North American private equity and VC firms increasingly focus on outsourcing

North American mid-market private equity and venture capital firms have been increasingly turning to third party providers for a range of fund administration services and this trend is only set to continue over the next two years according to new research* from Ocorian, a leading US and global asset services provider.

Over the past two years, almost half (47%) of US and Canadian venture capital and mid-market private equity firms say their use of third-party providers has increased across the fund lifecycle. A further 44% say it has stayed the same, and only 9% say it’s decreased over the last three years.

During this time, almost three quarters (74%) of those surveyed say that their use of third-party service providers for investor onboarding and ongoing investor services has increased significantly, with a further 14% saying this has increased slightly. This is followed by 44% who have significantly increased their use of third-party providers for fund accounting and financial reporting, and 38% who have significantly increased their use of these services for ESG data and disclosure support.

The study with senior US and Canadian executives at mid-market private equity and venture capital firms responsible for $335.25 billion assets under management shows use of third-party providers is set to increase further in the next two years, according to more than eight in ten (81%) respondents. Just 19% said their firm’s use of third parties across the fund lifecycle will stay the same.

The trend is reinforced by recent industry research from Preqin, which found that over a quarter (27%) of GPs are considering switching their current fund administrator in the next 12 months, with errors and rising costs cited as the top reasons for making a change. This willingness to replace incumbent providers underscores the importance of service quality, technological integration, and operational efficiency: all areas cited as key decision-making drivers in Ocorian’s research.

When selecting third-party service providers, particularly a fund administrator, respondents said that an innovation roadmap and being highly responsive to emerging tech trends is the top technology-related factor in their decision-making process. This was followed by the level of automation providers could offer, followed by a proven investment in cybersecurity infrastructure.

The ability to integrate with internal systems and platforms was the fourth most important technology-related factor in firms decision-making processes, followed by the use of AI and machine learning to enhance service delivery and analytics. In sixth and seventh place respectively were the level of dashboards and visualisation tools offered for fund performance and investor data, and finally the quality of the bi-directional workflows.  

Vincent Calcagno, Head of US Growth, at Ocorian, said: “Our research shows that mid-market private equity and venture capital firms across the US and Canada are increasingly outsourcing to top-quality third-party providers for a range of services across their business’s lifecycle.  

Openness to change is at an all-time high as recent analysis from Preqin shows that more than one in four GPs are actively considering appointing a new fund administrator in the next 12 months.  This not only points to a hyper-competitive landscape where quality, responsiveness, and innovation matter more than ever, it also means that only those fund administrators with scalable technology-driven operational frameworks will come out on top.”

*In May 2025, Ocorian commissioned independent research company PureProfile to interview 100 senior venture capital and mid-market private equity professionals in the US and Canada working for firms with $335.25 billion assets under management

Ocorian in the US

Ocorian first entered the US market in 2021 with the acquisition of Philadelphia-based Emphasys Technologies, marking the start of its expansion across the country. Since then, the company has been enhancing its onshore capabilities, making key hires and building out its service offerings to support its growing client base, most recently announcing the acquisition of E78 following its acquisition of EdgePoint in Dallas, Texas in .

Through its New York operations at 505 5th Avenue, Ocorian provides fund managers, private clients, and companies with access to structuring and fund domiciliation hubs worldwide, from Europe and the Middle East to the Caribbean, Latin America, Africa, and Asia Pacific.

The firm's extensive network enables it to deliver proactive administration and compliance solutions that optimise investment performance and business operations across the debt, private, and capital markets. 

About Ocorian

Ocorian is a global leader in fund services, corporate and trust services, capital markets, and regulatory and compliance support.

Unlocking new value for its clients across jurisdictions and service lines is Ocorian’s priority; it manages over 20,000 structures on behalf of 8,500+ clients, including financial institutions, large-scale international organisations, and high-net-worth individuals .

Ocorian provides fully compliant, tailored solutions that are individual to clients’ needs, no matter where in the world they hold financial interests, or however they are structured.

The group offers a full suite of corporate, fund and private client services across a network of offices spanning all the world’s financial hubs. Locations include Bermuda, BVI, Cayman, Denmark, Finland, Germany, Guernsey, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Mauritius, Netherlands, Norway, Singapore, Sweden, UAE, the UK, and the US.

To find out more about Ocorian and its services, including regulatory information, visit www.ocorian.com