Use case · Investment operations
Scale your investment operations before the strain shows up in the NAV
Growth adds funds, counterparties and instruments faster than operations teams can hire. We take on the middle-office work so your team keeps control without carrying every process.
In one minute
Scaling investment operations means expanding trade support, reconciliations, treasury, valuations and loan servicing to keep pace with new funds, strategies and counterparties without adding key-person risk or manual workarounds. Fundtec provides middle-office investment operations for fund managers, run by asset-class specialists on the client’s systems or on Tychi, with 24/5 coverage and documented controls.
Managers at a decision point: a fund to launch, an administrator to change, or an operating model that has to scale.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
When investment operations start to strain
Operations rarely break in one event. The strain builds: a second prime broker, a new credit sleeve, a separately managed account with its own reporting, a larger allocator with a longer DDQ. Each change adds a spreadsheet, a manual check or a late night, and the team that built the original process becomes the only team that understands it.
The cost appears in places a COO cannot ignore: late or restated NAVs, unexplained trade breaks, margin calls missed, and due diligence findings on key-person dependency. Fundtec’s middle office service is designed to take that load while your team keeps oversight and final sign-off.
Hiring alone rarely solves it. New analysts need months to learn the funds, and adding people to an undocumented process adds more versions of it. The durable fix is to document the process, put controls around it and give it to a team whose job is to run it every day, with capacity to absorb the next fund or counterparty without a new hiring round.
Symptoms of operational strain
- 01
Key-person risk
One or two people hold the process knowledge. Leave, illness or resignation puts the close at risk.
- 02
Manual spreadsheets
Reconciliations, fee calculations and cash projections live in spreadsheets with no audit trail or maker-checker review.
- 03
Multiple pricing sources
Prices come from vendors, brokers and valuation agents with no consistent pricing hierarchy or tolerance checks.
- 04
New counterparties
Each new prime broker, custodian or ISDA counterparty means new files, new breaks and new margin workflows.
- 05
New mandates
SMAs, co-investment vehicles and new strategies each need their own books and reporting.
- 06
DDQ pressure
Allocators ask for written procedures, control evidence and backup coverage that do not yet exist.
Which investment operations service fixes which problem
| Problem | Fundtec service | What changes |
|---|---|---|
| No single, reconciled view of positions and P&L | Middle office | Daily P&L, position and cash control across all funds and counterparties |
| Trade breaks, settlement fails and allocation errors | Trade operations | Trade capture, confirmation, allocation and settlement tracked to resolution |
| Cash, margin and collateral managed by email | Treasury operations | Cash projections, margin calls, collateral and payments under dual authorization |
| Inconsistent or unsupported prices | Valuations and pricing | Independent price verification under a documented hierarchy |
| Loan agents, paydowns and accruals tracked by hand | Loan operations | Loan-level servicing, notices, accruals and agent reconciliation |
How scaling with Fundtec works
Operational review
We map your current processes, systems, volumes and pain points and identify where capacity and control are weakest.
Scope and design
Agree which functions Fundtec takes on, the SLAs, cut-off times and escalation paths, and document them in an operational handbook.
Parallel run
Our team runs the processes alongside yours until outputs match and month-end cycles are signed off.
Handover and scale
Responsibility moves function by function. New funds, counterparties and mandates are added to the same process.
Operational due diligence readiness checklist
What allocators typically ask to see. Fundtec builds these as part of taking on the work.
- Written procedures for every critical process
- Daily three-way reconciliation of cash and positions
- Break-aging reports with escalation thresholds
- Documented valuation policy and pricing hierarchy
- Segregation of duties between trading, operations and payments
- Dual authorization on all cash movements
- Named backup for every role and a tested business continuity plan
- Evidence of independent oversight of the administrator’s NAV
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Scale Your Investment Operations
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Ask a specialistFrequently asked questions
When should a fund manager outsource investment operations?
Outsourcing makes sense when growth is adding counterparties, strategies or funds faster than the team can hire, when one or two people hold critical process knowledge, or when allocator due diligence asks for controls you do not yet have. Acting before a NAV restatement or missed margin call is far cheaper than acting after one.
What is the difference between middle office and fund administration?
The middle office sits between the trading desk and the books: trade support, P&L, reconciliations, cash and margin, and pricing checks for the manager. Fund administration is the independent back-office function that keeps the fund’s official books, calculates the NAV and serves investors. Fundtec provides both, as separate or combined engagements.
Do we lose control if Fundtec runs our operations?
No. Fundtec runs the processes on its platform to procedures you approve, and your team keeps oversight and final sign-off on NAV, payments and valuations. Governance, escalation and reporting are set out in the engagement documents.
Can Fundtec handle new prime brokers and ISDA counterparties as we grow?
Yes. Adding a prime broker, custodian or ISDA counterparty is part of the ongoing service. We set up the data feeds, reconciliation rules and margin workflows and add them to the same controls. New mandates and counterparties are absorbed without renegotiating the agreement.
How does outsourcing investment operations help with DDQs?
Allocator DDQs ask for written procedures, reconciliation evidence, segregation of duties, backup coverage and business continuity plans. Fundtec builds and maintains these as part of running the work, so your answers are backed by an operational handbook, break-aging reports and control evidence rather than descriptions of informal practice.
What does it cost to outsource investment operations?
Cost depends on the functions handed over, the number of funds, accounts and counterparties, instrument complexity and required coverage hours. Fundtec prices dedicated teams with fees aligned to AUM growth rather than a fixed cost regardless of growth, and scopes after an operational review of your current volumes and processes. There is no per-seat platform licence cost when Tychi is used.
Which asset classes do Fundtec’s investment operations teams cover?
Fundtec supports equity, fixed income including bonds and T-bills, listed and OTC derivatives such as futures, options and swaps, FX, private credit and syndicated loans, real estate and digital assets. Teams are organized by function and asset class so specialists handle instruments they know.
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Tell us where the strain is showing. We will map which functions to hand over first and what the transition looks like.