By Joe Patellaro
In part 1 of this series, we talked about how today’s private equity firms are increasingly focused on transparency and the current regulatory environment. Here, we examine what respondents say about asset class growth.
As asset classes continue to grow, 40 percent of respondents predict that credit and 35 percent predict that buyout/VC will be the top investment strategies spurring private equity growth in the year ahead.
As an influx of capital lifts the overall assets under management, firms will require significant investment in people and technology to stay competitive. However, just 18 percent of respondents anticipate human capital management will have a major impact on the future of private equity in the year ahead.
For small managers, an investment in human capital can slow down their growth. Outsourcing this work to an administrator provides immediate scalability.
Larger managers also recognize the virtues of outsourcing to administrators as their organizations become increasingly complex and diverse. A number of these managers are adopting hedge, credit, and other new strategies, which leads to blurred lines between asset classes.
As investors and regulators look for additional independence of fund accounting and reporting activities, there has been an uptick in the use of third-party fund administrators.
“A growing number of private equity organizations look to third parties such as SS&C to procure fund administration, operational, performance, investor reporting, regulatory, and other services,” says Joe Patellaro, managing director, SS&C GlobeOp private equity services.
“As the world’s largest fund administrator, we offer a unique combination of world-class service, expertise, and technology to meet this growing demand for complex solutions,” he continues. “We are well positioned to be a long-term partner for the industry’s continuously evolving needs.”
SS&C provides investment and financial software-enabled services and software to the global financial services industry. Since 1986, SS&C has helped thousands of big and small financial services organizations manage and account for their investments.