6 Banking Solutions for Fund Administrators

It’s Time to Make Your Daily Work Easier

As a fund administrator for a commercial real estate firm, every day brings new challenges your way. First and foremost, you act as a steward of the resources that have been entrusted to you by your limited partners and other investors. It is your responsibility to protect, manage, and grow those resources. Second, you have to manage a variety of financial tasks and transactions to keep the firm moving forward toward its growth goals.

Both of these responsibilities bring a great deal of pressure, time sensitivity, and accuracy pressures. Unfortunately, many commercial real estate firms today are still behind the curve when it comes to streamlining and automating many of these important functions. Today more than ever, banking solutions for fund administrators are needed to reduce administrative workload, eliminate complexity, and ensure that investors are receiving the value they expect from you and your team.

The challenge, however, is finding the right solution to address all of these needs. Here, we’ll explore several areas where a consolidated and streamlined financial technology solution can make your life and work easier and help those who’ve invested in your fund realize the value they’re looking for.

Make banking count: Learn how to streamline a variety of financial activities to simplify your daily workload.

Open Accounts

It’s no secret that every asset under your control, as well as all future assets, requires a number of bank accounts. These can be for fundraising, operations, rent, special projects, and more. If you’ve been doing this manually, or if you’ve even been opening accounts online with your financial institution, managing all of those accounts can quickly become overwhelming. Today, funded administrators need to be able to open bank accounts quickly and from a single platform that’s tied into investment management capabilities. Imagine being able to open accounts for a specific asset and tying those accounts to that asset and related information — all without having to leave your desk.

Manage Investments

When your LPs decide to invest in a deal, it’s important to be able to collect and manage those funds quickly and easily. Dealing with payments manually, or even with paper checks, creates far too much risk and administrative hassle. You and your team do not need to be distracted by these kinds of tasks. Having a quick and streamlined way to receive funds from investors and funneling them into the correct account automatically makes life simpler for you and your team and shows your investors that you’re a sophisticated operation that is keeping their money safe and properly allocated.

Automate Distributions

As you focus on growing revenue, you’ll of course issue returns to your LPs. Typically done on a quarterly basis, distributions historically have been handled manually. Sometimes general partners even issue paper checks and deliver them in person. While there’s nothing wrong with focusing on relationships, cutting checks and delivering them personally, or even mailing them, is tedious and creates opportunities for error. When the time comes to distribute payments, the right solution will automatically extract funds from the accounts that you specify and transfer them into your LPs’ bank accounts in a matter of clicks.

Pay Vendors

Throughout the daily operation of your assets, you’ll make a variety of payments to different vendors. These can be for repairs and maintenance, legal matters, remodeling, and other investments into the assets themselves. Just as with any other transaction, being able to automate this reduces complexity, lost time, and risk. Funds can be wired to virtually any account for your vendors, ensuring swift payment that is trackable and can be tied to an asset, fund, or syndication.

Financial Reporting

Whether it’s for tax season or just to check on how assets are performing, being able to generate reports — cash flow, profitability, investments, and so on — is critical to investor relations. It enables transparency, helps to build lasting relationships, and more — but at the same time, you and your team have strategic goals to hit. You need to be focused on growing revenue and adding value. A great way to do the latter when it comes to reporting is automating investor reporting. With a self-service platform, your LPs can — at any time — get the information they need to make decisions, report on taxes, and more.

Grow Capital

Last but certainly not least, remember that as a fund administrator, you need to find ways to make existing capital work better for you and your LPs. While you likely have a variety of accounts in play, consider whether they’re helping you grow your uninvested capital. As you gather funds from LPs for new opportunities, or for any capital not yet invested elsewhere, being able to generate meaningful interest will go a long way in helping you maximize revenue and continue to deliver success for all parties.

Success Starts with Covercy

If you’ve been looking for banking solutions for fund administrators, Covercy is your all-in-one platform. Combining investment management with banking, our platform enables GPs and other commercial real estate professionals to:

• Manage all of their assets in one easy-to-use tool
• Open, manage, and report on bank accounts and financial activity
• Fundraise for new deal opportunities and issue capital calls
• Track investor interest in new deals and market properties to them
• Automate distributions to investors as asset revenue grows
• Provide investors with a self-service reporting solution
• Manage all relevant documentation per asset in an organized way
• And much, much more

Connect with us today to learn more about Covercy and how our banking solutions for fund administrators can help you maximize performance this year — and for years to come. Schedule your private demo today.