Fund manager scale-ups: balancing growth with efficiency

This article aims to provide actionable insights for fund managers to effectively navigate the scale-up pathway and achieve growth without proportional cost expansion.

Integrate, don’t replicate

A streamlined relationship with your fund administrator can be transformative. This partnership hinges on integrating processes and responsibilities rather than duplicating efforts, ensuring efficiency and clarity at every stage:

• A clear deal process: Establish a robust process for your deal cycle—from due diligence, deal execution through to facility drawdown, capital call issuance and deal settlement. Ensure the full end to end deal process is clear, well-documented and accepted and well understood by both your internal deal team and your administrator.
• Structured communication: Support a transparent and structured communication framework. This ensures clarity on deliverables, pipeline activities, and priorities between your team and proactively driven by your administrator.
• Reliance on controls: Develop/request an in-depth understanding of the controls performed by your fund administrator. This allows you to rely on their processes rather than re-performing tasks, saving time and reducing redundancy.

Oversight and control

Scaling doesn’t mean relinquishing control. Effective oversight ensures that operational standards and strategic goals are met as your fund grows:

• Key Performance Indicators (KPIs): Agree on KPIs that reflect both parties’ expectations. Fund administrators should provide proactive reporting against these metrics to ensure alignment and accountability.
• Proactive Deadline Management: Administrators should proactively highlight upcoming deadlines and critical workstreams, enabling fund managers to plan, scrutinise and respond effectively.

Leverage technology

In today’s tech-driven market, fund administrators invest significantly in advanced systems and reporting platforms, aiming to deliver cutting-edge tools that enhance efficiency, accuracy, and scalability. Fund managers can unlock substantial value by maximising the potential of these investments rather than duplicating efforts or maintaining costly third-party systems.

• Utilising existing tools: fund administrators have spent significant time developing and refining their technology solutions, incorporating automation, data visualization, and compliance tools designed specifically for fund management needs. By leveraging these platforms, fund managers can:
  • Enhance reporting: Access real-time, detailed financial and operational reports tailored to their requirements, providing transparency and insights.
  • Streamline operations: Automate routine tasks such as NAV calculations, investor reporting, and compliance monitoring, reducing manual effort and minimising errors.
  • Ensure compliance: Rely on integrated systems designed to keep pace with evolving regulatory requirements, ensuring seamless adherence to global standards.
• Collaborating on custom solutions: While standard platforms address most fund manager needs, unique challenges often arise during scaling. Engaging in open dialogue with your fund administrator allows for tailored adaptations or co-developed solutions.

By leveraging the administrator’s existing infrastructure, fund managers can achieve cost-effective innovations that align with their objectives, avoiding the expense and complexity of developing systems in-house.

The Belasko advantage

At Belasko, we understand the unique challenges fund managers face when scaling up. Our partnership-driven approach offers end-to-end fund administration solutions tailored to support your optimal operating model. By integrating our services into your operations, we help fund managers achieve growth without compromising on oversight, control, or efficiency.

If you’re looking to scale up effectively, contact Nick McHardy, Head of Funds ([email protected]), to learn how Belasko can support your journey.