According to
a survey by CFA Institute, the hedge fund market is expected to grow by 31% in
the next 5 years. Hedge funds no longer belong to alternative asset class due
to the newfound interest amongst masses. The increased popularity of hedge funds
amongst investors and a rise in regulations for the same has made hedge fund
management profitable and risky at the same time. People tasked with managing
hedge funds are looking for alternatives to ease the pain in their day to day
operations. This is the main reason why they are looking for back
office outsourcing services provider who are good at hedge fund
management.
What to Look for in a Vendor before Hedge Fund Back Office Outsourcing?
Hedge fund
management is a typical task and requires considerable expertise. As you are
dealing with huge amount of money on daily basis, the scope of making mistakes
is not-existent. To ensure that the assets are looked after appropriately, one
should partner with a vendor that has the following capabilities:
1. As hedge funds
consist of products that are not traded publicly, one requires the services of fund
managers who are capable of providing a transparent evaluation policy that
addresses the concerns of the various investors.
2. The vendor
should be able to manage complex portfolios that include latest fund
structures. As the modern-day portfolios are a lot more sophisticated than the
ones found in other investment services like mutual funds, it becomes vitally
important that your vendor is abreast of the latest developments taking place
in the finance world.
3. Tax
compliance is an integral part of hedge fund back office outsourcing. Any mistake in managing the compliance work can
have serious repercussions. This is the main reason why you should look for
experienced hedge
fund back office outsourcing companies that have good credibility and
are sincere in their work.
4. Managing
investor relations is a cumbersome task that needs to be performed diligently.
In case, you are unable to perform this service by yourself, outsourcing
back office can be a great option.
5. Above all,
you should choose an office
services outsourcing vendor who is good at customer relations, He
should be able to perform tasks like taking requests from shareholders, analyze
them and provide recommendations.
Partnering with an Experienced Hedge Fund Outsourcing Vendor
Outsourcing
hedge fund management requires you to send a lot of business-sensitive
information to your partnering vendor. Giving away critical information to just
about anyone is not ideal. This not only puts your business at risk, it also
puts your customers’ vital assets in danger. Therefore, you should partner with
a hedge fund back
office outsourcing provider like Vcare to ensure that the information
remains safe at all times. Also, an experienced vendor will provide you access
to cutting-edge accounting tools, which will make your work systematic and
efficient. This will allow you to focus more on your core tasks and there will
be no burden on you to interact with customers’ on day-to-day basis. A win-win
situation for all.
