By Aditya Gupta, Global Client Partner, ONS Finserv
The Challenge with Large Fund Administrators and the Emergence of New-Age Managers
For decades, the fund administration industry has been dominated by a few large players – global custodians and multinational service providers whose size was once their greatest strength. Yet in today’s fast-paced and tech-driven investment environment, that very scale has become a weakness.
Most legacy administrators rely on outdated systems, siloed departments, and rigid service models designed for mega-funds with uniform reporting cycles. The issue isn’t capability, it’s agility. As private markets have become more crowded, managers increasingly reward administrators that deliver speed, data connectivity, and real-time reporting – rather than just scale.
According to a Preqin report, the number of active GPs has risen from 11,725 (2018) to 16,289 (Sep 2023), intensifying expectations around responsiveness. Smaller and mid-sized managers – hedge funds, private equity funds, and venture capital funds with AUMs below USD 500 million often find themselves in the back seat, waiting weeks for reconciliations, reports, or compliance responses. This lag can cost both investors’ confidence and market opportunity.
Enter the New-Age Fund Manager! Digitally native, investor-centric, and laser-focused on transparency. These firms value real-time insights, flexible reporting, and service teams that understand not just accounting, but also fundraising, ESG integration, and multi-jurisdictional compliance. For them, “big” no longer means “better” – it means “slower.”
Why Choose a New-Age Fund Administrator
The new-age fund administrator is not defined by headcount or geographic sprawl but by responsiveness, innovation, and strategic alignment. Here’s what sets the new generation apart:
- Speed and Agility: Cloud-native platforms and API-driven workflows replace email chains and Excel macros. NAVs that once took days can now be processed within hours.
- Cost Efficiency: Without the overhead of legacy systems, new-age administrators can deliver the same or better service quality at 15–25% lower cost, offering more value per dollar.
- Tailored Engagement: Unlike industrial-scale service centers, they provide dedicated relationship managers who truly understand your investment thesis and operational preferences.
- Tech-First Compliance and Reporting: With AI-driven reconciliation, digital investor onboarding, and instant regulatory updates, compliance stops being a burden and becomes a competitive advantage.
- Strategic Partnership: They don’t just “service” funds – they help optimize structures, introduce banking and legal partners, and align reporting formats to investor expectations.
What Should Asset Managers Look for in a New-Age Fund Administrator
Selecting the right administrator is about finding a growth ally, not just a vendor. The right partner will amplify your fund’s capabilities in five key dimensions:
- Technology Backbone: Look for platforms that provide real-time dashboards, automated reconciliations, and customizable investor portals. Ask about integration with your accounting, CRM, and compliance tools.
- Jurisdictional Expertise: Whether your fund is in DIFC, ADGM, Cayman, or Mauritius, your administrator should understand local regulations, be it the DFSA, CIMA, FSC – and maintain direct relationships with those authorities.
- Transparency and Governance: Independent verification of valuations, investor communications, and AML/KYC processes ensure that your credibility stays intact.
- Scalability: Can the administrator handle your next fund, new investor classes, or a shift to a PCC/VCC/ICC structure without reinventing the wheel?
- Human Touch: Technology is only half the story. Responsive service teams – where queries are resolved in hours, not weeks. This makes all the difference when dealing with LPs, auditors, or regulators.
Why It Matters
Fund administration isn’t just about processing data – it’s about safeguarding reputation and investor confidence. Every delayed NAV, mismatched statement, or regulatory oversight erodes trust.
Credibility builds confidence – and in a crowded market, New-Age Fund Administrators that can demonstrate proven case studies, respected leadership, and independent recognition will naturally stand out.
A well-chosen administrator becomes an invisible backbone of your operations, quietly ensuring that your investors, auditors, and regulators see precision, professionalism, and reliability in every touchpoint.
Final Thought: A Strategic Shift Worth Making
In a world where funds are launched faster than ever and investor expectations are rising by the quarter, asset managers need more than operational support – they need a strategic partner who evolves with them.
New-Age Fund Administrators may not yet have the brand clout of global giants, but what they offer is far more valuable:
deep engagement, faster turnarounds, flexible solutions, and forward-thinking innovation.
The right administrator will not only meet your fund’s needs today – they’ll build the operational foundation for where you’re headed tomorrow.
Because in the end, it’s no longer about who’s biggest – it’s about who’s right for your strategy.
At ONS FinServ, we don’t just ‘administer’ – we co-pilot. We operate as business partners, not just service providers. If your fund deserves faster, clearer, and more flexible administration – Let’s talk!
