Analysis
Co-Sourcing with Alter Domus: A Custom Approach for General Partners
Alter Domus understands that every General Partner has unique operational needs, which is why we offer tailored co-sourcing strategies to enhance efficiency and maintain control. Our expertise allows clients to focus on strategic growth while we manage execution and ensure regulatory compliance.
In the dynamic landscape of private markets, every General Partner (GP) has unique operational needs and preferences. At Alter Domus, we understand that a one-size-fits-all model simply doesn’t work. Instead, we adopt a consultative approach, collaborating with each client to define a co-sourcing strategy that aligns with their specific requirements.
Whether it’s supporting a single process like Annex IV reporting or managing full fund accounting cycles within the client’s infrastructure, our flexibility ensures that we meet diverse operational contexts.
Here are some examples of how we empower GPs through customized services and expertise:
Typical Capabilities Include:
- Fund Accounting: We prepare books and records using the client’s technology platform, with workflows designed for dual review and sign-off.
- Capital Activity: We calculate and format capital calls, distributions, and notices, while clients retain approval rights and manage LP communications.
- Regulatory Reporting: Our teams collect, map, and format data to comply with evolving local and cross-border obligations.
By partnering with us, internal GP teams can concentrate on oversight and strategy, while our dedicated professionals manage execution within a clearly defined control framework.
Making the Shift: Practical Considerations:
Transitioning to a co-sourcing model doesn’t mean overhauling existing systems or starting from scratch. With years of implementation experience, we guide clients through a structured transition focused on clarity, integration, and flexibility.
Through our extensive work with clients, we’ve identified three key building blocks essential for unlocking the full potential of a co-sourced operating model:
1. Define the right scope: We pinpoint operational areas under pressure, such as:
- Fund closings and reconciliations
- Capital statements and investor notices
- Data preparation for regulatory reporting
- Waterfall modeling and fee recalculations
2. Maintain System Continuity: Clients keep their platforms while we securely integrate into their ecosystem, ensuring a single source of truth and avoiding fragmentation.
3. Establish Strong Governance: We align with each client’s compliance and oversight model, ensuring clear roles, documentation, and audit trails. Managers retain ultimate responsibility, while our teams execute defined workflows according to agreed service-level agreements (SLAs).
Figure 1 – The Benefits of Co-Sourcing with Alter Domus
| Benefit | How it Helps |
|---|---|
| Internal Oversight | Control over systems, data, policies, and approval processes remains in-house |
| External Execution | Alter Domus executes defined tasks at scale, with speed, accuracy, and rigor |
| Data Ownership | Clients maintain full ownership of their infrastructure and data environment |
| Regulatory Readiness | Respond to changing rules with agile support and specialist knowledge. |
| Investor Responsiveness | Meet LP reporting demands faster and more consistently. |
| Operational Scalability | Expand or contract support without internal hiring constraints. |
| Access to Talent | Tap into deep experience across private equity, private credit, and real assets |
Co-Sourcing: A Model for Long-Term Resilience
For private markets managers, operational resilience transcends mere business continuity; it’s about forging systems and partnerships that can adapt and thrive in an increasingly complex environment. Co-sourcing provides the perfect balance: the stability of internal oversight combined with the executional strength of a specialist partner.
At Alter Domus, we view co-sourcing as a strategic decision rather than just a service model. It empowers asset managers to focus on what truly matters: creating value for investors, meeting regulatory expectations, and growing with confidence.
If you’re reevaluating your operating model or exploring how co-sourcing could enhance your structure, we’re here to assist. Alter Domus has extensive experience supporting transitions of all sizes and complexities—whether you’re managing a single strategy or scaling across jurisdictions.
Ready to transform your operating model?
Our consultative model allows you to define the scope of support that best fits your unique operational needs, whether it’s fund accounting, capital activity, or regulatory reporting.
By maintaining system continuity and establishing strong governance, we empower your internal teams to focus on strategy while we handle execution efficiently.
Experience the benefits of enhanced operational resilience, regulatory readiness, and access to deep industry expertise.
Contact us today to explore how co-sourcing can elevate your business.
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