Advance Your Fund Administration Relationship with Software

Advance Your Fund Administration Relationship with Software
Anna Yegorova

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[/vc_column_text][/vc_column][vc_column width=”2/3″][vc_column_text tooltip_color=”color1″ tooltip_text_color=”color3″]Whether it is to save time for more value-adding activities, satisfy investors demands, or fulfill regulation requirements, more and more private equity fund managers are outsourcing back-office tasks to fund administrators. Dynamo’s industry-specific fintech can facilitate a stronger data management workflow between the fund manager and admin while driving greater operational efficiency.

The Fund Administration Special 2017 published by Private Equity International dives into the challenges fund managers seek to solve in partnering with fund admins. In Keeping Your LPs Happy (page 12) Robert Brimeyer, COO, and Alan Dundon, CMO, of Alter Domus highlight the burden faced by busy CFOs who are buried in back-office work and have less time to dedicate to strategic decision-making.

The industry experts explain the reason behind the increase in back-office tasks: “To give a high-level answer – limited partners are becoming more demanding in terms of the information they want, and regulators are becoming stricter – on both sides of the Atlantic.” The growth in outsourcing is not surprising and more private equity firms will continue to form partnerships with fund admins.

However, entrusting control of fund administration to a third party does not result in remarkable productivity unless you establish a dynamic partnership with your fund admin. This is where industry-specific software platforms come in. Software platforms optimize relationships between fund managers and admins by instituting a centralized database to ensure that both parties are always on the same page and no deadlines are missed.

Fund Administration Software

Fund Manager & Fund Administrator Relationship_small

Dynamo can create a successful relationship by empowering your fund admin with secure tools that enhance their efficiency. Our online reporting portal is a secure way to streamline administrative and compliance processes. Online reporting portals integrate with third-party accounting systems and enrich communication between fund managers and admins. Administrative processes such as delivering capital calls, quarterly reports, and performance statements are simplified. Since investors update their personal information in the portal all parties have access to the most current investor information at all times, minimizing error. Compliance processes are also streamlined with all relevant documents located in one central hub.

As for security, back-office data is more protected in these portals than if stored in shared drives or email inboxes. Fund admins can also password-protect, watermark, and place distribution restrictions on documents.

Outsourcing back-office tasks to a fund admin yields the greatest value when the relationship is supported by robust front-office operations. Dynamo Software’s solutions such as online reporting portals maximize ROI by enabling superior communication, streamlining processes, and maximizing productivity.

For more on how to make investors happy, hear Brian Woodall, CEO of Lamplighter Financial, explore common, yet often missed or ignored, issues with self-administered fund accounting. Get the free video.[/vc_column_text][/vc_column][vc_column width=”1/6″][vc_column_text]