The private capital industry is evolving rapidly, with fund managers navigating increasing complexity, greater investor expectations, and the pressures of globalisation and regulatory scrutiny. According to Preqin, in 2024 alone, over 31.5% of private capital funds appointed new fund administrators—an upward trend from 25.1% in 2022. This wave of change signals a growing realisation among GPs: sticking with an outdated or misaligned fund administrator can hinder growth and performance.
As we approach 2025, it’s worth asking—are you ready for the next chapter of fund administration?
Why switch fund administrators?
Fund managers are motivated to switch administrators for several reasons. The key drivers are directly tied to today’s dynamic market realities:
- Service quality and transparency
Many GPs cite dissatisfaction with communication and responsiveness as the leading reasons for switching. As your funds grow in size and complexity, you need a partner who can offer transparent and proactive service. - Technology gaps
Fund managers increasingly require advanced, tech-driven capabilities to meet demands for real-time data access, streamlined reporting, and compliance with evolving regulations. Administrators with outdated infrastructure can’t keep pace with your needs. - Scaling and strategy shifts
As GPs explore new strategies—such as continuation funds or international expansion—administrators must offer scalable solutions and jurisdictional expertise. If your administrator isn’t prepared to grow with you, the partnership might be holding you back. - Investor demands
LPs are prioritising institutional-grade reporting and ESG compliance, adding pressure on fund administrators to deliver. A lack of modern capabilities may negatively impact investor confidence.
The rise in fund administrator transitions
The industry-wide shift is apparent. Preqin’s research shows that new fund administrator appointments have steadily increased across asset classes, with venture capital funds leading the way—37% of VC funds from 2023 vintages appointed new administrators, a significant rise from 2022. Larger funds (>$1bn) are also leading this charge, indicating that size brings the flexibility to invest in better tech-enabled partnerships.
Switching made seamless with fundcraft
Switching fund administrators might sound risky, but it doesn’t have to be. At fundcraft, we’re laser-focused on ensuring a bulletproof migration and onboarding process, supported by transparent, value-driven pricing that aligns our incentives with our clients’ success.
Whether transitioning a single fund or hundreds, we manage the entire process—data, documentation, reports, accounts, and payment approval flows are all seamlessly transferred. Our process ensures operations are reviewed and validated from legal, regulatory, and corporate housekeeping perspectives, guaranteeing compliance and continuity from day one. For new funds, onboarding is just as smooth, with tailored support for every stage of the fund lifecycle.
Transparent and aligned pricing
Traditional fund administrators often impose high, unpredictable fees based on “time spent,” mirroring the billing practices of law firms or accountants. At fundcraft, we’ve revolutionised this model with a value-based approach. Our transparent, tiered fixed fees are calculated based on the greater of called capital from investors or deployed capital by the fund, scaling down to 10 basis points at the highest tier. This structure ensures predictable costs that align with your fund’s lifecycle. As your fund progresses through its divestment period, our fees decrease accordingly—ensuring that value delivered matches your needs at every stage. No hidden costs. No surprises. Just straightforward, predictable value.
Your partner for digital fund operations
As Europe’s premier provider of digital fund operations, fundcraft combines cutting-edge technology with expert delivery to redefine fund administration. Our platform automates workflows, centralises data, and enables seamless collaboration among all stakeholders—GPs, LPs, auditors, and depositary banks—on a single source of truth.
Choosing fundcraft means opting for a future-proof fund administration partner who prioritises your success and delivers value without the pain of transition. With our proven processes and client-first approach, switching to fundcraft isn’t just easy—it’s the best move you can make to prepare your fund for the future.
While the decision to switch fund administrators can feel daunting, the process doesn’t have to be. fundcraft simplifies migration with a robust, client-focused approach:
The benefits of acting now
Delaying a switch to a more capable administrator doesn’t just cost you efficiency—it can also impact your relationships with investors and regulators. A smooth transition is not just possible; it’s a strategic advantage that can unlock:
- Greater operational scalability
- Improved investor confidence
- Enhanced compliance and reporting capabilities
- Reduced administrative overhead
With €8.1 billion in commitments and over 210 Luxembourg-domiciled funds under administration, fundcraft combines market-leading expertise with unparalleled digital solutions to meet your evolving needs.
Don’t wait—start 2025 with fundcraft
The decision to switch fund administrators is a proactive step towards building a resilient, future-proof operation. Don’t let outdated systems or subpar service hold you back from achieving your fund’s full potential.
With fundcraft, the transition is easier than you think. Ready to transform your fund management? Let’s talk.