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Fund administrators see big growth in private markets as institutional interest grows, says eVestment

Private markets general partners have continued to adopt third-party fund administration at a rapid rate, which aligns with the overall rising interest in this asset class among institutional investors, according to the 2019 eVestment Alternative Fund Administration Survey. 

The median respondent grew real assets under administration by +20.64 per cent year-over-year and private equity and debt AUA by +11.35 per cent, 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.
 
The eVestment Alternative Fund Administration Survey represents the current state of the global alternative investment fund administration industry and includes information from firms across the spectrum of size and services offered. The 2019 Alternative Fund Administration Survey marks the 19th edition of the survey to date.
 
Participating firms reported private equity, hedge fund, real assets, funds of funds and liquid alternatives assets under administration of USD10.00 trillion, an increase of +18.78 per cent year-over-year.

The funds of hedge funds segment saw a resurgence in  2018 with median participant FoHF AUA growing +10.99 per cent  year-over-year. This is compared to +4.13 per cent for median  hedge fund AUA growth, one of the lowest readings in recent memory.

Fund administrators emphasised 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.

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