The operating context for the private equity manager has completely transformed during the last decade and many firms are preparing to migrate their funds as a result.

Buyout firms are now managing US$4.7 trillion of assets and holding almost twice as many portfolio companies in their funds than in 2019, according to Bain & Company figures.

With the buyout industry operating on a completely different scale than 10 years, the demands on the buyout back office have inevitably intensified. This not just because GPs are now responsible for shepherding a larger number of funds, shepherding bigger portfolios, and executing a higher volume of deals. Managers also have to comply with higher investor and advisor demands when it comes to the granularity and timeliness reporting.

The evolution of deal structures, which now include co-investments and continuation vehicle transactions, have placed further workloads on private equity operations, as have the increasing use of fund finance and the growth of the non-institutional investor base.

Time for a change: when to migrate funds

The increasing complexity and sophistication of the private equity business means that buyout managers are now facing an operational inflection point, where the relatively simple operating infrastructure that has served the industry so well for so long now requires an upgrade.

Similarly, long-standing outsourcing partnerships, where outsourcers were only required to provide quarterly fund reports, could now also require a refresh.

It is in this context that a series of trigger points are emerging for buyout managers to take the leap and migrate funds. This is not a decision to be taken lightly – fund migrations are complex, demanding projects that can be at risk of costing more and taking longer than anticipated – but many private firms are now approaching a point where delaying a migration can’t be put off any longer.

Why managers migrate funds

• Poor service: As the demands on outsourcing partnerships have increased, there are more reports of private equity firms citing poor service delivery as a catalyst for migration. Fund administrators still running on legacy systems, using inflexible reporting templates and relying on manual processes have been unable to keep up with the reporting timelines and detail that private equity firms and their investors now expect. This in turn can lead to errors and delays. Managers will expedite migrations when incumbents can’t keep pace with evolving GP requirements, switching to administrators that have the tools and scale to stay ahead of increasing regulatory and reporting workloads.
• Provision of scale: Deteriorating service levels can often be boiled down to a question of scale. Private equity managers have seen huge increases in assets under management (AUM) and in many cases simply outgrow the capacity of incumbent providers and have to move on to providers that have the bandwidth to grow with a manager over time and handle rising transaction volumes and a wider array of fund structures.
• Keeping costs down: Private equity managers are facing the most challenging fundraising market since the 2008 financial crisis, with private equity fundraising down 17% year-on-year in H1 2025, according to PEI figures. It has been essential, then, for private equity firms to run fund operations as efficiently and cost-effectively as possible and delivering value for money for LPs. Indeed, a Preqin survey found that well over a quarter of managers (29%) see pricing and fee transparency as a key catalyst for changing fund administration provider.
• Up-tiering technology: The requirement to upgrade technology stacks and transition onto best-of-breed industry software packages will be a driver of fund migration for private equity managers, who are increasingly relying on fund administration partners to not only act as a provider of outsourced fund reporting services, but also a first point of contact for advice on the choice and implementation of technology. Preqin’s survey found that close to a fifth of managers change fund administrator because of technology.

How to choose a new fund administrator

The reasons that trigger a fund migration will also shape what a private equity manager wants from a new fund administration provider.

The ask will vary from manager to manager, depending on investor base, current gaps in in back-office operations, technology requirements and geographic footprint.

There are nevertheless a set of core themes that will inform fund administration selection in most cases:

• Asset class expertise: Experience and track record in private equity matter. GPs will expect their fund administrator to have deep private equity expertise. Geographic reach is also important. GPs want fund administrators to be close to the specific LP communication, reporting and fund structure preferences in all key global markets, and to have teams on the ground where investors are active.
• Exceptional technology and data capability: Technology is viewed as the single most valuable lever for making private equity back-offices more efficient and for meeting increasing investor demands. The sophisticated investors will have a firm working knowledge of the asset-specific software programs, including Allvue, eFront, Private Capital Suite (formerly Investran) and Yardi, and able to advise on the technology stacks suited to each client’s bespoke requirements. Managers also expect fund administrators to facilitate seamless integration and interoperability between the private equity firm’s core back-office infrastructure and third-party data providers. Fund administrators should also be able to implement cloud-native operating models, have an eye on the developments around self-service data for clients, and meet the highest cyber security standards and certifications.
• Operational model flexibility: A change of fund administrator also opens an opportunity for private equity GPs to review operating models, and to transition to an operating model that best serves long-term growth ambitions and technical requirements. GPs will favor fund administrators that can provide operational flexibility, whether that be through a classic outsourcing arrangement, a co-sourcing model or a lift out.
• Comprehensive regulatory knowledge: Keeping track of myriad regulatory developments across multiple jurisdictions has become increasingly challenging for private equity to sustain without support, especially for US managers operating in Europe and/or the United Kingdom. Managers are relying on fund administrators to be up to date on all key regulatory developments, range from the Alternative Investment Fund Managers Directive II (AIFMD II), Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) to the Sustainable Finance Disclosure Regulation (SFDR), The General Data Protection Regulation (GDPR). Automated regulatory reporting and compliance is also becoming a more common ask, as managers look for ways to lighten the regulatory compliance burden.
• Service excellence: Responsiveness and service excellence are a must for all GPs, who are now drafting detailed service level agreements (SLAs) with trackable key performance indicators (KPIs) around processing times and reporting accuracy. The best administrators will understand each client’s context and proactive when it comes to addressing client requirements.

A long-term partnership

When undertaking a fund migration, a private equity manager will want the relationship with a new fund administrator to be a long-term one. It is not in GP or LP interests to be constantly having to migrate funds.

As a fund administrator operating at scale Alter Domus has the resources and private equity-specific expertise to grow with clients, maintain excellent service levels and keep client platforms updated with the latest technological tools. We employ 6,000 professionals across 23 jurisdictions and administer US$3.5 trillion of assets and 36,000 client structures.

We have the scale, technology and industry knowledge to not only facilitate smooth fund migrations that cover the shifting requirements of the modern private equity manager but also put platforms and relationships in place that last for the long-term.

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 services 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.

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

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.