Imagine discovering a leak in your roof. You could move the furniture, place buckets to catch the drips, and hope for dry weather. Or you could call a contractor and fix the problem properly. The same logic applies to fund administration migrations. When you feel your fund administration arrangement can be improved, made more efficient and can really use an upgrade, this article is worth your time. Maintaining the status quo impacts your operations; delaying a migration only postpones the much-needed route to advancement. If you know the current setup isn’t working, the best time to act is now.
This article outlines why fund managers should consider changing fund administrators and how fund managers can approach a migration with confidence. It covers the key phases: project management, change management, timing, data handling, parallel accounting runs, KYC checks, and fee negotiations, and concludes with why the effort is worth it.
- Service Quality Issues. The administrator may be experiencing high staff turnover, providing slow reporting, inaccurate NAV calculations, or weak investor support.
- Cost Efficiency. A different administrator may offer more competitive and transparent fees or a better value-for-service balance
- Technology & Reporting Capabilities. Upgrading to a provider with stronger digital platforms, real-time reporting, automated workflows and a secure portal for LPs.
- Regulatory & Compliance Expertise. Ensuring the administrator has deep knowledge of evolving regulations and strong internal controls.
- Scalability. Switching to a provider that can support larger fund sizes, multi-jurisdictional structures, or new asset classes.
Treat Migration as a Project
A successful migration starts with treating it as a formal project. This means assigning a dedicated project manager (often from the incoming fund administrator), who can coordinate timelines, milestones, tasks and stakeholders. A structured approach ensures that nothing falls through the cracks and that the transition is smooth and predictable. The project manager is to establish clear milestones, such as data handover, system setup, parallel runs and go-live dates. Weekly check-ins and transparent communication help keep everyone aligned and accountable.
Manage Change and Stakeholders
Fund administration touches many stakeholders, most importantly the Limited Partners (LPs). Change management is key to ensuring confidence and continuity. LPs should be informed early, with clear messaging about why the change is happening, what it means for them and how their experience will improve. This communication should be proactive and personalised where possible. Internally, GPs and finance teams should also be briefed and trained on any new processes or systems. Accordingly, securing stakeholder buy-in and support is crucial. This also involves getting top-level endorsement, communicating the rationale for the change clearly, involving key team members in the transition process, and managing communications with all relevant external stakeholders (this includes auditors, legal counsel, tax advisors, etc.).
Timing Is Important
Choosing the right moment to migrate is essential. Avoid periods of peak activity such as year-end closings, audits or major capital events. Ideally, the transition should occur during a quieter operational window, allowing time for testing and adjustment. Some fund managers align migrations with the start of a new financial year or quarter to simplify reporting and reconciliation. The incoming administrator can help assess the best timing based on fund structure and reporting cycles.
Review, Cleanse, Prepare and Migrate Data
Data migration is one of the most vital parts of the process. Before transferring anything, conduct a thorough review and cleansing of investor records, transaction history and compliance documentation. This ensures that only accurate, relevant data is moved to the new system. The incoming administrator should provide a secure data intake process, often with templates and validation checks. It is also wise to document legacy data formats and mappings to avoid confusion later.
Run in Parallel Before Switching Off
Before fully transitioning, run the accounting systems in parallel for one reporting period. This allows both the outgoing and incoming administrators to produce reports independently, which can then be reconciled for accuracy. A parallel run builds confidence in the new setup and provides a safety net in case any discrepancies arise. It’s a best practice that helps ensure continuity and reliability. Furthermore, investor onboarding and ongoing compliance are part of the manager’s licence to operate. The incoming administrator should perform a sample health check on KYC files to identify any gaps or outdated documentation. This helps to stay ahead of surprises and ensures that compliance standards are met from day one. Where needed, LPs can be contacted to refresh their records, ideally through secure portals rather than email. This step reinforces the fund’s commitment to data protection and regulatory integrity. It is important for the incoming fund administrator to handle this step with care, as LPs will only be engaged if non-compliance is the alternative.
Negotiate Overlapping Fees and Ownership
This section may be unexpected given that the author of this article is a fund administrator active in migrating existing funds. However, during the transition, there may be a period where both administrators are involved. To avoid double-charging, negotiate terms with both parties to minimise overlapping fees. Most administrators are willing to accommodate reasonable requests, especially when the transition is well-managed and clearly communicated.
Apart from fees, it is advised to use a checklist to ensure that ownership of transitional deliverables is assigned and confirmed. For example, if the outgoing fund administrator has prepared the statutory financial statements for the fund, will the new administrator sign those accounts in case preparation happened pre-migration and signing needs to be done post-migration? The same may apply for tax returns and modifying bank account access, to name a few more areas worth having full clarity on.
Conclusion: Changing That Pays Off
Migrating fund administrators is a strategic decision that requires planning and effort. But when done right, it unlocks long-term benefits, better service, improved technology, stronger compliance and happier investors. Doing the switch leads to greater operational efficiency and opens the door to scalability for growth. Just like fixing a leaky roof, the sooner you act, the less damage you’ll face. With the right partner and a structured approach, the transition becomes an investment in operational excellence that pays dividends for years to come. After careful selection, a refreshing fund administrator that truly cares and listens to your needs can make the migration decision a very rewarding one.
At Taru, we help manage the migration project from start to finish. Post migration, we combine robust technology with a team deeply experienced in its application, delivering a solution that’s ready from day one. Our specialists are trained, our processes are refined, and our systems are fully implemented, saving you the time, cost, and complexity of building from scratch. But we don’t stop at technology. We take the time to understand your unique strategy and align our support with your goals. The result is a true partnership, one that enhances operational efficiency, ensures consistency in investor communications, and empowers you to deliver performance with confidence.
