The investment landscape is shifting significantly as demand for access to alternative funds continues to grow. Traditionally dominated by institutions, alternative funds are increasingly attracting a broader range of investors, including high-net-worth individuals (HNWIs). According to Preqin, private markets are expected to grow at more than twice the rate of public assets, reaching up to $65 trillion by 2032. This surge in interest is driven by two key factors: the desire for portfolio diversification and the pursuit of strong returns.

This insight will analyse the constraints that legacy systems place on fund administrators in the alternative funds landscape and explain how Goji is providing a solution through technological innovation, allowing fund administrators to benefit from digitisation, connectivity, and scalability.

How can fund administrators overcome legacy constraints on alternative funds?

As more investors seek access to private market funds and alternatives as a whole, fund administrators must modernise to keep up with demand. While mutual funds operate with a comparatively straightforward and regulated structure, alternative funds involve more intricate processes and compliance requirements. An influx of new investors in private markets increases the operational burden for fund administrators and reveals the limitations of legacy systems and manual processes.

To meet demand, fund administrators must rapidly onboard new investors and process an ever-increasing number of subscriptions. Legacy systems struggle to keep pace, leading to bottlenecks that can hinder growth and deter investors. Without embracing digital transformation, fund administrators may struggle to meet the ever-evolving needs of their clients.

Investors and fund managers alike expect services that not only support their growth but also position them ahead of the competition. By providing a service built on digitisation, connectivity, and scalability, fund administrators can streamline operations, enhance efficiency, and scale their offerings to accommodate a growing pool of investors.

Leveraging digitisation, connectivity and scalability to faciliate access to alternative funds

To solve challenges traditionally faced by fund administrators, technological innovation is required. Modernised technology should facilitate access to alternative funds and reduce operational inefficiencies in private fund administration with a focus on digitisation, connectivity, and scalability.

Through technological innovation and its connection with Euroclear, Goji can provide fund administrators with all three of these benefits with its private markets platform:

Digitisation: A fully digital private funds platform

Goji provides a fully digitised, end-to-end investment journey for private market funds from investor onboarding to settlement and reporting. This digitisation reduces reliance on manual processes and minimises errors, improving overall efficiency. Moreover, by automating routine tasks, fund administrators can focus on higher-value tasks such as investor relations and strategic growth initiatives.

Connectivity: Access to Euroclear's distribution network

Following Goji’s acquisition by Euroclear and the launch of a private funds service on Euroclear FundsPlace platform, Goji can offer fund administrators enhanced connectivity with clients in Euroclear’s network.

Significantly, by partnering with Goji, fund administrators can connect fund managers with Euroclear’s 2,000+ distributor clients. By doing so, fund managers can access a growing pool of capital.

Scalability: Leveraging operational efficiency to meet growing demand for alternative funds

Digitisation and connectivity both drive scalability by increasing operational efficiency and driving faster relationship-building between distributors and the fund management companies (FMCs) that fund administrators are servicing. By scaling their clients’ operations, fund administrators can ensure client satisfaction and simultaneously scale their own operations.

Tech-driven transformation: The benefits of a private funds platform

Goji’s digitised solution streamlines the investment process and helps clients to seamlessly manage the investor lifecycle.

Key features of the platform include:

Effortless investor onboarding

• Efficient investor onboarding to manage KYC and AML requirements at scale. Seamless processing across multiple jurisdictions to ensure compliance without compromising speed.
• Digital signatures and a secure online portal to enhance convenience and security for investors.

Simplified compliance

• Ability to leverage a digital audit trail and support multi-jurisdictional legal and regulatory requirements to ensure compliance and enhance trust from investors.
• Automated compliance checks and updates to ensure adherence to the latest regulatory changes.

Streamlined subscriptions

• Ability to reuse investor KYC/AML profiles across multiple private fund subscriptions to accelerate the investment process.
• Seamless management across multiple investments.
• Automated processing of subscriptions and redemptions to ensure accuracy and timeliness.

Digitised capital calls

• Digitised capital calls to facilitate timely and accurate capital allocation and ensure client satisfaction.
• Automated notifications and reminders to ensure investors meet capital call deadlines, reducing administrative burden.
• Transparent tracking and reporting of capital contributions, enhancing investor confidence and satisfaction.

Transparent private fund reporting

• Transparent, real-time access to fund and portfolio-level performance metrics and reports to allow for better-informed decision making.
• Customisable dashboards to allow clients to define their own metrics.

Seamless integrations

• Integration with accounting platforms and other third-party internal systems to enhance overall functionality of the digital platform and streamline all fund operations.

Seizing the opportunity by embracing digitisation: How a private funds platform can transform operations

The growing demand for access to alternatives presents challenges and opportunities alike for fund administrators. By modernising their systems and embracing digitisation, fund administrators can overcome operational inefficiencies and scale their services to meet investor demand. In doing so, they will not only enhance their capabilities but also provide their clients with a service that supports growth, fosters competition, and capitalises on the expanding pool of capital in alternatives.

By offering a fully digitised, end-to-end investment journey and connecting every market participant in the alternatives industry, Goji and Euroclear are providing a comprehensive solution for fund administrators who want to maximise on industry growth. By leveraging this solution, fund administrators can keep pace with growing demand and an ever-evolving investment landscape.

To learn more about how Goji can help you offer a private fund service that drives growth, fill in a contact form.