Property Companies (PropCos) represent a fundamental structure within real estate investment landscapes across Europe. These dedicated entities are designed to hold, manage, and optimise real estate assets, creating a clear separation between property ownership and operational activities.

Real estate remains one of Europe’s most complex asset classes, presenting unique challenges that extend far beyond simple property ownership. In 2023, Europe concentrated nearly 21% of real estate assets under management by investment managers globally, highlighting its significance in the international investment landscape.Real estate remains one of Europe’s most complex asset classes, presenting unique challenges that extend far beyond simple property ownership. In 2023, Europe concentrated nearly 21% of real estate assets under management by investment managers globally, highlighting its significance in the international investment landscape.

The intricate tapestry of varying regulatory frameworks, accounting standards, and market practices across European jurisdictions creates a multi-dimensional administrative challenge that even seasoned investment professionals find daunting.

In this article, you will explore the key challenges and benefits of outsourcing real estate administration in Europe, providing valuable insights for investment managers navigating this complex landscape

Key Challenges in European Real Estate Administration

1. Regulatory Complexity

The European real estate landscape is characterised by its regulatory diversity, with each jurisdiction maintaining distinct frameworks governing property ownership, management, and taxation. For instance, German real estate regulations differ substantially from those in France or Spain, with unique requirements regarding property registration, tenant rights, and corporate governance.

Multiple GAAP requirements further complicate the picture. While some jurisdictions adhere to IFRS standards, others maintain country-specific accounting practices. IFRS emphasises that global standards provide transparency, accountability, and efficiency to financial markets around the world, but implementation varies significantly across Europe.

2. Real Estate Accounting Complexities

eal estate accounting presents unique challenges that extend beyond standard corporate accounting practices. Asset-level income and expense treatment requires detailed tracking and allocation, particularly for mixed-use properties or those with multiple tenants.

Tenant incentives and service charge management add another dimension of complexity. The proper accounting treatment of rent-free periods, tenant improvements, and service charge reconciliations requires specialized knowledge and careful documentation. These elements can significantly impact financial performance metrics and must be handled with precision.

3. Asset Diversity Management

European real estate portfolios often encompass diverse asset types, each with unique administrative requirements. Residential, commercial, and industrial properties present distinct challenges in terms of tenant management, maintenance requirements, and regulatory compliance.

Strategy-specific accounting requirements further complicate the picture. Core, value-add, and opportunistic investment strategies each present unique accounting challenges, from capitalisation policies to performance metric calculations. PropCo administrators must tailor their accounting approaches to align with the specific investment strategies being employed.

4. Property Manager Coordination

Effective PropCo administration requires seamless coordination with property managers who oversee day-to-day operations. This coordination is complicated by the diverse property management systems used across Europe, each generating data in different formats and with varying levels of detail.

Reconciling inconsistent reporting formats represents a significant challenge. Property managers across different European jurisdictions often employ localized reporting templates and methodologies.

The transition from cash to accrual accounting presents another coordination challenge. While property managers typically focus on cash-based operational metrics, PropCo administrators must convert this information to accrual-based accounting for financial reporting purposes.

5. Cross-Border Reporting Challenges

PropCo administrators managing pan-European portfolios face significant reporting challenges. Converting local GAAP financial statements to group-level reporting standards requires specialised knowledge and careful reconciliation. This process is particularly complex for portfolios spanning multiple jurisdictions with divergent accounting practices.

Timeline coordination with diverse local teams presents logistical challenges. Different reporting timelines, holiday schedules, and business practices across European jurisdictions can complicate the consolidation process.

PropCo administrators must develop efficient coordination mechanisms to ensure timely, accurate reporting despite these variations. Maintaining compliance across jurisdictions requires vigilant monitoring of regulatory changes.

6. Language and Communications Barriers

The multilingual nature of European real estate markets introduces documentation management challenges. Property-related documents, contracts, and regulatory filings may be in various languages, requiring translation and interpretation for effective administration. This multilingual environment increases the risk of misunderstandings and administrative errors.

