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. …
Category: Migrating Back Office
Migrating to another fund administration offering is typically a straightforward process that can take between three and six weeks.
Given the recent problems with Carta, numerous managers have initiated a switching process in Q1 2024. In this scenario, the previous vendor, Carta, will close the 2023 books, being double checked by the new vendor. Then, back office and reporting from Q1 2024 going forward will be handled by the new vendor.
The complexity of the migrations is based on the size of the fund, the age of the fund, the number of limited partners and any special terms. Most of the switching work is managed by the vendors. The primary responsibility of the fund manager in a transition is to select a new vendor and supervise the migration process. …
AngelList is an online platform that allows startups and venture capital managers to source funding from amateur investors. It is widely perceived as an “amateur platform.” Despite its value as a starting point, more serious investors and venture capital managers often outgrow its features and capabilities, choosing instead to forge their own path. This article explains why and how this transition happens.
NOTE: It is being reported that syndicate LP funding is down 90% on AngelList in 2023, making it a critical time to switch for professional managers.
Going Pro from AngelList
AngelList serves as an essential stepping stone for venture capital beginners, offering easy access, educational resources, and opportunities for small-scale investments. Yet, as managers gain experience and their investment skills evolve, the platform’s limitations can become apparent.…
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Assure Migration
Assure, one of the leading providers of special purpose vehicles (SPVs), has collapsed and is rumored to be filing for bankruptcy. According to numerous sources, they have terminated the majority of their staff, and they are referring customers to other providers.
Assure provided fund admin, including operations and accounting support, for hundreds of SPVs and a smaller number of funds. The majority of fund service providers are already overloaded and are unable to properly service the incoming business.
For example, Carta has experienced product delays and has told new leads that Q3 and year end reporting may not be possible. Allocations downsized their staff and has limited capacity, and, according to rumors, a number of key team members are leaving.
Overzealous salespeople are promising seamless transitions.…