Fund Administrators See Big Growth in Private Markets as Institutional Interest Grows

02 Jul

Fund Administrators See Big Growth in Private Markets as Institutional Interest Grows

Private markets general partners continued to adopt third-party fund administration at a rapid clip, which aligns with the overall rising interest in this asset class among institutional investors, according to the just-released 2019 eVestment Alternative Fund Administration Survey. The median respondent grew real assets under administration by +20.64% year-over-year and private equity and debt AUA by +11.35%, according to the survey.

Institutional investors have increasingly turned to alternatives as a means of improving performance and diversifying their portfolios. Fund administrators have stepped in as partners to asset managers as the subsequent demand for institutional quality infrastructure translates into an added emphasis on operational accuracy, flexibility and timeliness.

Other interesting trends highlighted in the new report include:

  • Participating firms reported private equity, hedge fund, real assets, funds of funds and liquid alternatives assets under administration of $10.00 trillion, an increase of +18.78% year-over-year.
  • The funds of hedge funds segment saw a resurgence in 2018 with median participant FoHF AUA growing +10.99% year-over-year. This is compared to +4.13% for median hedge fund AUA growth, one of the lowest readings in recent memory.
  • Fund administrators emphasized the build out of front-/middle-office and data management offerings as a means to servicing more of their clients’ needs and to increasing wallet share.

Learn more about the research and data behind the survey.