Managers switch administrators for better reporting, lower cost, faster service, or to bring funds and SPVs spread across providers onto one platform. The work is in moving the records intact and making sure investors notice only an improvement.
Before you start
- Read your current administration agreement for the notice period, termination fees, and what the administrator must hand over when you leave.
- Pick the timing. Switching mid-year is common; switching while K-1s for the past year are being prepared is not, because the outgoing provider still holds the books the returns are built from.
- Check your fund documents for anything that names the administrator or requires notice to investors.
What has to move
- Capital accounts, contributions, distributions, capital calls and NAV history
- Investor profiles, accreditation and KYC/AML records, and signed subscription documents
- Prior-year K-1s and other tax documents, so investors keep their full history
- Form D and state filing records, with upcoming deadlines
- Bank accounts and wire instructions, or their replacements
The switch, step by step
- Share your structures, investor counts and asset types with the new administrator so it can scope the work.
- Export the records above and have the new administrator map them to its system.
- Reconcile: capital accounts should tie to the bank and to the last statements investors received. Resolve differences before cutover, not after.
- Tell investors what changes for them: a new portal, and new wire instructions if the bank changes.
- Cut over banking, compliance workflows and reporting, then confirm the first statements match.
Common pitfalls
- Moving unreconciled balances, which turns old errors into new statements
- Changing wire instructions without verifying them with investors by phone, a common fraud target
- Losing track of a state filing or Form D amendment that comes due during the switch
Switching to Capital Company
Capital Company runs the migration for you: it reviews your existing records, flags discrepancies, maps the data, and brings your investors onto their new portal with their capital accounts, documents and tax history. See how migrations work.
This content is for informational purposes only and does not constitute legal, tax, or compliance advice. Consult qualified counsel for guidance specific to your situation. Capital Company is not a law firm and does not provide legal advice.