Getting into the funds industry is seen as the Holy Grail for many financial professionals – even seasoned investment bankers from top-tier institutions find it hard to get a foot in the door. This consists of Front Office, Middle Office, and Back Office roles as follows:
Essentially, a fund administrator is an outsourced third-party service provider that protects the interests of investors by independently verifying the assets and valuation of the fund. By outsourcing the fund administration function, fund managers are allowed the freedom to focus on portfolio management internally. Typically, fund administration comprises 3 parts:
Although many responses may be”I prefer buy-side” or “I’m keen for front office roles“, the pace of hiring in fund administration is at an all time high – and it is from here that one can gain a foot-in-door to middle and front office roles. Due to investor demands for greater transparency, regulatory pressures and technological requirements, the industry is experiencing rapid growth, with increasing number of opportunities opening up globally. In fact, according to Funds Partnership statistics, 70% of talent demand comes from fund administration.
Fund administration across different asset classes can differ substantially due the nature of investment activity and can be complex, depending as fund management does it does on strategy, structure and volume. For example, private equity, hedge fund, real estate managers require different services and therefore specialist capabilities are vital to the smooth operation of a fund. Partnering with an independent specialist with true expertise in both the fund’s asset class but also with in-depth knowledge and understanding of the fund’s jurisdictional regulation wherever it may be located in the world can truly impact the success of a fund.
Are you detail-oriented? Do you have a basic understanding of the investment market and accounting? Do you thrive working in a fast-paced environment and are able to meet strict deadlines? Do you enjoy working in a team environment? If the answer to all of these questions is ‘Yes’ then fund administration could definitely be the role for you! Teamwork and collaboration to support all team members particularly during busy month-end periods will be necessary.