Outsourcing Gains Traction with Real Estate Investment Managers
Can Fund Administrators Meet Rising Expectations?
More real estate fund managers are expected to outsource certain business functions in the coming years. After a long history as a cottage history, real estate investment administration – or “fund administration” as it is often called – will help these managers realize efficiencies and better focus on their core objectives and strategic imperative of investment and asset management.
A new report, “Outsourcing Gains Traction with Real Estate Investment Managers,” which is based on a survey conducted by Wealth Management Real Estate and Informa Engage on behalf of the Real Estate Solutions practice at FTI Consulting among more than 200 institutional investors and REITs, explores the divergent perspectives of those fund managers that have and have not outsourced. Their differing opinions pave the way for learning more about what drives real estate investment managers to decide to outsource, as well as what makes an outsourcing relationship successful.
Among the issues explored in the report are:
- The current state of outsourcing: Who is currently outsourcing and what back office functions are being outsourced?
- The differing value propositions for firms that do outsource versus those that don’t: They differ in how they prioritize a provider’s knowledge, service, experience, and price.
- Seeing outsourcing vendors as “partners” and the question of control
- The importance of real estate industry expertise and a provider’s service offerings
- Technology investment and ownership
- The value of third-party oversight
Download the full report for more details.