By: Jeffrey Schenck
Senior Product Marketing Manager
November 24, 2025
Evolving regulation, technology, and investor expectations are redefining operational priorities across the European private funds industry.
Regulation, technology, and investor expectations are reshaping how European private funds operate. Fund administrators and operations teams are navigating one of the most transformative periods in decades, redefining how firms manage data, provide transparency, and scale efficiently.
These themes were front and center at Allvue’s recent breakfast event in Copenhagen for Nordic fund administrators and general partners (GPs). Philitsa Hanson, Allvue’s Head of Product for Equity and Fund Administration, and Jens Meiner, Partner at Deloitte Consulting, explored how operating models, data strategies, and AI are reshaping fund administration and operations.
Key Takeaways
- Hybrid operating models are redefining fund administration across Europe.
- AI is moving beyond automation to intelligence.
- Data governance and regulatory agility are becoming competitive advantages.
- Modular ecosystems help firms scale securely and efficiently.
This conversation comes at a pivotal time for European private markets, where investment managers and fund administrators are strengthening transparency and operational controls in response to mounting pressure from regulators and investors.
Hybrid Operating Models Redefine Efficiency and Control
Firms are blending internal expertise with outsourced scale to achieve agility and control.
The boundaries between insourcing, outsourcing, and co-sourcing are blurring as firms adopt hybrid models that balance control with scalability.
“We’re seeing more hybrid setups combining insourced, outsourced, and co-sourced models, often across different systems and jurisdictions,” Jens Meiner, Partner at Deloitte Consulting, told the audience. “There are many variables influencing how firms make those decisions.”
Model evolution also influences product thinking. As Philitsa Hanson explained: “At Allvue, when we design our platforms, we ensure the same level of auditability and transparency regardless of whether the solution is used internally or through an outsourced partner.”
And rather than viewing outsourcing purely as a cost-saving measure, investment managers are taking a more strategic view. Co-sourcing arrangements are gaining traction because they preserve transparency and control over data while leveraging external infrastructure and talent. For many GPs, this blended model provides the best balance of agility, cost efficiency, and operational governance.
Why Sourcing Strategies Must Evolve with Firm Growth
Growth transforms sourcing priorities—from cost focus to control and data-driven agility.
Operations sourcing strategies evolve as firms grow. Early-stage managers often outsource to focus on fundraising and performance, while larger firms seek tighter integration and more control. Modular technology now lets organizations adjust components without major disruption, enabling continuous improvement instead of large-scale overhauls.
This agility is redefining how both emerging and established managers structure operations to address their growth strategies, risk appetite, and investor base.
Building Investor Trust Through Transparent Technology
Real-time visibility and auditability are now table stakes for investor trust.
Regardless of whether operations are internal or outsourced, accountability ultimately rests with the fund. As managers refine their sourcing models, technology must provide visibility and control.
“Technology provides the trust,” Philitsa said. “Reliability, consistency, and transparency aren’t just operational goals. They’ve become part of a firm’s marketing story. You attract investors by demonstrating how robust and transparent your operations are.”
For many Allvue clients, this focus on transparency extends to how they use our technology, particularly as AI reshape how firms analyze, validate, and act on information.
AI in Fund Administration: From Automation to Intelligence
Intelligent systems are moving beyond automation to deliver predictive insights and efficiency gains.
“Automation isn’t new in fund administration,” Philitsa noted. “The real innovation comes from AI that informs, not just performs—surfacing anomalies and enabling teams to solve problems before they happen.”
However, AI adoption will take time, as demonstrated by an audience show of hands. “There are early AI use cases, particularly in due diligence, but adoption across core systems is still in its infancy,” Jens added.
As adoption grows, explainability and governance will determine success. At Allvue, we’re building AI-enabled solutions that drive efficiency and augment human expertise while enabling the transparency sought by private markets.
Data Governance: The Cornerstone of Scalable Fund Operations
Strong data governance now underpins both compliance and the next wave of AI adoption.
Data fragmentation remains one of the industry’s biggest barriers. Establishing a single, trusted source of truth is now a competitive necessity. “It’s the old rule: your analysis is only as good as your data,” Jens explained. “Without consistent, well-structured data, applying advanced technology like AI becomes nearly impossible.”
“Data aggregation, normalization, and accuracy are major challenges,” Philitsa added. “Every firm needs clear rules for how data is sourced, prioritized, and validated.”
Allvue’s platform links Investment Management, Investor Relations, and Financial Operations, a front-to-back-office approach that paves the way for consistent analytics and reporting. This data-driven, interconnected approach is designed to help firms successfully address current demands and future requirements—the infamous “unknown unknowns” that keep senior leaders awake at night.
Regulation and Investor Demands Are Fueling a Transparency Revolution
Evolving rules such as CSRD and SFDR are driving firms toward adaptive reporting systems.
Europe’s complex regulatory landscape, including the Corporate Sustainability Reporting Directive (CSRD), Sustainable Finance Disclosure Regulation (SFDR), and national requirements are demanding new levels of transparency and data quality across the investment value chain.
“Regulation is driving transparency from investor to investment,” Jens stated. “It’s no longer just about performance. It’s about data quality and traceability at every level.”
This landscape is creating new expectations for fund administrators to provide real-time, verifiable data. The ability to pivot quickly as rules evolve is becoming as valuable as compliance itself.
Balancing Scale and Specialization: The New Fund Operating Model
Firms are combining vertical expertise with horizontal scale through integrated operating models.
Beyond compliance, firms are also rethinking the structure of their operations to balance specialization and scale. “We focus heavily on the intersection between vertical specialization and horizontal efficiency, because that’s where technology truly adds value,” Philitsa said.
When it comes to vertical versus horizontal models, “there’s no single right answer,” Jens added. “Fund administration is data-intensive, not transaction-intensive, and because every transaction is unique, achieving scale is always a challenge.”
Increasingly, firms are blending both approaches—retaining vertical expertise for complex mandates while centralizing data and processes horizontally. As Philitsa described it, this hybrid approach is paving the way for a “super middle office”, where AI bridges front and back offices through shared data and intelligent workflows.
The Future Is Modular: Building Resilient Fund Administration
Modular technology enables faster innovation, continuous improvement, and lower transformation risk.
“Future-ready firms need modular technology,” Jens said in conclusion. “We’re well past the era of massive, monolithic implementations. Today it’s about replacing components quickly and adapting as you go.”
Modularity strengthens resilience and accelerates innovation, but technology is not enough. Human judgment—where to invest, how to manage risk, when to change course—remains the defining factor. Firms that excel will combine disciplined data strategy with flexible technology and empowered talent.
Allvue’s Perspective: Enabling the Next Generation of Fund Administration
At Allvue, modularity is at the heart of our product design, enabling fund administrators and the firms they serve to scale technology while maintaining transparency and control. Our platform provides an interconnected ecosystem, including:
Request a free demo to learn more about how Allvue supports operational transformation.
More About The Author
Jeffrey Schenck
Senior Product Marketing Manager
