Deloitte Digest

Richard Gerritsen, European regional sales director of Yardi, was recently featured in an article from Deloitte that focused the rise of the alternative fund industry and the transformation of business operating models. Read the full article by Jovy Therese Otgalon, Senior Manager, Advisory and Consulting, on Embracing Technology.

Key to an operational model redesign is technology, and private equity and real estate companies, accustomed to limited automation, manual reporting and processing, are widely outsourcing functions to reliable third-party service providers, Otgalon writes.

Gerritsen commented that sweeping regulations have driven industry players to refocus attention on internal controls and processes, automation and systems evaluation and how to quickly adapt to meet compliance and transparency requirements.

“Five or six years ago, it was normal to report almost everything in Excel,” he said, “Now, investors require and expect more detailed and automatically generated information, pushing firms to find an appropriate technology platform that would complement their business strategies.”

Larger service firms are perceived as essential business partners, supporting investment firms as they cope with changing industry requirements and offering competitive fee structures. Transforming business operating models is vitally important for firms to remain competitive and thrive.

“What may happen, in the future, is the consolidation of niche and smaller-sized fund administration, transfer agency, tax and reporting service providers in order to achieve the size, capital and scale that would enable them to compete with their larger and more established competitors,” Gerritsen noted.

This article was first published in Performance Magazine – issue 10:  http://bit.ly/15dMhtr Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

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