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Outsourcing Complexities of an Infrastructure Fund

Written by Patrick Rutherford | Nov 29, 2023 5:00:00 AM

Infrastructure funds have been used by investors as an investment vehicle seeking a buy-and-hold strategy to maximize long-term gains. Investments have varied widely from toll roads to natural gas pipelines to wind turbines. Business Development Companies (BDCs) and fund managers’ sustainable commitments to environmental, social and governance (ESG) metrics have reinvigorated investors’ interests in infrastructure funds. In an effort to cater to as diverse of an investor base as possible, fund managers have established entities domiciled in areas of the globe all within the fund structure.

Navigating the nuances of complex structures can be a daunting task for fund managers. Entities in different jurisdictions come hand-in-hand with their localities’ regulatory and reporting requirements. Parallel vehicles may be denominated in varying currencies and require FX translations to allocate transactions across multiple entities properly. Fund structures could require the expertise to combine or consolidate entities in a manner that presents clear and accurate information to investors. With the rise in investors seeking standardized reporting templates, tracking and aggregating financial data is more important than ever.

For those wanting to maximize the opportunities within infrastructure, both access to data and the ability to analyze it are necessary. Fund structures can be very complex and a knowledgeable team is needed to coordinate reporting requirements with multiple service providers. Many funds choose to partner with a fund administrator who can provide robust technology infrastructure and integrated solutions. SS&C specializes in servicing different types of fund structures, including vehicles domiciled in different countries. SS&C’s solutions connect multiple platforms, allowing our clients to efficiently collect, analyze, and distribute data.

To learn more about infrastructure funds and credit, view our "Infrastructure Funds and Credit: A Beneficial but Complex Structure" webinar or download our latest whitepaper.