How to Migrate Your VC Fund Admin: A Complete Guide

Venture capital firms occasionally need to change their fund administrator for various reasons, from seeking better technology solutions to reducing errors. As a result of the recent failure of Assure, the errors and delays with Carta, and the lack of service with AngelList, many funds have been migrating fund admin providers. 

Top rated solutions like Decile Partners or Aduro have been picking up the migration business. This guide walks through the key considerations and steps for successfully migrating your fund administration provider while minimizing disruption to your operations.

What is Fund Migration?

Fund migration is the process of transitioning all operational, financial, and compliance functions from one administrator to another. This includes transferring historical data, setting up the new systems, and adjusting processes. 

In general, fund migrations take between two and six weeks with most of the work handled by the providers. It is common to find and correct errors when doing a fund migration, and funds normally end up with improved operations after a migration. Many firms find that the migration process serves as an opportunity to:

• Upgrade technology systems and reporting capabilities
• Enhance LP communication processes
• Improve data accuracy and accessibility
• Streamline operational workflows
• Implement more robust internal controls
• Strengthen compliance procedures
• Establish better practices

When Should a VC Firm Change Fund Administrators?

Fund administration is critical to maintaining LP confidence and operational excellence. There are positive reasons and negative reasons to switch a fund administrator.

On the positive side, a venture firm may be expanding and need a different type of support, effectively upgrading. If a firm gets large, it may insource activities and therefore need a different type of fund administrator, maybe one focused more on compliance. A fund may be seeking more institutional investors, and then it will want a more trusted administrator.

On the negative side, it is common to experience problems with a fund administrator that are warning signs, such as:

Warning Signs

• Consistent delays in financial reporting and LP communications
• Recurring errors in capital account statements or distributions
• Poor responsiveness to time-sensitive requests
• Limited or outdated technology platform
• Missing strategic advisory capabilities
• Unethical or inappropriate practices
• High turnover of support staff
• Cost inefficiencies or hidden fees

Real-World Example

Any one of the problems faced in the following scenario would be a good reason to initiate a migration, and the combination of multiple problems makes it more of a need than a want.

A $25MM seed fund with 65 LPs is consistently receiving data for quarterly reports 60 days after quarter-end, well beyond industry standard timelines. They also provide K-1’s over 6 months after year end and have made errors on multiple K-1’s. Despite multiple escalations, customer support remains unresponsive, often taking 5-7 days to address urgent matters. The fund has missed several critical filing deadlines due to delays, and LPs are expressing growing concerns about the administrator’s competence.

How to Choose a New Fund Administrator

There are three types of administrators: boutiques, large service firms, and new platforms. 

Boutique Administrators

Specialized firms focused exclusively on venture capital and private equity. These providers typically offer high-touch service and deep expertise in early-stage investing but may have limited technological capabilities.

• Advantages: Personalized service, VC expertise, flexible solutions
• Limitations: Sometimes lacking advanced technology, may struggle with scale

Large Service Firms 

Traditional financial services companies that provide fund administration as part of a broader service offering. These firms offer institutional-grade infrastructure but may lack specialized VC expertise.

• Advantages: Global presence, robust infrastructure, comprehensive services
• Limitations: Less flexible, higher costs, generalist approach

New Platform Providers 

Technology-first administrators that combine modern software platforms with professional services. These providers often offer integrated solutions but may be relatively new to the market.

• Advantages: Advanced technology, competitive pricing, integrated tools
• Limitations: Shorter track record, still building out service offerings

What to Look For in a Fund Administrator

• Technology Platform: Modern, integrated solutions with real-time data access
• Venture Expertise: Deep understanding of VC-specific challenges and requirements
• Service Model: Proactive support and strategic guidance
• Pricing Structure: Transparent, predictable fees without hidden costs
• Integration Capabilities: Seamless connection with legal, banking, and other services
• Security Standards: Robust data protection and compliance measures
• Track Record: Strong reputation and positive client testimonials

What is the Fund Admin Migration Process?

The good news is that changing fund administrators is simpler than you might expect. While timelines can vary from 2-6 weeks depending on complexity, a typical migration takes about 4 weeks. As a GP, your time investment is minimal – most of the heavy lifting is handled by your new administrator.

Here’s what the 4-week journey looks like from the manager’s perspective:

Week 1: Planning & Kickoff

Your main tasks:

• Have a kickoff call with your new administrator
• Share access to current systems and reports
• Introduce key team members
• Review proposed timeline

Pro tip: Use this as an opportunity to rethink your LP reporting format and frequency. Many GPs find this is the perfect time to upgrade their investor communications.

Week 2: Data Handoff

Your main tasks:

• Send latest financial statements
• Share LP contact list
• Provide portfolio company information
• Review current processes

Pro tip: This is a great moment to clean up your data and establish better organizing principles for your firm. Your new administrator can help implement best practices.

Week 3: Review & Testing

Your main tasks:

• Review initial data migration
• Test new portal access
• Provide feedback on new reports
• Plan LP communication

Pro tip: Take advantage of this phase to explore new features and capabilities that weren’t available with your previous administrator. Many GPs discover valuable tools they didn’t know they needed.

Week 4: Launch

Your main tasks:

• Send LP notification email (template provided)
• Complete final sign-offs
• Begin using new systems

Pro tip: Use this transition to position your firm as more institutional with LPs. A new, more sophisticated fund administrator can signal your firm’s growth and maturity.

The entire process typically requires only 4-6 hours of GP time spread across the four weeks. Your new administrator manages the complex parts: data migration, system setup, testing, and validation. They’ll provide templates, handle the technical details, and guide you through each step.

Remember: This is more than just a vendor change – it’s an opportunity to upgrade your firm’s operations, improve LP satisfaction, and set yourself up for scale. Many GPs report that the migration process helped them discover and implement better practices across their organization.

How to Get Started with a Fund Migration?

Starting a fund migration represents an exciting opportunity to elevate your firm’s operations and set a new standard for LP service. The process begins with a simple yet crucial discovery phase that typically takes just 7-10 days. First, take a moment to envision your ideal fund operations – from seamless LP communications to automated reporting and robust compliance. This vision, combined with a clear understanding of your current pain points, will guide your search for the perfect administrator partner.

The evaluation process is your chance to see what’s possible in modern fund administration. As you review potential partners, you’ll discover new technologies and best practices that can transform your operations. Many GPs report that the research phase opened their eyes to capabilities they didn’t know existed, from AI-powered reporting to sophisticated LP portals. This is your opportunity to not just change providers, but to reimagine how your firm operates.

Pro Tips for Getting Started:

• Time your migration between quarterly reporting cycles if possible
• Have your latest financial statements and LP information readily available
• Keep your current administrator until the migration is complete
• Consider starting with a newer fund if you manage multiple vehicles
• Use this as an opportunity to clean up any historical data issues

Conclusion

With many VC firms reevaluating their fund administration needs due to recent market changes, switching providers has become increasingly common. Whether you’re moving away from a struggling provider or upgrading to support growth, the migration process offers an opportunity to improve your firm’s operations.

The key to a successful migration is choosing the right partner and letting them handle the heavy lifting. Most GPs are surprised by how little of their time is actually required – typically just 4-6 hours over a four-week period. With proper planning and the right partner, you can use this transition to:

• Upgrade your technology and reporting capabilities
• Improve LP satisfaction and communication
• Strengthen your operational foundation
• Position your firm for future growth

Remember, your fund administrator is a crucial partner in your firm’s success. Taking the time to make a thoughtful switch now can save countless hours and prevent numerous headaches in the future.

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