Let’s clear the air about some common misconceptions about fund administration!
❌ Myth: Fund admins only handle accounting
✅ Fact: A good fund administrator offers regulatory oversight, investor reporting, capital calls, distributions, operational support and more, ensuring the fund runs smoothly
❌ Myth: I’m a solo GP…I can manage fund admin myself with spreadsheets
✅ Fact: Fund admin is a profession… self-administration will increase errors, compliance risks, and inefficiencies, preventing your fund from scaling
❌ Myth: Compliance is only necessary once the fund grows
✅ Fact: Even small funds must comply with regulations from day one to avoid risks and unnecessary exposure
❌ Myth: Hiring a fund admin means losing control
✅ Fact: A good fund administrator acts as a partner, not a replacement, helping fund managers focus on investment decisions while ensuring smooth operations
❌ Myth: Big fund admins are always better
✅ Fact: Larger fund administrators typically service clients with a cookie-cutter offering, while boutique firms can offer tailored services to support the unique needs of smaller, emerging funds
