Research - JANUARY 23, 2024

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Alternative fund managers navigate outsourcing challenges

by Kali Persall

Alternative fund managers are increasingly outsourcing for their key services — a trend that is expected to continue, according to new research from Ocorian.

Budgets for outsourced services such as regulation and compliance have increased in recent years, and 99 percent of private equity, venture capital and real estate fund managers questioned in the study plan to ramp up their outsourcing efforts during the next three years, according to Ocorian. Furthermore, 46 percent plan to increase the level of outsourcing by between 25 percent and 50 percent.

However, 10 percent of those surveyed said service levels provided by outsourcers are often poor and outsources are not delivering on problem solving. Critics attribute this less-than-desirable performance to poor responsiveness, a limited scope of service, technology issues and poor onboarding. Some fund managers also take issue with the level of expertise of outsourcers.

As a solution, many fund managers are aim

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