Legal and financial terminology varies significantly across European jurisdictions, even when using the same language. These variations increase the risk of misinterpretation, particularly in complex contractual or regulatory contexts. PropCo administrators must navigate these linguistic nuances to ensure accurate interpretation and implementation.

Benefits of Outsourcing Real Estate Administration

1. Specialized Regulatory Expertise

Outsourcing PropCo administration gives you access to jurisdiction-specific expertise that would be painfully expensive to build in-house. Professional administrators have teams who know the ins and outs of multiple European jurisdictions, helping you navigate complex regulatory landscapes with confidence.

This expertise significantly cuts your compliance risk. With professionals keeping a watchful eye on regulatory changes across European markets, you’re less likely to face penalties or operational hiccups due to compliance oversights.

2. Real Estate-Specific Knowledge

Professional administrators excel at turning complex asset performance data into meaningful accounting metrics. They understand both the operational realities of real estate and the accounting principles needed to report accurately.

They’re also invaluable for transaction management. Their deep knowledge of real estate deals—from structuring acquisitions to planning dispositions—means more efficient transactions and better tax positioning.

Perhaps most importantly, they provide strategic financial insights that transform administrative work from a cost burden into a value driver, helping investment managers spot opportunities that might otherwise go unnoticed.

3. Data Quality and Reporting Enhancements

Third-party fund administration providers bring consistency to your data. Their standardized collection processes across different property types and jurisdictions ensure reliable information for meaningful portfolio analysis.

You’ll gain deeper performance insights, too. With their market experience and specialised tools, administrators uncover hidden performance drivers and improvement opportunities. Better data leads to smarter decisions.

4. Cost Efficiency Benefits

Outsourcing slashes administrative overhead. No need to build and maintain specialist teams across multiple jurisdictions. It’s a fixed-cost reduction that matters.

Professional administrators deliver higher quality at lower cost. They leverage economies of scale and specialized expertise across multiple clients efficiently. But the biggest win is that investment managers can refocus on what truly matters: deal sourcing, investment strategy, and investor relations.

5. Scalability Advantages

Professional administrators adapt seamlessly to changing portfolio sizes and compositions—crucial in dynamic investment environments where portfolios shift through acquisitions and dispositions.

As your portfolio grows, complexity doesn’t mean proportionally higher costs. This scalability gives outsourcing a significant edge over in-house functions, which typically require substantial resource increases to handle growth. Your administrative support grows with you, without the growing pains.

Conclusion

Managing European real estate entities presents significant challenges due to complex regulations, accounting practices, and cross-border coordination requirements.

Outsourcing administration to experienced real estate fund service providers delivers critical advantages in compliance expertise, operational efficiency, and scalability. By partnering with a professional administrator, investment managers can free resources to focus on deal origination, portfolio strategy, and value creation.

As the European real estate market evolves, effective PropCo administration becomes increasingly important as a competitive differentiator. Investment managers who recognize this function’s strategic importance will be better positioned to navigate complexities, optimize structures, and deliver superior investor value in this challenging sector.

CFOs and COOs in private markets face a growing challenge: meeting investor demand for access and yield while safeguarding operational resilience. Structured vehicles — particularly Collateralized Fund Obligations (CFOs) and Rated Note Feeders — have become powerful tools for broadening distribution and optimizing capital structures.

But with opportunity comes operational and governance complexity. The question is not only whether these vehicles can be launched, but whether they can be run with the rigor investors, auditors, and regulators now expect. The answer often hinges on the choice of the collateral and fund administrator — and whether they can provide the control, transparency, and scalability leadership teams require.

Collateralized Fund Obligations (CFOs)

CFOs transform pools of private market fund interests into multi-tranche vehicles, offering investors differentiated risk-return options. For CFOs and COOs, they bring both opportunity and exposure.

