrator reduces your overhead and gives you back time to focus on managing your funds. Assess the Administrator’s costs but don’t select one based on fees alone. A quality fund administrator may not be the cheapest, but they will lower your operational costs and increase your ability to attract investors.

In summary, for fund managers it’s vital to partner the right administrator that aligns well with your business and with whom you can build a long-lasting relationship. If a fund manager is the restaurant front of the house, operating the business and dealing with clients, then your fund administrator is the kitchen, consistently delivering quality output and service that ultimately delights your clients, enhances your reputation and plays a role in your success.

Paul Mundy

Director Funds

VG