"Regulatory changes are driving a shift away from higher risk jurisdictions, investors are demanding greater transparency, and fund managers are focused on procuring partnerships with financial institutions that have the specialist skills and technology to deliver on those requirements."

TOP 3 TRENDS: The future of Private Equity and Real Estate Fund Administration

24 Apr 2018

 

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

DEVELOPING TRENDS

As the demands on fund managers become ever heavier from a regulatory and compliance perspective, the role of independent fund administrators will become even more important as three key trends continue

  • MARKET EVOLUTION > political and regulatory developments prompting more managers to establish fund structures in jurisdictions with high standards of regulation and compliance
  • SMART TECHNOLOGY > a growth in the adoption of technology platforms to cope with better data integration linking underlying investments, managers, administrators and investors
  • SPECIALIST OUTSOURCING > an increased need for managers to outsource fund administration to focus on their core competences of managing investments on the one hand and maintaining client relations on the other

Commenting on the findings, Simon Burgess – Global Head of Alternative Investments at Ocorian – said: “Fund administration is changing. Regulatory changes are driving a shift away from higher risk jurisdictions, investors are demanding greater transparency, and fund managers are focused on procuring partnerships with financial institutions that have the specialist skills and technology to deliver on those requirements.

“This has not and will not be an easy journey, but it is one that continues apace. In conducting this survey, we wanted to understand what challenges and opportunities are currently faced by fund managers and advisors – and how we, at Ocorian, can be best placed to enhance support.”

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