Compliance outsourcing required in competitive fundraising environment (FundFire)

Investors of hedge funds and other private funds are increasingly demanding that these firms have comprehensive compliance oversight. Within a landscape of very competitive fundraising, managers both large and small are facing higher costs to launch funds, and outsourcing functions such as compliance support have become a necessity. According to Amy Lynch, FrontLine’s Founder and President, outsourcing can save fund managers at least 30% over an in-house hire when human resources expenses are factored in. She explains that the competition for fundraising dollars has put pressure on the portfolio management and sales sides to stand out. If done correctly, outsourcing compliance helps by allowing a firm to free up resources and save time and money. A must-have where more allocations to private funds, particularly hedge funds, are expected and the race is on to attract investment dollars. See FundFire (subscription required), “More Hedge Funds Move to Outsource Compliance in Changing Landscape”