The Fund Manager's Guide to FX-as-a-Service
A common theme in private capital right now is fund managers seeking out opportunities to outsource non-core activities as they build for scale. Even for those processes that would be considered ‘core’, there may also be opportunities to automate, improve efficiency and eradicate operational risk.
For a first-time manager, they might look at FX as a process, from start to finish, that places a disproportionate amount of strain on their finance function.
Fiduciaries must implement a multi- FX counterparty framework that delivers best execution and to get to that point alone can place huge demands on different teams across the business including finance, compliance, legal and, depending on the resources within those business units, the partners.
The obvious question being, shouldn’t the majority of resources be focused on fundraising, deal sourcing and establishing a track record?