Opportunities should continue to be good for hedge fund administration professionals because they provide much-needed third-party transparency for the hedge fund industry. “Cost pressure on hedge funds continues to grow and it gets harder to justify the old 2/20 fee structure that used to be almost unquestioned,” according to ValueWalk.com, an online financial publication. “As fees continue dropping, hedge funds will have to find new ways to reduce their own costs and will have to give [external] fund administration another look.”
The number of new hedge funds launches each year varies based on a wide range of factors. Even if opportunities decline in the hedge fund industry, fund administration professionals can work in the private equity industry, which has a far lower market saturation of third-party fund administration firms. Opportunities are also available in the venture capital industry.