In the field of private equity (PE), funds with larger asset under management (AUM) lack efficiency compared to those with smaller AUM. Scale economy effects may begin to emerge, but soon a number of PE firms will face increasingly complex operations, reducing operating efficiency. These diseconomies of scale can be attributed to the increasing costs of internal middle and back office operations and management of the fund firm.
Here are the factors of middle and back office operation affecting AUM:
- Number of employees
- Number of entities
To deal with the complexity of internal operations of PE funds, Tricor can help you with:
- Business Process Outsourcing
- Digital Transformation
Tricor China’s fund services cover the entire cycle of the PE investment business. As Asia’s leading business expansion specialist, Tricor has a wealth of experience in PE fund operations, from establishment to management. We help fund firms efficiently manage their middle and back office processes through business outsourcing and digital transformation, so as to promote continuous development.
Register and download the full article to learn more. For further enquiries, please email our expert team: communication.china@cn.tricorglobal.com