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OUTSOURCING: Sharing the administrative load

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OUTSOURCING: Sharing the administrative load

Early in 2018, Ocorian conducted an online survey of specialists working within fund advisory and/or management. Respondents were drawn from across the Private Equity and Real Estate profession and primarily based with the UK (71%) or central and western Europe. You can download the full report here.

Why outsource? 

As the demands on in-house fund managers become ever heavier from a regulatory and compliance perspective, our survey highlighted an increased need for managers to outsource fund administration.

The decision to outsource is not a straightforward one and can be driven by many factors. However, a need for cost efficiency and a focus on core competence, underpinned by lack of inhouse expertise, makes outsourcing a priority for many respondents.


  1. Focus on core competences (21.3%)
  2. Lack of in-house expertise (18%)
  3. More cost effective (16%)
  4. Business strategy (12.7%)
  5. Compliance support (9.3%)
  6. Increased regulation (8.7%)
  7. Investor demands (7.3%)
  8. Risk management (6.7%)


David Brown, Partner at Deloitte, has his own view: “Big fund managers are starting to look at their operations as a whole to see how they can get best value. That might be consideration of insourcing versus outsourcing. It might be reducing the number of suppliers that they have. It might be consolidating into a single jurisdiction to get operational efficiencies. They’re driven by the cost of doing business, pressure on management fees and a desire to maintain margins.”

He agrees too that most investment managers do not want to be engaged with every single level of the process: “They don’t necessarily want to insource property management or NAV calculation, for example, and there are some aspects of custodianship that they can’t do themselves. They’re trading off mixed insourcing and outsourcing against full outsourcing to single, or groups of, service providers who are using a common technology platform as far as possible.”

This is supported by our findings, with technical administrative tasks such as investment fund accounting and NAV calculations among the most popular services to be outsourced.


  1. Investment fund accounting (16.3%)
  2. Financial statements (12.2%)
  3. NAV calculations (10.6%)
  4. Compliance and regulatory oversight (9.8%)
  5. Director and trustee services (9.8%)
  6. Valuation and pricing (9.8%)
  7. Investor services (8.9%)
  8. Performance measurement (8.9%)
  9. FATCA and CRS services (7.3%)
  10. Cash management services (6.5%)

"The regulatory landscape has changed forever. FATCA, CRS, BEPS etc … have all challenged us to think, act and report differently.  Technology is also playing an increasingly important role with specialist software now required to report and file in many jurisdictions,” explains Bradley Vautier, Ocorian’s Director of Regulatory Reporting.

“That’s why at Ocorian we continue to invest in a dedicated in-house team to work alongside and support our clients with their regulatory obligations - be that in just one jurisdiction or across multiple international markets. Our focus is to provide solutions: to make processes more efficient and to reduce risk.”

DOWNLOAD THE FULL BRIEFING > The Future of Private Equity and Real Estate Fund Administration

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