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Six Benefits of Outsourcing Real Estate Fund Operations

Written by Amy Pearce | Feb 23, 2024 5:00:00 AM

Between external challenges like high interest rates and empty office space; coupled with operational challenges stemming from increasing regulation and investor demands, many firms are choosing to outsource their middle and back office operations. Outsourcing can alleviate the stress of meeting those demands by providing better data management, enhanced technology and more efficient use of resources. Fund managers gain agility and efficiency by partnering with an experienced administrator and operational services provider while reducing costs and risks. Here we highlight the six benefits of outsourcing your real estate fund operations:

  • Focus on the core business鈥擱eal estate fund managers need to be able to devote their energies and resources to sourcing and vetting opportunities, raising capital and servicing investors.
  • Satisfy investor scrutiny鈥擶ith investors increasingly demanding greater transparency, including the fund鈥檚 ESG commitments, outsourcing provides improved data management for fund managers to meet those demands.
  • Reduce regulatory risks鈥擣und managers need expertise and the right systems to streamline and strengthen regulatory reporting to meet compliance obligations in any jurisdiction where they do business.
  • Leverage outside expertise and workforce stability鈥擮utsourcing is an efficient way to weather talent shortages and access deep expertise.
  • Keep current with technology鈥擣und managers need a robust operational infrastructure to stay competitive, but the rapid rate of technology advancements means that the risk of falling behind is high. Outsourcing shifts infrastructure ownership to the outsourced partner, who should continually invest in advanced technologies like those that use artificial intelligence and intelligent automation.
  • Focus on business expansion鈥擮utsourcing facilitates scalable growth across multiple locations while maintaining consistent corporate governance.

Despite the headwinds in the real estate industry, investors still see real estate funds as an essential component of a diversified private market investment strategy. Real estate fund managers can boost performance by relieving operational pressure through outsourcing.

天美传媒鈥檚 dedicated real estate fund services team has extensive experience in supporting organizations that invest in real estate portfolios. As the world鈥檚 largest fund administrator and transfer agent, we are a leading innovator in technology-powered solutions and operational services for the global investment management industry.

To learn more about the benefits of outsourcing operations to achieve greater efficiency and performance in the real estate investment industry, download our "Rethinking Real Estate Fund Operations" whitepaper.