JTC offers help for managers of emerging funds deciding on a third-party administrator

As private equity funds grow, their administrative needs become more complex, and doing everything in-house can overburden staff and drain resources. There comes a time to consider a third-party administrator, and picking the right one is important.

There are a lot of factors to consider when making the decision to outsource. There are internal drivers, such as keeping up with growth, back-office turnover, and the evolving role of the CFO, as well as external drivers like increased regulations, investor expectations, and the shifting infrastructure needs of the post-COVID landscape .

Though the decision is a big one that requires careful consideration, many small and mid-size funds end up making the wrong choice of who to work with. Industry data overwhelmingly shows that it’s the small and growing funds that most often change administrators. In fact, 80% of advisers that switch fund administrators oversee funds of less than $100 million.

The number-one reason advisers give for replacing their fund administrators? “They have become more complex and need greater support.” The fact is that funds simply outgrow their small administrators and are forced to make a change, which can be costly and difficult.

Unfortunately, many smaller funds who think they’re upgrading when they go with large companies for third-party administration find out they don’t get what they were hoping for. Far too often, larger fun administrators are preoccupied with larger clients and emerging managers don’t end up with the “A” team. In addition, larger administrators struggle to offer anything but a one-size-fits-all solution that fails to meet the unique and specialized requirements that differentiate an emerging fund.

The solution is to find a fund administrator that can grow with you, offering the specific help you need now along with the potential to grow, flexibility you’ll only get with JTC Americas.

As your fund grows, JTC offers technology-driven, customizable solutions and client services coupled with institutional capabilities that make it easier to manage your data. Our proprietary eSTAC technology platform features built-in compliance and data security, institutional-grade accounting, automated reporting, simple document management, and unmatched transparency. It’s also designed with scalability in mind, so your growth will never be limited by capability, and provides a competitive edge that allows small advisers to compete with larger fund managers.

Whether your fund grows in size, expands across jurisdictions, or changes in objective, our solutions can adapt to meet your needs. Managers who choose JTC don’t have to worry about changing administrators down the line because we can be their local to global partner.

Instead of waiting to get the help you need and wasting resources in the process, we think the time to decide on a third-party administrator is now. And instead of choosing an administrator who can’t work with you on your entire journey, you need to select one that will allow you to utilize the services you need right now and further the relationship as you expand. JTC has that capability, and is ready to work with funds of all sizes to help them meet their goals.

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