Fund administration business PEF Services has published a handy guide to selecting a fund admin.
The firm’s white paper breaks down which areas of a fund admin to consider into five categories: capacity (can they handle complex funds?); expertise (do they know the ins and outs of private capital funds?); service (check the service level agreement); and security (make sure SSAE 18 System and Organization Controls 1 Type 2 audit standards are in place).
It also lays out three tech demands that CFOs should make of any fund administrator:
- Investors increasingly expect more access to data from their GPs. Find a fund administrator that offers an investor portal capable of collecting key fund data and a range of performance metrics.
- Reporting is necessary but can also become a time-consuming task if not paired with the right technology platform. Find a fund administrator that consolidates fund data on a centralized platform and offers customizable reporting dashboards and report templates.
- Having the proper security in place is not only important to avoid potential fines, but it’s also crucial to protect investor data. Find a fund administrator whose platform technologies have advanced security features, such as two-factor authentication and extended validation.
The report comes with a neat evaluation checklist, as well.
I’ll be at the Private Debt Investor CFOs & COOs Forum in New York next week – drop me a line if you’re planning to attend. Rod James will be at the InvestEurope CFOs Forum in Madrid.
Today’s letter was prepared by Brian Bonilla.