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^® (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.

Phil McCabe, Head of SEI's Investment Managers business, commented on the industry landscape:

"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."

KEY HIGHLIGHTS

• Outsourcing 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 choice of fund administrator.

Commenting on the research, Bryan Astheimer, Head of SEI's Investment Managers business for EMEA, said:

"The increasingly complex environment is putting pressure on firms to meet investor demand while maintaining operational efficiency and improving the bottom line. A single strategic partner that offers data quality, multi-domicile capabilities, and seamless system integrations makes a strong case for consolidating fund administrators. But firms don't need to tackle everything overnight in an ever-evolving landscape. A first step in the right direction can begin with one product launch, taking a phased approach to a journey of transformation."

Methodology

The research is based on a proprietary survey conducted by Cutter Associates of senior decision-makers at private markets firms headquartered in North America, the U.K., and Europe, each with at least $2 billion in assets under management.

The surveyed firms span a range of asset classes, including private equity, private debt, real estate, infrastructure, and hedge funds. The research was conducted at the end of 2024.

¹McKinsey & Company, "Global Private Markets Report 2024: Private markets in a slower era," March 28, 2024.

About SEI^®

SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.

About SEI's Investment Managers business

SEI's Investment Managers business provides advanced operating infrastructure for investment organizations of all types to evolve and compete in a landscape of escalating business challenges. SEI's global operating platform delivers customized and integrated capabilities across a wide range of investment vehicles, strategies, and jurisdictions to investment managers and asset owners. The company's services enable users to gain scale and efficiency, keep pace with marketplace demands, and run their businesses more strategically. As of March 31, 2025, SEI partners with more than 315 traditional asset managers, alternative managers, and sovereign wealth managers, including 43 of the top 100 asset managers worldwide.* For more information, visit seic.com/ims.

*Based on Pensions & Investments' "Largest Money Managers" 2023 ranking.

About Cutter Associates

Cutter Associates LLC serves the operational, technology, and client experience needs of the global asset and wealth management industry, providing companies with the tools and services they need to be successful. With deep industry and domain experience and expertise, Cutter Associates provides global consulting, independent research, exclusive members-only events, process benchmarking, and a vast peer network. Headquartered in Rockland, Massachusetts, and owned by Tokyo-based NRI Group, Cutter Associates offers services in the United States, Canada, Australia, United Kingdom, European Union, Singapore, and Asia. For more information, visit us www.cutterassociates.com and connect on LinkedIn.

Important information

Information provided by SEI Investment Managers business; SEI Investments Global Fund Services Limited; SEI Investments–Depositary and Custodial Services (Ireland) Limited; SEI Investments– Luxembourg S.A.; and SEI Investments (Europe) Limited, which are wholly owned subsidiaries of SEI Investments Company. The Investment Managers business is an internal business unit of SEI Investments Company.

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SOURCE SEI Investments Company