The private equity fund administration technology for TMF Group will be powered by FIS Group, following the firm’s takeover of State Street’s Channel Islands fund services business.
The Dutch-based fund administrator will use the FIS Investran software suite to automate and streamline its front-, middle- and back-office processes, and further enhance operational efficiency, reporting and performance.
“As we looked for a technology partner to support our growth strategy, we wanted to work with a technology innovator that had a successful track record in our market,” said Melanie Peploe, chief operating officer, fund services, TMF Group.
“FIS with its Investran solution was the clear winner. With our history of working together, we know that FIS backs its world-class fund accounting tools with deep knowledge of our markets.”
TMF Group closed its acquisition of State Street’s private equity and real estate fund administration business in the Channel Islands last month, taking its total assets under administration (AuA) to $125 billion.
It is the latest example of fund administrators revamping their technology infrastructure and overcome issues surrounding legacy platforms, particularly after acquisitions.
In addition, as fund administrators move from traditional to more illiquid alternative products, the technology that has underpinned operations can struggle to meet the complexity associated with private markets.
Correctly valuing the assets held in a real estate, private equity or infrastructure portfolio is a more time-consuming and complex process than striking a NAV (net asset value) for a money market mutual fund. Furthermore, the client and regulatory reporting obligations for illiquid portfolios also diverge significantly from those of more retail-focused investment vehicles.
Last year, Northern Trust developed enhanced reporting and analytical tools in a partnership with FIS to provide private equity managers with greater transparency into fund operations.