For fund managers looking to grow, refining operations is crucial. When systems are already in place, the focus shifts to simplifying processes and improving efficiency. By honing in on a few key areas, fund managers can create a smoother, more sustainable operation. Here are five smart ways to enhance fund operations:
1. Set Clear KPIs
Establishing measurable goals, or KPIs, across key areas like reporting, data quality, valuations, and compliance helps fund managers keep a finger on the pulse of operations. Clear KPIs provide a snapshot of what’s working and where adjustments may be needed, helping to ensure that the fund consistently meets industry standards and investor expectations.
2. Balance In-House and Outsourced Resources
Finding the right mix of in-house and outsourced work can drive efficiency. Specialized tasks—such as valuation and reporting—can often be handled more effectively by an external partner, allowing internal teams to focus on core activities. It’s important, though, to view these partners as part of the team rather than as outsiders. By integrating them closely, firms maintain flexibility without compromising quality.
3. Choose the Right Technology
In today’s environment, using the right technology is essential for streamlining fund management. Automating data processes and providing transparent reporting for investors are just a couple of areas where tech can make a difference. Fund managers have two options: either invest in technology themselves or partner with a fund administrator that already has robust tech systems in place. The goal is to save time on repetitive tasks and free up teams for strategic decision-making.
4. Build a Collaborative Culture
A culture that encourages teamwork—especially between deal teams and finance—can help drive efficiency and create a strong foundation for success. By fostering a collaborative approach, everyone involved, from internal teams to external partners, remains aligned with the fund’s values and goals. This creates a cohesive environment that supports smart, informed decision-making.
5. Partner with the Right People
Choosing the right partners is essential to building efficient operations. When evaluating potential fund administrators or service providers, it’s important to look for alignment in values and objectives. As the fund’s needs evolve, reassessing these partnerships ensures they continue to support both immediate and long-term goals.
Keeping an Eye on Improvement
While it’s essential to master the basics, it’s just as important to stay open to improvement. By encouraging cross-functional teamwork and leveraging new tools, fund managers can identify areas for growth. A team approach, where fund managers and administrators work together, promotes a more flexible, resilient operation.
By focusing on these five areas—clear goals, balanced resources, smart technology, collaborative culture, and the right partnerships—fund managers can create an operation that’s efficient, scalable, and ready for the future.
At Taru, we offer fund administration services built on forward-focused technology and exceptional client service. We are a team of fund administration specialists passionate about redefining fund administration, backed by a reputable independent and global firm.