Operational Issue	How the Right Fund Administrator Solves It
Complex Waterfalls	Errors in multi-tranche allocations can result in misstatements that damage investor trust. Administrators with automated waterfall engines provide accuracy, control, and audit-ready assurance.
Complex Waterfalls SPV and Jurisdiction Complexity	Managing multiple SPVs across borders strains finance teams. Experienced administrators centralize multi-jurisdiction activity into coherent reporting, reducing risk and inefficiency.
Transparency Pressure	Investors demand real-time tranche-level performance. Without it, credibility suffers. Leading partners deliver dashboards and tailored reporting that reinforce confidence.
Liquidity Interdependencies	Stress in one tranche can ripple across the structure. The best administrators use stress-testing and liquidity modeling to give executives foresight into risks.
Regulatory and Audit Scrutiny	Errors invite prolonged audits or regulatory intervention. Administrators with robust compliance frameworks help CFOs and COOs demonstrate institutional-grade governance

Rated Note Feeders

Rated Note Feeders offer a scalable way to open private market strategies to yield-seeking institutions such as insurers. But they bring challenges that land squarely on the desks of CFOs and COOs.

Pitfall	How the Right Fund Administrator Solves It
Cash Flow Matching	Liquidity gaps between fund distributions and feeder obligations can create reputational risk. Administrators with real-time reconciliation systems prevent mismatches and protect investor confidence.
Interest Rate and FX Risk	Manual oversight of accruals and currency flows risks financial misstatements. Strong partners automate interest and FX processes, delivering control and accuracy.
Investor Reporting	Yield-focused investors and ratings agencies demand consistency. Administrators provide timely, investor-grade reports, ensuring alignment with external expectations.
Regulatory Complexity	Cross-border feeders invite compliance scrutiny. Administrators with multi-jurisdictional expertise help executives demonstrate governance and avoid regulatory missteps.
Operational Bottlenecks	Manual reconciliations and covenant monitoring tie up finance teams. The right partner uses automation and scale to streamline operations and free resources.

Alter Domus: Our structured vehicle expertise  

For finance and operations leaders, the choice of fund administrator is ultimately about control, credibility, and scalability. The strongest partners bring depth of expertise in structured vehicles like CFOs and rated feeders, combined with breadth across the wider private markets ecosystem — commingled funds, co-invests, SMAs, and SPVs. This breadth matters: it allows CFOs and COOs to consolidate providers, reduce operational fragmentation, and ensure consistent governance across all fund types.

The right administrator also provides confidence that every process — from cash allocation to reporting — can withstand investor, auditor, and regulatory scrutiny. They invest in technology to minimize manual intervention, deliver transparency that strengthens investor relationships, and act as proactive partners in anticipating risks before they materialize.

CFOs and COOs today are not simply managing back-office operations; they are responsible for safeguarding investor trust and enabling their firms to scale. Structured vehicles such as CFOs and Rated Note Feeders magnify both the opportunity and the operational risks of private markets.

Why consider outsourced fund administration

As a COO or CFO of a wealth manager, multi-family office, or OCIO, you carry a responsibility that extends well beyond numbers. You’re not just managing books—you’re safeguarding a family’s legacy, ensuring operational resilience, and giving principals the confidence that their capital is stewarded with precision. That mandate has only grown more complex.

Expanding into direct deals, private credit, real estate, and cross-border structures means you’re expected to deliver institutional-grade reporting, governance, and controls—often with lean teams and finite resources. It’s a balancing act: meeting rising operational demands while protecting the office’s agility and focus. This is exactly where an outsourced fund administration model becomes invaluable.

