By Jasper Koch, Business Development Director, Netherlands
The Dutch asset management landscape is undergoing a significant transformation, with precision and efficiency becoming non-negotiable requirements in today’s competitive environment. As market dynamics shift and operational demands intensify, many asset managers are reassessing their fund administration partnerships to ensure they remain well-positioned for sustainable growth.
The relationship between an asset manager and its fund administrator extends far beyond basic operational support. These partnerships encompass investor onboarding, fund accounting, regulatory compliance, and strategic reporting—all critical components that can significantly impact an asset manager’s overall success and market positioning.
Market shifts demand operational agility
Recent market data reveals the scale of transformation occurring within the Dutch asset management sector. According to Preqin, capital raised by Dutch asset managers has dropped sharply, from a peak of USD 1,636.16 billion in 2021 down to USD 972 billion in 2024. While fewer funds are being launched, the tendency is that fund size is increasing, signaling a shift toward larger, more capital-intensive vehicles.
This trend suggests a significant consolidation in the market, where scale and efficiency have become critical differentiators. As a recent Goldman Sachs report notes, “operational value creation is likely to remain the key driver of returns” in this evolving landscape.
Key operational imperatives for modern asset managers
In this new environment, asset managers must:
- Streamline operations
- Reduce overheads
- Enhance decision-making
- Improve investor reporting
Larger funds inherently bring greater complexity, necessitating robust systems, scalable processes and access to specialised expertise.
Small and mid-sized managers also face unique hurdles:
- Limited budgets for technology upgrades and compliance systems
- Talent constraints, especially in specialised areas like regulatory reporting or fund accounting
- Manual processes that increase operational risk and reduce scalability
- Difficulty attracting institutional investors without robust operational frameworks
According to PwC, many smaller firms continue to rely heavily on manual intervention in back-office functions, which becomes increasingly complex during M&A or restructuring activities. KPMG research4 further highlights that smaller managers are more vulnerable to rising compliance costs and investor demands for transparency, making strategic partnerships with experienced fund administrators increasing essential.
Decoding the switch: What drives administrator transitions?
Switching fund administrators is a strategic move, often driven by a combination of factors:
1. Improved service quality
Asset managers increasingly seek administrators with specialised expertise in fund accounting, investor reporting and compliance management. Better alignment with the firm’s evolving needs and the provision of strategic insight beyond basic operational support has become a key differentiator.
2. Cost efficiency
More competitive fee structures and reduced operational overhead remain primary considerations, particulary for smaller managers operating under tighter budget contraints. The ability to demonstrate clear return on investment through operational efficiency is increasingly important.
3. Technology integration and reporting capabilties
According to EY, 16% of asset managers cite client experience and reporting as top strategic priorities. Many firms continue to rely on manual processes, especially during M&A activities, creating operational risks and limiting scalability. There’s a growing need to leverage AI and automation to improve efficiency and transparency.
4. Regulatory compliance
Evolving regulations require administrators with comprehensive multi-jurisdictional expertise. Co-sourcing compliance functions can provide both external insight and internal control, ensuring regulatory obligations are met while maintaining operational flexibility.
5. Operational challenges
Poor service, missed deadlines, or outdated systems often trigger a switch. The need for reliable, scalable operations is paramount
6. Geographic expansion
Firms expanding into new markets require administrators with both global reach and local knowledge, ensuring seamless operations across multiple jurisdictions while maintaining regulatory compliance.
Strategic models for operational enhancement
Two primary models have emerged as effective solutions for addressing these operational challenges: outsourcing and co-sourcing approaches.
Outsourcing involves delegating non-core functions such as back-office operations, compliance and reporting to external providers. This model reduces costs while providing access to advanced technology and specialised expertise that may not be economically viable to maintain in-house.
Co-sourcing represents a hybrid approach where internal teams retain control over strategic functions while external partners handle operational execution. This model proves particularly effective in compliance and audit functions where regulatory risk is high, as it maintains internal oversight while leveraging external expertise.
Both models offer scalability, cost efficiency and risk mitigation capabilities that are essential in today’s competitive market environment.
How can IQ-EQ help
We offer a seamless transition through our IQ-EQ Switch solution, specifically designed for asset managers looking to upgrade their operational model.
Our unique offering includes:
- Full-service fund and asset management product suite for alternative fund managers
- Advanced technology, including MaxComply™ for onboarding and compliance, which ensures a smooth, compliant and quick transition, eliminating delays and manual errors
- Expert local team with global reach
- End-to-end support for data migration, reporting, and investor communications. Our dedicated data migration team ensures integrity and seamless data transfers
- Dedicated implementation team: Our strategic client onboarding experts manage the process from start to finish, ensuring continuity
- Access to IQ-EQ Connect: Provides clients with real-time access to fund data, reporting tools and compliance features
Whether you’re looking to enhance service quality, reduce costs, or future-proof your operations, we’re your partner for growth.
Ready to make the switch?
Switching administrators is more than a tactical move, it’s a strategic upgrade. With the right partner, you can unlock operational efficiency, improve investor relations and position your firm for long-term success.
Contact us today to learn how we can support your transition.
