For a new fund management firm, the ability to launch quickly and efficiently provides a competitive edge within the asset management sector. However, that can be a lot easier said than done.
Using outsourced COO services is one strategic solution new firms can implement to increase their fund’s speed to launch. By leveraging the specialised knowledge and experience of an outsourced COO, firms can streamline their setup processes, access an increased range of service providers, reduce initial overhead costs and ensure regulatory compliance from the outset.
Streamlined Operational Setup
Outsourced COOs bring a wealth of experience in establishing efficient operational frameworks. Their expertise allows them to quickly identify and implement the most effective operational structures and technology that new firms require.
Rather than being distracted by operational logistics, fund managers can concentrate on the core business activities required at start up – those of potential investor relations and the design of the fund’s portfolio. An outsourced COO can free up valuable time and resources, which allow the fund manager to focus on communicating the new fund’s strategy and teeing up potential investor engagement.
Access to Established Networks and Resources
Outsourced COOs come with extensive industry networks, including established relationships with key service providers, legal experts and other outsourced fund resources. By leveraging these established networks, new firms can bypass the often lengthy and complex timelines associated with vetting and securing partnerships and infrastructure with these providers. More importantly, they will be assured that they have access to the most competitive rates. This not only streamlines the onboarding of essential services but also ensures that the firm can quickly establish a robust operational foundation, enhancing its speed to market.
Cost Efficiency and Resource Allocation
An outsourced COO can significantly reduce the initial costs needed for executive staffing and related operational expenditures. By outsourcing the COO and other non-investment functions, firms can avoid the high costs associated with hiring a full-time executive team and setting up in-house operations from scratch.
This cost efficiency not only accelerates the launch process but also optimises resource allocation. The firm effectively hits the ground running as there is no learning curve required of the founders in regards to the operational, legal and compliance set up.
Expert Guidance on Regulatory Compliance
Establishing the firm’s compliance structure is paramount. With the specialised expertise and current regulatory knowledge that an outsourced COO can provide, firms can ensure that all regulatory planning and structures are swiftly put in place, preventing costly delays that could arise from missteps.
Key takeaways
Outsourcing your COO function provides firms with significant advantages for faster market entry.
Beyond operational support, outsourced COOs offer multiple benefits that help reduce barriers to entry in such a regulated and competitive market. From streamlined and cost-efficient setups to the opportunity for operational delegation and access to industry networks and resources, the outsourced COO approach not only accelerates the launch process but also creates a lean and efficient company, setting the foundation for long-term success.
At Fund HQ, we have a team of experienced professionals who offer more than just operational support. We act as a collective, providing invaluable insights and guidance tailored to the unique challenges and opportunities associated with launching a fund. We understand that speed to launch is a common barrier to entry and we aim to support funds looking to accelerate their market entry and gain that first mover advantage.
