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SEI Research Finds 43 Percent of Private Markets Staff Consumed by Fund Admin Replication
High Replication, Multi-Administrator Model Contributes to Increased Costs and Inefficiencies OAKS, Pa. and LONDON, June 10, 2025 /PRNewswire/ -- SEI®
About this update from Sei Investments Company
[{"type":"text","content":"High Replication, Multi-Administrator Model Contributes to Increased Costs and Inefficiencies\nOAKS, Pa. and LONDON, June 10, 2025 /PRNewswire/ -- SEI® (NASDAQ: SEIC) today unveiled research that found private market asset managers identify data replication and fragmentation from multiple fund administrators as a challenge, causing operational inefficiencies, resource drain, and increased costs. Conducted in partnership with Cutter Associates, the survey examined the private market fund administration landscape and the current and target state replication model through feedback from U.S.- and U.K.-based managers.\n\nPhil McCabe, Head of SEI's Investment Managers business, commented on the industry landscape:\n\"Global private markets assets under management have grown nearly 20% annually since 20181. As firms scale to meet demand, they can find themselves working with multiple fund administrators—whether that's driven by regulatory pressures, cross-border operations, or M&A activity over time. Managing data replication in house through technology and staffing can be a drain on resources, but a modern fund administrator can serve as a primary strategic partner in managing multiple asset classes and domiciles, while consolidating data.\"\nKEY HIGHLIGHTS\nOutsourcing is widespread, but so is replication. Many firms duplicate their administrators' work in-house, with 55% keeping an internal accounting book of record, and 43% saying more than half of their non-investment staff are involved in oversight or replication.Replication costs are high, and those costs aren't only financial. One-third of firms are concerned about technology costs, and replication delays reporting (47% say by three or more days) and threatens data visibility. But many firms feel compelled to maintain the status quo due to risk concerns or investments already made in internal systems.The fewer fund administrators, the better. While the majority of firms (57%) work with multiple administrators—more than seven in some cases, 58% indicated one provider as their ideal number, and 21% would like just two providers.The replication model is shifting. One-quarter (24%) of firms are actively reducing replication, and another 55% say they would consider it as part of future strategic plans. Nearly two-thirds (62%) say the ability to reduce replication influences their ch...