Launching your fund on the proper platform

The infrastructure needs to be scalable to accommodate escalating transaction volume and asset growth.

And it needs to be able to support complex fund structures and strategies.

Most importantly, the systems should be backed by global service and support and kept up to date with regular upgrades.

Moreover, they should have a roadmap to the future, in which cloud-based services and mobile accessibility are expected to become the norm.

Institutional investors and their consultants perform rigorous, ongoing due diligence on fund managers, with operations a key focus of their inquiries.

To tap into this critical source of funding, you will need to be on a platform that can stand up to the most intense scrutiny.

The importance of superior technology cannot be emphasized too much. Funds in the billions of dollars have been known to fail, not because of bad trades or market forces but because of inadequate infrastructure and administration.

Another important consideration is disaster recovery and business continuity. Ask prospective platform provider how they plan to protect your fund and investor data in the event of a disaster.

As you review a platform provider's services, find out which are performed in-house and which are being outsourced.

It is not uncommon to have some services farmed out to specialists. However, certain aspects of your business - risk management, for example - are too important to be taken outside.

Beyond that, what is the provider willing to do to help you launch successfully and stay afloat?

Do they provide capital introduction services?

Do they have connections with investors?

Will they even help you prepare your presentations?

The proper platform, one that handles both your fund administration and your business administration, should ultimately give you a better chance of gaining traction and attracting more capital.

It will allow you time to travel and meet investors. It will provide the infrastructure and risk controls investors expect.

And it will allow you to focus on analyzing opportunities and making decisions - the reasons you decided to launch a fund in the first place.

Steve Bernstein is chief executive officer of SinoPac Solutions and Services Ltd, and Todd Gottula is executive vice-president and chief technology officer of Advent Software Inc.

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