Spoke to over 70 CFO’s managing alternative asset portfolios in the last month, (our personal monthly record) and the one consistent question was “Why cant we outsource all the record keeping, on Deals and Activities in our portfolio. The outsourcers have the technology and the resources. We just need to know about our returns, which we track.”
Outsourcing provides tremendous benefits, including lowering costs and lower overheads. But who does it work for.
Imagine building a new NBA franchise, which you want to take all the way to the finals.
You can decide — you never want home court advantage. Dont need the cost of building a new arena , that can be outsourced. And dont need the Fan base, we can outsource them!!! Its way less expensive.
The portfolio that you are managing is the NBA franchise and all the Data that the portfolio generates is pretty much the fan base. Decide whether you as the manager outsources his valuable data or pampers it.