Analysis

Evolving Operations: The Rise of Co-Sourcing in Private Markets

Co-sourcing is increasingly being seen as a viable operational model by asset managers. In this article, we break down the fundamentals of co-sourcing, and outline the factors driving its adoption. 


Staying in Control

How do private markets firms scale operations while maintaining control? It’s a challenge facing CFOs, COOs, and fund controllers as the industry grows in scale and sophistication.

Over the past decade, private capital has become a mainstream asset class, with managers handling larger, more complex portfolios across diverse jurisdictions. The introduction of new fund structures—like continuation vehicles and co-investments—has expanded the toolkit for general partners (GPs) but also intensified operational demands amid rising regulatory pressures and limited partner (LP) expectations.

Eight Drivers of Co-Sourcing In Private Markets

A 2024 Private Markets Insight Report by Allvue Systems reveals that 84% of private capital firms plan to re-evaluate their operating models within the next 12–18 months, with modular co-sourcing as a key focus. Similarly, 88% of managers at the Fund Operator Summit Europe are exploring outsourcing or co-sourcing in operational areas, particularly in reporting and support functions. Here, we explore the driving forces behind the growing adoption of co-sourcing.

1. Complexity outpaces legacy models

Firms manage more funds, across more jurisdictions, for increasingly diverse investors. Co-sourcing provides the flexibility and transparency needed to navigate this complexity.


2. Control without Overhead

Managers want to own their data, systems, and client relationships—without carrying the full operational load. Co-sourcing allows firms to retain oversight while shifting execution to trusted partners.


3. Scalable without compromise

As strategies multiply and reporting timelines tighten, operational needs fluctuate. Co-sourcing provides institutional-grade support that flexes with demand, without overcommitting to permanent hires.


4. Enhanced governance and risk management

Regulators demand clear accountability on vendor oversight and operational continuity. Co-sourcing provides transparency into workflows, responsibilities, and data flows, strengthening governance.


5. Rising regulatory burden

SEC Form PF updates, AIFMD filings, ESG disclosures, and tax transparency rules require greater frequency and granularity in reporting. Co-sourcing ensures consistency and accuracy across jurisdictions.


6. Growing LP expectations

Investors want richer insights into performance, fees, and portfolio exposures—delivered faster. Co-sourcing gives managers the back-office strength to meet these expectations while retaining control of the client narrative.


7. Data and platform ownership

Unlike traditional outsourcing, co-sourcing ensures managers keep ownership of their platforms and data, while partners integrate into existing systems to maintain continuity and reduce transition risks.


8. Talent scarcity

Specialist skills in fund operations—such as waterfall calculations or jurisdiction-specific compliance—remain hard to source. Between 2020 and 2022, the U.S. lost more than 300,000 accounting professionals. Co-sourcing provides immediate access to expertise without lengthy recruitment cycles.


Co-Sourcing Overview

To address these challenges, many fund managers are shifting towards a hybrid co-sourcing approach, allowing them to retain control over their systems and client experience while leveraging specialist partners for precise execution.

Ready to transform your operating model?

Co-sourcing with Alter Domus offers General Partners a tailored approach that combines internal oversight with the executional strength of a specialist partner.

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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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.


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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

BenefitHow it Helps
Internal OversightControl over systems, data, policies, and approval processes remains in-house
External ExecutionAlter Domus executes defined tasks at scale, with speed, accuracy, and rigor
Data OwnershipClients maintain full ownership of their infrastructure and data environment
Regulatory ReadinessRespond to changing rules with agile support and specialist knowledge.
Investor ResponsivenessMeet LP reporting demands faster and more consistently. 
Operational ScalabilityExpand or contract support without internal hiring constraints.
Access to TalentTap 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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Insights

singapore
EventsAugust 20, 2025

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Looking to incorporate a Securitisation Vehicle? Here’s what you need to know

Analysis

Looking to incorporate a Securitisation Vehicle? Here’s what you need to know

Securitisation vehicles are powerful tools that enhance liquidity, optimize risk management, and streamline capital structures. We explore how understanding their complexities can equip you to unlock financial opportunities and stay ahead in today’s evolving markets.


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.

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

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