Why outsourced fund administration fits the wealth manager, multi-family, and OCIO office model

Outsourcing isn’t about relinquishing control—it’s about fortifying your operational backbone so that you can focus on higher-value work. A trusted fund administrator brings:

• Accuracy and independence – Third-party validation of NAVs, cash flows, and performance ensures credibility with stakeholders.
• Scalability – As the family invests in new strategies or regions, outsourced infrastructure flexes with you.
• Technology advantage – Purpose-built platforms for data management, accounting, reporting, and investor visibility—without the heavy lift of implementation or maintenance.
• Efficiency – Offloading data feeds, document management, reconciliations, financial preparation, audit management, and compliance tasks frees your time for strategic planning and governance.
• Credibility – Enhances your standing with advisory clients, auditors, partners, and institutional co-investors by demonstrating best-practice operations.

What sets Alter Domus apart as an outsourced or co-sourced solution

For COOs and CFOs of wealth managers and multi-family offices, partnering with Alter Domus means strengthening your operational backbone without losing control. Our model is built to meet the rising demands of complex investment offices while safeguarding the agility and stewardship your principals expect.

• Knowledgeable staff – Our teams bring deep experience in IBOR and ABOR reporting, as well as NAV calculation, cash flow management, and investor reporting. Whether working within our licensed systems or those licensed by your firm, we ensure that operations run smoothly and in full compliance.
• Service level agreements: We commit to aggressive SLAs that ensure timely, accurate posting of data across portfolios, enabling you to meet reporting deadlines with confidence. That reliability frees your office to focus on value-add initiatives like strategic allocations, family governance, or new market entry.
• Thought leadership: We don’t just administer funds; we help shape back-office strategy. Our specialists assess your operational set-up and advise on process redesign, technology choices, and efficiency measures – helping you protect long-term advisory fees and build resilience as your family office grows in complexity.
• Built for alternatives: Alter Domus was created to serve private capital. From private equity and venture to private debt, infrastructure, and real estate, we understand the nuances of alternative assets and how to integrate them into family portfolios. That expertise ensures your reporting, governance, and investor communications reflect institutional-grade standards.
• Global scale with local relevance: With more than 6,000 professionals across 23+ jurisdictions, Alter Domus delivers the reach and regulatory expertise of a global leader. Crucially, we know how to apply that scale to the needs of smaller wealth managers and multi-family offices—bringing institutional-grade processes, controls, and insights to leaner teams without overburdening them.
• Technology advantage: Our purpose-built platforms reduce manual processing, harmonize data feeds, and deliver investor-ready reporting. For offices running lean teams, this alleviates the burden of system implementation and ongoing maintenance, while ensuring transparency and auditability.
• Operational assurance: From capital calls and waterfall allocations to audit coordination and compliance checks, we provide institutional-grade rigor. That strengthens your credibility with auditors, trustees, and co-investors—key for offices balancing family dynamics with professional governance.
• Flexible engagement models: Whether you want a traditional outsourced solution, a co-sourced arrangement where you retain data ownership, or even a lift-out of existing in-house teams, Alter Domus tailors its approach to preserve continuity while enabling scale.

What this means for COOs and CFOs

As a COO or CFO, you sit at the heart of your company’s success. You’re tasked with ensuring both operational excellence and strategic foresight. We see what your peers are doing and understand which processes work.

In today’s complex landscape, outsourcing fund administration is not about giving up responsibility—it’s about giving yourself the tools, expertise, and confidence to meet the family’s needs today and for generations to come.

Credit markets have entered a phase of rising complexity. Competitive pressure, evolving regulatory requirements, and increasing operational demands now make an efficient, robust middle office infrastructure a strategic imperative for private markets managers.

Since the height of post-crisis bank retrenchment, private credit and broadly syndicated loan (BSL) markets have filled much of the gap. Managers today are working with increasingly intricate structures—unitranche, hybrid financings, NAV loans, leveraged loans with complex covenant packages—each of which places heavier demands on operations. At the same time, investor expectations around speed, transparency, and data consistency are higher than ever.

Drivers of complexity

• Shorter settlement cycles and tighter turnarounds. U.S. markets have already transitioned to T+1 settlement, compressing reconciliation, trade capture, and cash settlement timelines. Delays or errors are far less forgivable in this environment.

