A doubling of private equity assets in six years, to $4,000 billion, is accelerating the outsourcing to administrators. News site Global Custodian sums up a report by research provider Prequin.
Investors are viewing further investments into the fast-growing private market. According to the Global Custodian article, private equity funds have been lagging behind their hedge fund colleagues when it comes to outsourcing the fund administration.
Now, however, they are increasingly motivated to do so, under the challenges of rapidly growing assets under management, new regulations and a demand for better technical solutions.
Show me your money
“Clients are also demanding more granular, near real-time performance reports while some are making their investments conditional on GPs filling out the Institutional Limited Partners Association (ILPA) fee disclosure template – a transparency framework introduced in the wake of regulatory and investor criticism about erroneous costs and charges creeping in at private equity managers,” adds Global Custodian.