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Lift-Out Solutions

Administrative support and local expertise for investments in real assets.

 

ALTER DOMUS

Lift-Out Solutions

Investing in real assets— real estate, private equity, infrastructure, and debt related to all three— requires high volumes of administration and local expertise.

 

 

We have seen manager appetite for reviewing outsourcing potential increase significantly, leading us to include lift-outs of in-house administration teams as one of the key objectives of our firm over the coming five years.

 

 

Key considerations for managers

 

Managers have approached their requirements in different ways, with some deciding from the outset to carry out administration work with an in-house team, with others looking to third-party providers for support. The former have decided to insource for many reasons, most commonly:

 

  • The need to maintain control
  • The ability to directly manage service quality through proximity to the administration team

 

Things are changing, however, due to a number of factors which have evolved with accelerated pace over the past five years.

 

 

 

 

 

Factors increasing managers' appetites for outsourcing

 

 

Complexity

Increasing regulation, investor/LP reporting demands and overall complexity

Independence

A growing number of LPs favour a model where professional administrators independently calculate and report performance

Cost

Ageing platforms require significant investment to keep apace

Time

Increasing proportions of administration staff to investment professionals, and associated increase in management focus required on the former, a non core-activity

Expertise

A service provider base with a successful track record of executing lift-outs and rapidly implementing process and reporting improvements

Our Solutions

Over the last 10 years and across the globe, Alter Domus has successfully lifted-out multiple small to large scale in-house real estate and private equity teams, and in doing so has developed a clear and robust methodology to ensure an efficient and timely handover of teams, operations and reporting.

 

During the initial stages of lift-out, this methodology can involve use of the client’s existing platform as we develop additional functionalities. This allows for a controlled transfer to our platform with a pure focus on administration and the benefits this brings, including:

 

  • Client reporting is sourced from a continuously upgraded and developed platform with a strong focus on data integrity and delivery, and an increasing focus on AI and robotics
  • Continuous process improvements built on ISAE3402 certifications with associated reduction in operational risk
  • Stronger geographical coverage through the ability to leverage Alter Domus’ network of over 20 jurisdictions
  • Access to a talent pool of highly trained professionals with administration as their core activity

 

 

 

 

 

A proven track record

 

Clients who have already transferred their teams to us have seen long term retention and improved staff morale and performance following the move to Alter Domus due in large part to:

 

  • Proven track record of lift-outs across all three regions
  • Circa 100 employees lifted out to date
  • Combined lift-out of circa USD $45bn AuM
  • Over 3,300 employees focused on administration as the core function of our firm
  • A larger pyramid that provides increased opportunity for career development and progression
  • Personal development through working with other clients

 

 

 

 

Our Methodology

 

Our lift-out methodology includes the set-up of steering committees including senior executives from the client and Alter Domus, as well as working groups dedicated to:

  • Human resources: Contracts, packages, retentions, benefits alignment, recognition of seniority
  • Legal: Administration agreements, side letters, warranties, SLAs
  • Pricing: Understanding of cost base, transparent approach
  • KYC: Collation of information for client acceptance process
  • Premises: Physical relocation of the team to new premises
  • IT: Hardware, staff setup, login to client systems
  • Operations: Documentation of processes, timetables, data transfer, deliverables
  • Regulatory: Local licenses and consents
  • File transfer: Both physical and electronic

If you are interested in learning more about how we have successfully helped our clients move to a market-leading investment administration platform, and to discuss opportunities for your business, please contact a member of our team below or use the following form.

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Key Contacts