• Regulatory and disclosure pressures. ESG reporting, borrower-reporting requirements, increased focus on transparency, and heightened regulatory oversight are placing new burdens on middle offices.

• Volume and diversity of instruments. Managers are handling more deals per year, across more jurisdictions, with different structures—unitranche, participation interests, hybrid debt, multiple servicer arrangements—each introducing unique reconciliation and risk-management challenges.
• Fragmented systems and manual workflows. Silos across front, middle, and back offices, inconsistent data feeds, and lack of real-time visibility multiply operational risk. Duplicate work, delayed reporting, and mismatched data remain common pain points.

What effective middle office support looks like

To manage this complexity without ballooning costs or risk, many firms are partnering with specialist providers offering scalable, tech-enabled middle office services. Effective support often includes:

• Loan and Agency Services — Full loan accounting, agency or sub-agency responsibilities, servicing of covenant and structural tests, notices, interest and principal payments.
• Monitoring and Reporting — Harmonizing borrower data, standardized and bespoke reporting (financial, ESG, compliance), custom dashboards, regulatory disclosures.
• Trade Capture and Settlement — Ensuring trades are captured accurately, settled on time, correct counterparties engaged, complex or distressed trades handled properly.
• Technology Integration and Automation — Proprietary platforms and data pipelines that reduce manual touchpoints, maintain an auditable “golden copy” of loan data, and support cross-jurisdiction operations.
• Process Design and Risk Management — Workflow standardization, reconciliation procedures, audit controls, error mitigation practices, and alignment of operating models with regulatory expectations.

Why it matters strategically

In 2025, the middle office is no longer just about cost efficiency—it is about operational resilience, competitive differentiation, and investor trust. Firms unable to keep pace with settlement, reporting, or regulatory expectations risk lost deals, higher costs, reputational damage, or worse.

A strong middle office backbone allows credit managers to focus on what they do best: sourcing, underwriting, and structuring. Meanwhile, operations can be confident that deals are administered, data is reliable, and risks are identified early.

Alter Domus: a proven operational backbone

Alter Domus combines scale, expertise, and technology to help managers meet these challenges head-on. With a global team of 6,000 professionals across 23 jurisdictions, we bring consistency across time zones and markets. Our role administering more than $3.5 trillion in assets reflects both the trust placed in us by leading credit managers and our ability to deliver at scale. Beyond the numbers, what truly sets Alter Domus apart is the strength of our integrated platform: proprietary technology, deep market knowledge, and a service model designed to simplify complexity and give managers confidence in their operations.

Have you ever wondered who ensures a company maintains its good standing while navigating the complex landscape of corporate governance? That’s where a company secretary comes in—a strategic position responsible for ensuring that a company complies with various statutory and regulatory requirements while playing a central role in the smooth administration of a company entity.

The company secretary is an organization’s governance pillar, a role that is frequently misunderstood as solely administrative but actually includes significant strategic responsibilities. With the increasing focus on corporate governance, the company secretary is considered the guardian of the company’s compliance with both good governance practices and the law.

Think of the company secretary as the invisible force that keeps the corporate machine running smoothly, ensuring board meetings happen on schedule, statutory filings are submitted on time, and shareholders stay informed about company affairs.

The Three Pillars of Company Secretarial Responsibilities

The role of a company secretary can encompass all areas of a company’s activities, depending on the size and nature of the organization. These activities typically fall into three principal categories:

1. The Board

The company secretary ensures proper board procedures are established and followed, prepares and circulates board materials, and provides practical guidance to directors. They serve as a crucial advisor on governance matters, keeping the board informed of relevant legislative and regulatory changes.

2. The Company

A fundamental aspect of the role of company secretary involves maintaining statutory registers, organizing board and shareholder meetings, preparing minutes, and ensuring the company complies with all applicable legal and regulatory requirements. This includes managing annual returns, coordinating statutory filings, and overseeing changes to company structures.

