Funding remains the most daunting aspect for emerging managers. Attracting the attention of investors in a competitive environment remains a challenge.
To support the path to institutionalisation, independent service providers fill an important role, not only from a regulatory perspective, but also from an independence and expertise perspective.
Partnering early with established, reputable organisations regarding non-core activities affords emerging managers credibility and ensures best practice from inception to institutionalisation. This leaves emerging managers to focus on the portfolio management.
When partnering with a service provider, emerging managers should consider:
- which non-core services, when outsourced, will add value to the offering
- will the reputation of the servicing partner lend additional credibility to the offering
- are services offered by the service provider scalable in the long run
- expertise and depth of services of the servicing partner
- the cost and fee structures of the provider
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FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.