Fund Administration As A Profit Center
Innovative approach to fund administration and representing the priorities of fund administration in the major trade associations in the industry.
We have discussed the various ways outsourcing fund administration saves money. However, it gets better than that. There are several ways that a top-tier fund administration company can significantly enhance fund management’s ability to make money.
Your fund administration partner, as an agnostic third-party provider of back-office services, is obviously unable to introduce capital, refer potential investors, or promote your investment product in any manner.
Still, there are several ways your fund administration infrastructure can dramatically improve management’s capacity to generate fresh funds if the fund administration provider is thoroughly experienced, uniquely equipped, and truly aligned with management’s goals.
So, where does fresh capital come from, and how can fund administration enhance fundraising?
Finding new investors for your fund requires knowledge. Actionable data provides insight. Your fund administration partner’s investor record keeping system should provide actionable data. This is, however, a rare occurrence. Few fund administration companies take advantage of tools that can generate detailed sales and marketing reports.
New Investing Prospects
The reputation of a fund administration provider among financial advisors can also help sales. Advisors seek hassle-free interactions with fund administration providers, with minimal errors and delays and the most efficient data flow and communication possible, resulting in faster admit dates. A fund administration system’s connectivity is also a crucial factor. Broker-dealers, RIAs, wire houses, custodians, family offices, the AIP platform, DST FANMail and other industry participants should all have live digital access to fund administration systems to streamline data flow to make the experience of investors and advisors easier.