In today's ever-changing investment landscape, fund managers often struggle with the unknown complexity of investor onboarding and satisfying many of the ongoing investor administration tasks and one-off demands, including those related to AML/KYC requirements, investor portal questions, funding of capital events and reporting on fund performance metrics.
That is why when it comes to choosing the right fund administrator to work with, fund managers should look for an expert third-party that understands the importance of investor relations and the challenges that many fund managers face, providing them with the industry expertise and best practices needed to be successful in the investor arena. The right fund administrator can help fund managers ensure their investors are ready to fund the first deal, whilst also providing recommendations to ensure future funding rounds close quicker, more cleanly, and with fewer redundant questions.
How to pick the right fit? If you want to find the best fund administrator to work with in a long-term partnership, then it is important to prioritise looking for the right skill set, expertise, knowledge and, critically, the individual team personnel who will be doing the work. Cost is always a consideration, but making that the number one factor rarely ends up with either side being satisfied.
In recent weeks we’ve onboarded a number of new clients that I’ve been speaking to over the course of this year and I’ve really noticed how much our hands-on, people-focused and tailored approach has helped them deal with their individual challenges, enabling them to close their fund and capitalize their first portfolio transaction. Technology is of course important, but this is still a people business, as the recent examples below show.
Streamlining the Investor Boarding Experience
Challenge #1: A new client, with limited investor services operational experience needed help to onboard new investors, pass AML/KYC, and ensure all the qualifications were met for the initial funding timeline.
Solution: We provided daily investor updates and arranged guidance materials to educate the manager on various critical milestones for investor onboarding. We also prepared investor specific materials including videos to educate the manager, and help them identify and eliminate investor onboarding roadblocks before they arise, such as missing wire instructions, missing signatures and incomplete beneficial owner information if they were investing through a trust.
Spotting and Rectifying Mistakes
Challenge #2: A new investor attempted to fill out the LPA, but there were numerous mistakes which would have stalled the fund’s first investment if they weren’t addressed in near real time.
Solution: Our investor services experts followed up with the LP within 24 hours to rectify mistakes, make the needed adjustments and provide all outstanding supporting documents. With the fund manager, our experienced team also highlighted the exact sections of the LPA to update with legal counsel to stop the errors happening again in future. The firm had plans to launch another fund and wanted to leverage many of the base elements from the initial LPA along with the suggested changes.
Delivering Prompt, Accurate and Adaptable Service
Challenge #3: A new client’s largest investor needed to update their allocation and the entities which they wanted to invest through, a day before funding was due.
Solution: We understood the importance of making everything as easy as possible for this key investor. We immediately arranged a call with the family office that the investor was investing through, highlighted the required changes, provided the needed forms to be completed, and walked them through all the steps.
Enhance Your Investor Relations with Trident Trust
Trident Trust is a trusted partner for those looking to establish and maintain strong investor relationships. We have a proven track record and ability to guide clients through complex processes, empowering fund managers to establish strong investor relationships, building trust, and ensuring long-term retention of investors.
To explore what a dedicated fund administration firm can do for you, please contact me at dsmith@tridenttrust.com.