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PRIVATE EQUITY: KEY DRIVERS BEHIND THE TREND TOWARDS OUTSOURCING ADMINISTRATION SERVICES

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Traditionally, private equity funds have been self-administered. However, this has begun to change in recent years. Increasing regulation and technology demands are putting more pressure on private equity firms to outsource their administration services.

SCALABILITY

Increasingly, private equity administration requires significant investment in processes, resources and technology. By outsourcing these increasing burdens, fund sponsors can reduce costs and focus on their core competency – investing and generating returns for their investors.

INCREASING REGULATORY PRESSURE

AIFMD and FATCA are just some of the new regulations that private equity firms must now adhere to. Outsourcing regulatory compliance functions to expert administrators ensures that funds and their general partners reduce their regulatory risks and administrative costs.

INVESTOR DEMANDS FOR GREATER INDEPENDENCE AND TRANSPARENCY

Investors are demanding operational excellence from their funds and are increasingly demanding third party administration. The trend to outsource is being driven by market pressure on firms to deliver accurate reporting with greater transparency. Using a third party administrator provides an independent eye and gives investors additional peace of mind.

INCREASINGLY COMPLEX STRUCTURES

As investment structures become more complex, private equity firms are realizing that an Excel spreadsheet will not suffice anymore. Outsourcing to expert, specialist fund administrators minimizes errors and ensures efficient, accurate reporting for investors, general partners and regulators.

CONTACT CENTAUR CONFIDENTIALLY

US:             +1 212 651 7287         Des.Johnson@centaurfs.com
Europe:    +44 203 709 4983     Gavan.McGuire@centaurfs.com

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