NCM understands that there are many factors to take into account when selecting a fund service provider. One of the key factors that may get overlooked in the review of services and fees is the ownership structure and the potential impact if your service provider changes hands. In recent years there has been an increase in merger and acquisition activity amongst fund administrators and back office software providers. This, we believe, has highlighted the advantages of working with a smaller owner-managed company like NCM.
NCM is a boutique fund administrator with a consistent and experienced team. Working with a service provider of our size fund managers can expect a high level of service, senior resource and value add in terms of knowledge and expertise. In the beginning, fund managers spend a good deal of time getting to know the team and developing a strong working relationship. When that provider is absorbed into a much larger group, funds can be left feeling like they have been abandoned and those relationships are moved on or to a larger more general team. At NCM we have a committed and reliable team with very low staff turnover.
Beyond the impact on service, another less discussed aspect to the ever-changing service provider landscape is the movement of highly sensitive data and fully understanding where it could end up. Fund administrators and software providers store and manage GP, manager and LP data, and when the service provider changes hands, so must the data.
One recent example of this is BlackRock’s acquisition of eFront. Unlike other consolidation activity in the space, this deal is unique. BlackRock not only provides technology to private capital managers; they are also managers themselves. In essence, they now have their competitors’ data. Something for those setting up a new fund to consider in their administrator due diligence.
NCM is ever growing but continues to be owner managed and we strive to ensure there is a personal identified team relationship with every client so they know they are valued and are treated as individuals with specific needs and services requirements. No fund and no fund manager is ever the same which makes our role enjoyable and fulfilling!