Why people should consider hiring a fund administrator

With the many disruptive and speedy developments and advancements in financial technologies and methodologies, Scott Tominaga of PartnersAdmin LLC mentions that the aid of a third-party fund administrator may be key to modern business growth.

For this blog, Scott Tominaga revisits the reasons people should consider hiring a fund administrator.

Fund administration is a complicated and essential part of company operations. Hiring private specialists to work on it will free up hedge fund managers and generally increase company efficiency.

Fund administrators generally work independently to correct reporting of deals and transactions, manage capital calls, calculate net asset value, and provide general investor support and improved investor relations.

Outsourced fund administrators are aware of the latest trends in the industry, particularly in relation to new technologies and updated security protocols and measures, from high levels of data encryption to new file transfer protocols (FTPs).

Scott Tominaga explains that the industry must likewise contend with higher demands for reporting, reduction in employee risk, and lower costings for fund operations.

While efficiency is the main goal, third-party fund administrators likewise aid greatly in improving investor confidence. This is because it works on making all aspects of the business transparent to both company and investors.

Scott Tominaga also adds that detailed and timely reviews of companies’ operating practices are especially critical when many institutional investors allocate money to private equity.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has almost two decades of experience in the hedge fund and financial services industry. He has an extensive understanding of the middle and back office, accounting, compliance, and administrative functions within financial services firms. For more insightful reads on investment and finance, visit this page.