3. The Members (Shareholders)

The company secretary often serves as the primary point of contact between the company and its shareholders, ensuring effective information flow and communication. They facilitate dialogue between the board, shareholders, and other stakeholders, promoting transparency and accountability.

Jurisdictional Differences: Common Law vs. Civil Law Approaches

Did you know that the role and legal requirements of a company secretary vary significantly across European jurisdictions? This variation primarily stems from differences between common law and civil law systems.

Common Law Jurisdictions (UK, Ireland)

In common law jurisdictions like the United Kingdom and Ireland, the company secretary role is integrated into company law and treated as a formal function. This officer, usually appointed by the Board, has extensive duties and responsibilities including statutory filings, compliance, board governance, shareholder communication, and transactional support.

In the United Kingdom, public companies must appoint a company secretary, while private companies may choose to do so. The position can be filled by either an individual or a corporate body. UK company secretaries are responsible for statutory filings with Companies House, board governance, and shareholder communication.

Similarly, in Ireland, all companies must have a company secretary. The role focuses on statutory compliance, transaction management, and filing obligations with the Companies Registration Office (CRO).

Common Law Jurisdictions (Luxembourg, France, Germany)

In contrast, civil law jurisdictions like Luxembourg, France, and Germany rarely reference the company secretary role directly in company law. These responsibilities are typically handled by a law firm or an in-house legal/paralegal expert (sometimes called a “jurist”).

Luxembourg presents an interesting case study in the evolution of the company secretary role. While no formal legal requirement exists for a company secretary, the function has gained recognition through the efforts of organizations like the Luxembourg Institute of Governance (ILA). The role typically focuses on board administration, maintaining legal records, and liaising with the Registre de Commerce et des Sociétés (RCS) when applicable.

France and Germany similarly have no specific statutory position of company secretary in their corporate law. Governance and compliance duties are often divided among legal counsel, managing directors, and external advisors.

However, the landscape is evolving. With global investors increasingly concerned about Environmental, Social, and Governance (ESG) practices, we’ve seen movements in some civil law jurisdictions toward creating formal governance professional roles. For example, the Luxembourg Institute of Directors has created the “Corporate Governance Officer” certification for professionals in governance functions.

Why being clear on who holds the corporate governance responsibilities matters

For companies operating across multiple jurisdictions, being clear on who is responsible for the corporate governance responsibilities and understanding the jurisdictional differences isn’t just an academic exercise—it’s a business necessity. Failing to meet local corporate compliance requirements can lead to:

• Regulatory finds and penalties
• Delayed transactions
• Loss of good standing or legal personality
• Significant reputational risk

The Strategic Value of Corporate Secretarial Service Providers

The fragmented regulatory landscape across Europe creates significant governance challenges for multinational organizations. As regulatory scrutiny intensifies and corporate structures grow more complex, businesses increasingly recognize that maintaining in-house expertise across multiple jurisdictions is both inefficient and risky and look for third-party providers support.

These providers offer several key advantages:

1. Jurisdictional Expertise: They possess in-depth knowledge of local requirements across different European countries. This expertise extends to intricate regulatory nuances that vary significantly between jurisdictions and enables multinational organizations to navigate complex compliance landscapes with confidence.
2. Consistency: They can maintain uniform governance standards across multinational corporate structures. This standardization creates operational efficiency while still allowing for necessary jurisdictional adaptations to local regulations.
3. Risk Mitigation: Their expertise helps prevent compliance failures and governance lapses. By implementing proactive monitoring systems and conducting regular governance audits, they identify potential issues before they escalate into serious problems.
4. Resource Efficiency: Outsourcing reduces the administrative burden on internal teams. This allows corporate staff to focus on strategic initiatives rather than routine compliance tasks that require specialized knowledge.
5. Access to Specialized Knowledge: They employ qualified professionals with extensive experience in governance matters. These specialists bring cross-industry insights and best practices that enhance corporate governance beyond mere compliance.

