As fund managers focus on finding alpha, they are transitioning their operations to outsourcing and lift-outs. Similar to outsourcing, a lift-out is where the operations team moves over to the outsourcing provider, where it is better resourced and bolstered by the technology and expertise of the service provider. By using a team that is already familiar with the business, lift-outs allow a faster transition than traditional outsourcing, with less risk. Shifting the responsibility of the people, technology and processes to the service provider allows the business to see instant benefits.
Like any arrangement with a third party, it’s important to do your research and choose a service provider with the appropriate experience and track record. Choose a provider that has experience executing lift-outs, as well as a professional project management practice to coordinate all aspects of the transition from people to technology to real estate.
Whether you’re choosing to initiate a lift-out to re-focus your business’s core competencies, generate scale, protect against rising costs or modernize operating platforms—or any other reason—managers need to look beyond the short-term and consider how the decision will affect long-term goals.
Before embarking on the five phases of a lift-out—strategy and planning, discovery, execution, integration and business as usual—it’s important to define the scope by identifying the staff, processes, deliverables, services, technology/systems and real estate that will be involved. We spoke with HedgeWeek about common motivations and challenges of lift-outs, and how managers can best navigate the process.
SS&C is a strategic partner and administrator for the largest firms in the private markets, hedge and registered investment firms, and we have a record of helping companies achieve scale, remove operational hurdles and accelerate growth. To learn more about how SS&C can help you customize a plan to suit your company’s situation, download our "How SS&C Lift-Out Services Can Benefit Your Business" eBook.