The total amount of private equity and real estate funds managed by outside administrators jumped last year by 23.7% year-over-year for a total of USD 1.580 trillion, according to a new report from eVestment. The majority of private equity and real estate assets, about 60% to 70%, are still administered in-house.
The survey suggests that it figures will change if PE investors find regulatory requirements, more transparency and expertise too much of a burden. The author notes that adoption of outside fund administration is already “almost universal” among hedge funds, funds of hedge funds and liquid alternative funds.
For the report, eVestment surveyed administration firms serving hedge funds, funds of hedge funds, private equity funds, real estate funds and liquid alternatives funds.