As corporate governance continues to evolve across Europe, the company secretary role is gaining further prominence, even in jurisdictions where it currently lacks formal recognition.

Conclusion: The universal importance of governance

While not every jurisdiction mandates a designated company secretary, the fundamental responsibilities of regulatory adherence, administrative coordination, and governance oversight remain critical operational necessities.

Whether you hire someone in-house or outsource, ensuring robust company secretarial support is key to operating legally, efficiently, and with good governance across Europe.

Secure your organization’s future with governance expertise that transforms compliance from a challenge into a competitive advantage. The time to enhance your corporate governance framework is now, your stakeholders and bottom line will thank you.

References

¹ Companies Act 2006, c. 46, § 271-273. (2006). UK Public General Acts. https://www.legislation.gov.uk/ukpga/2006/46/part/12/chapter/1

² Companies Act 2014, § 129. (2014). Irish Statute Book. http://www.irishstatutebook.ie/eli/2014/act/38/enacted/en/html

³ Luxembourg Institute of Gvernance. (2023). Corporate Governance Officer certification. https://www.ila.lu/education/certified-programs/certified-programs-description/corporate-governance-officer 

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 Form PF 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 requirements.

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 calculations

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 adding new strategies.

Securitisation has become an indispensable tool for institutions, asset managers, and asset owners. This sophisticated financial instrument offers a powerful trifecta: effective risk management, enhanced liquidity, and streamlined capital structures.

For those contemplating the incorporation of a securitisation vehicle, a comprehensive grasp of this intricate yet potentially lucrative process is crucial. By mastering its complexities, you’ll gain the confidence to navigate challenges adeptly and fully harness the myriad benefits securitisation offers, positioning yourself at the forefront of modern financial strategy.

What is Securitisation and why is important?

Securitisation is the process of pooling various types of financial assets, such as loans, mortgages, or receivables, and converting them into marketable securities. These securities are then sold to investors, allowing the originators to free up capital and manage risk more effectively. The cash flows generated from the underlying assets are used to pay interest and principal to the investors.

During 2017 and 2018, the European Union set up rules for securitisations. The goal was to bring the EU securitisation market back to life while also addressing worries about risky practices that had threatened stability after the global financial crisis of 2008. Since it entered into force in 2019-2020, the framework has strengthened investor protection, transparency, and financial stability.¹

The European Commission has recently taken steps to revitalize the EU’s securitisation framework to make it simpler, more effective, and supportive of economic growth. These initiatives are part of the savings and investments union strategy, which focuses on improving the way the EU financial system works to boost investment and economic growth across Europe.

Benefits of Securitisation

Enhanced Liquidity

By converting illiquid assets into tradable securities, institutions and originators can access capital markets and improve their liquidity position. This transformation allows entities to free up resources that can be used for further lending to EU citizens and enterprises.

Risk Management

Securitisation allows for the transfer of risk from the originator to investors, which can help in managing credit risk and regulatory capital requirements. The main goal is to enable banks and other financial institutions to use the loans and debts they grant or hold, pool them together, and turn them into different types of securities that investors can purchase.

Cost Efficiency

Securitisation can lead to lower funding costs compared to traditional financing methods, as it often allows for better pricing based on the risk profile of the underlying assets. Recent EU reforms aim to simplify unnecessarily burdensome requirements and reduce costs to encourage more securitisation activity.

Diversification of Funding Sources

By tapping into the capital markets, institutions can diversify their funding sources and reduce reliance on bank financing. This diversification is particularly important in today’s volatile economic environment.

Regulatory Benefits

In some jurisdictions, securitisation can provide regulatory capital relief, allowing institutions to optimize their balance sheets. The European Commission’s recent proposals have estimated a reduction in capital requirements by one-third for senior securitisation tranches, which should encourage new issuances in member states where activity has been limited.

