THE FUND ADMINISTRATOR: ENABLING FAMILY OFFICE SUCCESS 

With the increasing professionalisation of family offices and an ever more complex regulatory landscape, many principals are looking to onboard niche expertise in the form of a specialist fund administrator – either contracted externally or employed in-house. 

In an increasingly complex investment landscape, our experience shows that engaging a fund administrator can be crucial to the success of many family offices, enabling them to adapt to evolving pressures and constraints and to leverage new technologies and strategies to drive growth.

IN-HOUSE VS EXTERNAL FUND ADMINISTRATORS

The larger or more complex the family office (including multifamily offices), the stronger the business case for in-house, on-demand fund administration expertise – even when retaining an external firm to handle some aspects of the work. In our experience, family offices with one or more of the following structures realise substantial value from directly employing a dedicated fund administrator:

• multiple SPVs or holding companies
• private equity or venture co-investments
• feeder/master fund structures
• offshore entities (Jersey, Guernsey, Cayman Islands, BVI, Luxembourg, etc.)
• real estate portfolios
• trusts with multi-generational beneficiaries

WHERE FUND ADMINISTRATORS ADD VALUE

The role of fund administrator has evolved from a back-office support function into an indispensable strategic partner, with fund administrators providing critical experience and expertise across diverse areas, including regulatory compliance, governance, and digital transformation.

REGULATORY EXPERTISE

Recent regulatory changes, such as the UK’s introduction of a specific corporate criminal offence of “failure to prevent fraud”, or new fines for non-compliance with AML legislation in Jersey, as well as upcoming requirements for comprehensive AML/CFT programs in the USA, mean the need for specialised fund administration expertise to mitigate the risk of penalties is greater than ever. 

GOVERNANCE & TRANSPARENCY

Outsourcing to a fund administrator can strengthen a family office’s governance, enhance transparency, and improve long-term stability across generations. By providing independent oversight, the fund administrator ensures accuracy and freedom from bias or conflict of interest in data, calculations, and reporting, helping to maintain trust among family members, beneficiaries, and partners.

TECHNOLOGY AND DATA

Emerging AI tools promise to reduce manual data entry and accelerate the reporting cycle significantly – streamlining tasks such as data aggregation and validation, extracting and normalising usable data from unstructured sources, and reporting via investor portals and real-time dashboards. Engaging a technically adept fund administrator to introduce these tools can help family offices transition to a dynamic reporting environment that aligns with sector best practices.   

EVALUATING YOUR NEED

Selecting a fund administrator is a critical strategic decision. A thorough, structured due diligence process is essential to ensure the chosen partner aligns with the family office’s needs and to avoid a failed transition. For family office principals considering their options in terms of fund administration support, there are a few practical steps you can take to determine your requirements and inform your search for the right candidate, as well as assessing the ROI of employing someone in-house or outsourcing the role.

• Track the time your team spends on manual data entry, reconciliation, and report generation
• Look at current admin costs as a percentage of AUM – and benchmark against your office size and structure
• Review which new or upcoming regulations apply to your location, structure and entity type
• Assess your current systems for any data aggregation or cybersecurity gaps
• Document who in your office handles investment decisions versus who handles accounting, reporting, and compliance – and any gaps or conflicts.

This should help you develop a scorecard of the key attributes and skills your office requires from a fund administration professional and any specific areas of focus – for example, balancing technical knowledge against regulatory experience. 

LOCATING AND ATTRACTING NICHE TALENT

Finding the right fit for a family office fund administration role can be challenging – candidates need to combine the necessary regulatory and technical experience with the soft skills needed to work effectively within a family office setting. Working with a specialist partner like Victus Search gives you access to a wider talent pool – including candidates not actively seeking a move – and the opportunity to approach best-fit professionals through a trusted network. 

If you’re currently looking to onboard specialist fund administration talent, our advisors can help you define the role and locate the right professional for a precise skills and culture fit. Contact us today for an initial consultation in full confidence.