Is your Fund Administrator giving you the A-Team?

The “A-Team” Is Saved for the Biggest Fish in the Pond

Fund managers seek reputation and reliability: a competent and devoted partner they can trust. They want to work with tried and tested experts who can do their job.

Running a large administration firm means having large resources at your disposal, including human resources. While this factor does present one of their key strengths, in practical terms, this often means that not all personnel will have the same level of competencies and experience. 

At the larger “brand name” fund administrators there will often be an “A-Team” pool of great talent that is in high demand, and then there will be all others, the “B and C Teams”. The former will usually be deployed on bigger, more prominent names and more lucrative accounts, while the latter will be assigned to clients that may look like small fish in a big pond. The reality is that a large administrator will be more focused on higher-paying fee clients while others will usually not get the same level of attention.

If you are not a prominent more lucrative fund manager, a larger “brand name” administrator will probably not be a perfect fit. Despite all the bells and whistles that you expect to come with larger service providers, you may end up with a subpar service — below what you could get with a smaller, boutique type service provider. In our experience, it is not uncommon for fund managers to switch fund administrators if they feel they are not getting adequate attention and service. 

In contrast, boutique service providers usually have a more integrated, holistic view of their talent pool, which means a more consistent service across their client base.

If you are an emerging manager or a startup fund, your needs will be much different than the needs of a more established manager — but will a large administrator be able to respond or willing to accommodate these unique needs? 

While more established managers tend to go straight to the large service providers to get a one-stop-shop with the full suite of services, emerging and middle-market managers will benefit from a more personal touch. For them, engaging a fund administrator goes beyond simply outsourcing back-office operations. A boutique fund administrator with whom they are likely to form a strategic partnership will usually be a better fit. 

Reliant Fund Services doesn’t employ B and C Teams. We only hire the A-Team for our clients and we don’t look at our clients for how much revenue they bring us, we staff them with only the best regardless of size or fees being paid.

Reliant Fund Services provides full administration and accounting solutions to both the first time fund up through experienced middle-market private equity and venture capital funds.  With a management team that leverages its many years of experience, we are committed to offering a premier experience to each client. Our clients are at the center of all we do. With a dedicated team of highly skilled professionals assigned to each client, we firmly believe that all clients should receive the highest service level.