Yuriy Shterk, Chief Product Officer at Allvue Systems, discussed how co-sourcing can potentially transform shadow accounting processes in an Opinion article for Funds Europe.

The private equity space in the EU and UK has a well established preference for both outsourced fund administration and duplicative shadow accounting. This practice, cultivated in part by the region’s regulatory environment, effectively doubles the administrative burden, but is seen by many as the best option given the regulatory environment of the region.

But, as Shterk explains, a new innovative software and service arrangement is poised to upend this. Co-sourcing, in which a fund administrator executes a fund manager’s accounting and reporting workflows through that fund manager’s back-office software, could eliminate the need for shadow accounting without distancing GPs from their data.

In the Funds Europe article, Shterk breaks down:

• The challenges created by shadow accounting
• How co-sourcing works in practice
• The potential benefits for fund managers and administrators
• What a “co-sourced future” might look like for the EU and UK

Read it here: “The next evolution of shadow accounting is co-sourcing”

Learn more about co-sourcing

Looking to dive deeper on co-sourcing? Learn more at the following resources:

• Primer: What is Co-Sourcing?
• Whitepaper: Co-Sourcing is a Win-Win for Fund Managers
• Whitepaper: Co-sourcing is the Future of Fund Administration
• In Conversation with IQ-EQ and Standish: Why Co-Sourcing and Why Now?