A Valuable Operational Ally for Private Equity and Venture Capital – Outsourced Transfer Agent Services
Many fund managers outsource transfer agent services so they can focus on their main capabilities: raising capital, acquiring assets and producing returns for investors
The wind is at the backs of emerging private equity and venture capital fund managers. Private equity and venture capital have become increasingly popular and the alternative investment sector as a whole is attracting more capital than ever before. And third-party transfer agent providers are now meeting the back-office needs of more offerings than ever before. There are many new transfer agents entering the space as a result but the best transfer agent companies have a long proven track record of high performance, strict regulatory compliance procedures and a commitment to transparency and customer service.
Emerging managers, spin-offs and first-time funds are now considered realistic options for many investors’ portfolios. Outsourced transfer agent services are regarded a critical component to have in an investment fund offering because these managers were previously thought to be too risky for conservative clients. Emerging managers must demonstrate that they not only have a compelling investing thesis but also the transfer agent and administration infrastructure to back it up, in order to take advantage of the critical opportunity of investor demand.