Key Considerations before incorporating a Securitisation Vehicle

The European securitisation market operates under the EU Securitisation Regulation (EUSR), introduced in January 2019 as part of a comprehensive regulatory response to the Global Financial Crisis.

The Securitisation Regulation amendments aim to reduce operational burdens by simplifying transparency requirements, with plans to cut reporting fields by at least 35%. The revisions introduce more proportionate, principle-based due diligence processes, eliminating redundant verification steps when the selling party is EU-based and supervised.

Notably, the requirement for Simple, Transparent and Standardised (STS) securitisations has been modified to consider pools containing 70% SME loans as homogeneous, facilitating cross-border transactions and enhancing SME financing opportunities.²

Choosing the right jurisdiction

Selecting the appropriate jurisdiction for your securitisation vehicle is a critical strategic decision that impacts regulatory compliance, tax efficiency, and operational flexibility. Several European jurisdictions offer competitive frameworks for securitisation vehicles, each with distinct advantages depending on your specific transaction objectives.

The optimal jurisdiction ultimately depends on multiple factors: the location and type of underlying assets, your investor base, anticipated transaction complexity, and specific business objectives. Regulatory changes, such as the EU Securitisation Regulation, have created a more harmonized framework across Europe, though important jurisdictional nuances remain that can significantly impact transaction efficiency.

Structuring the vehicle

Decide on the structure of the securitisation vehicle. Common structures includes:

1. Securitisation Undertaking: A corporate entity specifically designed for securitisation transactions
2. Securitisation Fund: Similar to an investment fund, but specifically for securitisation assets
3. Fiduciary Structures: Where assets are held by a fiduciary for the benefit of investors

These structures are designed to isolate financial risk and facilitate the issuance of securities. You can choose a bankruptcy-remote structure with a Dutch Stichting or a Jersey Trust, which are most commonly used, or incorporate a vehicle using an entity in your group.

Legal & Tax Implications

You’ve made the strategic decision to incorporate a securitisation vehicle—now it’s time to navigate the complex legal and tax landscape that comes with it. Have you considered how different jurisdictional choices might impact your bottom line?

Legal and tax considerations aren’t just compliance checkboxes. They’re powerful levers that can dramatically enhance your securitisation structure’s efficiency. Engaging specialized advisors early in your planning process to avoid costly restructuring later.

By strategically selecting your jurisdiction and structure based on your specific assets and investor profile, you can create a tax-efficient vehicle that maximizes returns while maintaining full compliance.

Servicing and Management

Establish a reliable servicing and management framework for the transaction. Effective management and administration of the vehicle by an experienced partner is critical to ensure the correct execution of the transaction.

As the legislative changes removed restrictions on leverage and the nature of the securities permitted as collateral, the SV can now enter into a facility with a credit institution. This is required to acquire the full amount of the contemplated investments, providing greater certainty to the market.

Conclusion

Incorporating a securitisation vehicle represents a strategic opportunity for financial institutions and asset managers seeking to optimize their capital structures, enhance liquidity, and manage risk effectively. The European securitisation market, with its evolving regulatory framework, offers sophisticated mechanisms to achieve these objectives when properly structured.

Partnering with an experienced service provider gives you access to specialized knowledge from structuring and incorporation to efficient implementation and execution to vehicle liquidation.

This collaboration enables you to navigate jurisdictional complexities with confidence, ensure regulatory compliance across borders, and optimize your structure for maximum efficiency and investor appeal. Such expertise has become not merely beneficial but essential for institutions seeking to leverage the full potential of securitisation.

Securitisation is complex and you shouldn’t have to manage it alone. At Alter Domus, we simplify the process with end-to-end expertise, from transaction closing through administration and up to liquidation. With us as your partner, you can focus on strategy and investors while we take care of execution.

Contact us today to learn about how you can unlock of the full potential of securitisation with Alter Domus.