Case Study | Insource to Outsource: Creating Time for Priorities

Updated on: April 13, 2023

For private equity funds, the administrative back office functions can accelerate exponentially with a firm’s rapid growth. Quickly, the core business that requires leadership’s focused attention — deal identification and preparation, stakeholder relations, research, analysis — can take a back seat to the operational administrative functions required to maintain reporting and compliance.

A leading fund of funds investment firm with over $4 billion Assets Under Management (AUM) found themselves in just such a situation after self-managing their fund administrative functions in-house. Soon their reporting volumes which were being managed manually had outgrown their existing capabilities.

They realized that the best way to ensure future growth and keep pace with their expanding client portfolio and related back office functions was to consider fund management outsourcing services.

Private Equity Fund Administration Outsourcing Services & Solutions

Most funds start out managing their back office administrative services in-house but can find over time that their concentration on these back-end services takes away valuable focus from their core business priorities. This creates challenges for asset management and financial advisors that find they no longer have the time needed to address their priorities.

For these funds of funds investment managers, the decision to outsource through Gen II was a sound decision that protects their future growth while also providing financial savings and, most importantly, allowing them to reprioritize and address their investment-related priorities.

Through a structured and phased data transfer for one of their initial funds, the client was able to move their valuable client information to Gen II’s reporting and analytics platform where immediate outsourcing benefits and cost savings were recognized. From there, an additional 18 existing funds and nine new funds were transferred to the Gen II platform.

Benefits of Outsourcing Investment Management

With Gen II’s investment management outsourcing, the fund of funds recognized operational efficiency and enhanced data tracking. Private equity business process outsourcing allowed them to reap the following benefits:

• Automated reporting and financial statement capabilities, including Gen II’s proprietary statement-generating functions that streamlined administrative processes.
• Gen II brings the oversight needed along with asset expertise with no expansion of the fund’s internal financial department.
• Risk has been reduced through Gen II’s automated reporting tools. Manually prepared investor reports and statements have been replaced, while consistent reporting is ensured.

Best Funding Platform for Transition

The key to this client’s successful transition rests with the Gen II reporting and analytics platform which takes large amounts of data and transforms it for seamless reporting to keep a fund and its client investors fully informed. Gen II’s purpose-built suite of proprietary technology tools are fully compliant, powerful, and cloud-based, so clients can rely on Gen II’s outsourcing services.

Published on: June 1, 2022