Launching your fund on the proper platform

The freedom to focus on investing is what makes the platform proposition compelling for startup, small and medium-sized funds.

Not all platforms are alike, however. They can vary widely in services and capabilities.

It is important to do your due diligence and know what questions to ask when talking to platform providers.

What constitutes a proper platform?

The two most important pillars are people and technology.

Who are the people looking after your business? You are entering into an important, everyday relationship. You will want to work with people whose resumes and credentials inspire confidence that they know what they are doing.

It is equally important that the platform offers a strong technology infrastructure, built around state-of-the-art systems, with a high level of automation and integration to help mitigate your operational risk.

Be wary of any company that claims to have built its own fund accounting or middle-office system.

Homegrown systems often raise questions about support, upgrades, scalability and integration with industry-standard technology, and they may pose operational risks if these issues are not adequately addressed.

For your crucial applications - fund and investor accounting, trade order management, and clearing and settlement - look for proven, brand-name technology that is widely used in the industry.

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