PRIVATE EQUITY: THE RISE OF THE HYBRID FUND ADMINISTRATOR
As managers develop more private equity-like fund strategies and hedge funds become more attractive to private equity investors, there is a real demand for administrators to deliver a hybrid solution that incorporates elements of both private equity and hedge funds. Centaur presents four reasons why legacy service providers have been losing private equity clients to more robust fund administrators who offer hybrid administration services.
DEMAND FOR GREATER EFFICIENCY AND ACCOUNTABILITY
Successful managers have responded to investor demands by offering greater transparency and access to all asset classes via one vehicle rather than having to invest in many. This hybrid flexibility gives managers a competitive edge by driving down costs and improving operational efficiency.
MORE INVESTMENT OPPORTUNITIES
Traditional private equity administrators have limited experience, which in turn stems the business development of their clients. At Centaur, clients have the bandwidth to develop new products and report their performance using the most innovative systems in the market.
COMPLEX STRUCTURES AND REGULATIONS REQUIRE EXPERTISE
It makes economic sense for managers to outsource regulatory compliance functions to expert providers where possible. Administrators have the necessary skills and data to ensure that all funds comply with regulatory requirements. The same applies for complex structures, where the hybrid model reduces operational errors, delays and inaccuracies associated with the increased complexity of multiple fund structures.
TRANSPARENT REPORTING IS THE NEW STANDARD
Managers want high quality, accessible and customised reporting from a single source and in a form that meets the managers, the investors and in many cases, the regulator’s requirements. Successful administrators create robust and accurate reporting in a single report drawn from multiple sources.