Choosing The Right Fund Administrator

Choosing a Fund Administrator in Today’s Evolving Private Markets Landscape

As the private capital and alternative investment industry continues to evolve, there is greater emphasis on transparency, regulation, and investor scrutiny.  Choosing the right fund administrator is more critical than ever. With dozens of options in the market, ranging from global giants to boutique firms, the right choice requires more than just checking boxes. It requires a strategic assessment of alignment, capability, and long-term fit. 

Bigger Isn’t Always Better 

The appeal of a well-known, global fund administrator is understandable: reputation, reach and the promise of investing in scalable technology. But larger doesn’t always mean better, especially in a service-driven business like private capital fund administration. 

Today’s large administrators are caught in a perpetual cycle of land grabbing revenue and effecting operational restructuring as a means to achieve growth targets, market dominance and an ever-increasing need for greater profitability. In practice, only the largest clients receive white-glove service, while smaller or mid-sized managers are deprioritized via offshore handoffs and a ubiquitous and compartmentalized service model. True “best-in-class” service providers should instead focus on the stability of the service teams, the quality of the deliverables, the implementation of end-to-end technology solutions and organizational leadership that stands behind the words underlying their marketing propaganda. 

Things to consider when choosing the right partner include:

SERVICE TEAM STABILITY

Fund administration isn’t a one-size fits-all service, it’s a specialized discipline that demands deep knowledge of fund structures, asset classes, regulatory environments, and investor expectations.   

Incumbent providers emphasize their asset class expertise (e.g., large numbers of people dedicated to private equity, venture capital, private credit and real asset lines or business), but do they actually have the experience required to support managers through growth phases, exits, or transitions in ownership? 

Can they commit to real, dedicated people who will work on your fund? Do they have the technical and accounting knowledge to support your strategy and reporting needs? Will you have access to senior accounting staff or be handed off to functionalized offshore teams post-onboarding? 

  

MODERN TECHNOLOGY

Private capital investing is becoming increasingly data-driven and so must your fund administrator. Manual processes, legacy systems, and spreadsheet workarounds are no longer sufficient in a world that demands audit-ready transparency and investor-level granularity. 

Your administrator should offer modern, secure, and customizable platforms that automate reporting, investor communications, capital accounting, and compliance workflows. Can their technology scale with you? Does it support ILPA reporting standards, waterfall modeling, and performance metrics? Are APIs and data integrations available for your internal systems? 

Good technology doesn’t just reduce errors, it saves time, reduces operational risk, and makes fund operations more scalable. 

 

VESTED OWNERSHIP

Ownership structure often goes overlooked, but it can be a revealing indicator of service philosophy and long-term alignment. 

Independent and employee-owned firms provide stability while simultaneously focusing on client satisfaction and investing in relationships rather than revenue. This in turn minimizes pricing pressures, leadership turnover, and the offshoring of operations. 

Ask yourself: Who owns your administrator, and how might that ownership influence the service you receive? 

Choose a Partner, Not Just a Provider 

Your fund administrator plays a critical role in your day-to-day operations, investor relationships, and long-term reputation. This isn’t a one-size-fits-all decision. Choose a firm that fits your size, strategy, and service expectations and one that will evolve with you as your fund grows. 

In a landscape of increasing complexity and heightened LP scrutiny, your fund administrator shouldn’t be just an administrator, they should be a partner who shares your standards for excellence, transparency, and accountability.