Remember the London Whale scandal of 2012? Most people do. But very few realize that the colossal $6+ billion loss was partially the result of a couple of faulty spreadsheet calculations.
It doesn’t take a catastrophic, front-page event to understand that there is an opportunity cost to quality lapses. Errors and irregularities happen all the time — especially when human hands and point tools are involved. The real question is, how do you minimize these slips?
In the world of private equity, that is a material question.
Fund administration is a complex endeavor, requiring dozens of workflows and processes, many of which directly touch clients and regulators. The potential for breakdowns — whether involving onboarding, fund accounting, waterfalls, cybersecurity, AML compliance, or other areas — is ever-present.
Clearly, quality should be front and center for any fund manager. But as this new NES Financial white paper argues, quality is about much more than playing defense against errors or irregularities. Quality is actually a strategic mindset that, if it permeates your operations and your brand, can carry important benefits — like efficiency, transparency, credibility, confidence.
NES Financial has embedded this quality mindset in our operations since day one — and we back them with rigorously managed, cloud-based data warehousing and analytics, supported by industry-leading domain expertise. We do this because we know that when our clients, too, “own quality,” they are freed up to focus on what they do best — raising and retaining capital, making smart investments, and delighting their customers.
Learn more about NES Financial’s fund administration solutions here.