Benefits of Third Party Adminstration

As the hedge fund industry grows and matures, an increasing number of investment managers are turning to third party administrators to manage the operational and administrative aspects of their fund. A third party administrator will provide fund and investor accounting and many client service related functions. Some of the benefits of outsourcing fund administration functions include:

• Increases investor confidence with regard to valuations and safety of investor capital
• Enables the fund manager to focus on investment activities
• Improves efficiency
• Reduces expense
• Access to state of the art accounting and reporting systems
• Work is performed by experienced industry specialists
• Scalability enables rapid increases in assets
• Outsourced functions are typically paid by the fund rather than the General Partner