The Evolution of Education and Fund Management: Lessons from a College Campus Visit

This past weekend, I traveled down to Tucson to visit my youngest son who attends the University of Arizona, Eller College of Management . Being back on a bustling college campus on homecoming weekend (where Arizona unfortunately got crushed by Colorado) was a nostalgic journey that reminded me of my own college days over 30 years ago and what a different business world my son will face when he enters the workforce soon. The business part of me couldn’t help but draw parallels to the massive changes I've witnessed in fund management and administration over the same years. Reflecting on these changes during my time with him and while traveling this weekend highlighted for me the amazing opportunities that exist for a new workforce, fund managers, and basically anyone who is willing to evolve, learn and grow.

When I went to the 美国加州大学戴维斯分校 in the 1980s, our academic tools were limited to typewriters (one skill that translated!), mainframes (which I rarely used), and physical libraries (which I frequented). Research required hours of manual searching through card catalogs and stacks of books. Today, my son has access to all the information in the world just one or a few clicks away on a device he carries with him 24/7. Laptops, tablets, smartphones, and other tools are ubiquitous, allowing students to conduct research, complete assignments, and collaborate with peers from anywhere, anytime.

Communication has undergone a radical transformation as well. My son was “snapping” with his friends constantly while we were together, communicating in real time with anyone he chooses. In my college days, staying in touch meant using landlines or writing letters that I had to put in the U.S. mail. (Wow, that is hard to believe.) Now, students are constantly connected through social media, instant messaging, and video calls. This connectivity facilitates networking and collaboration on a global scale in a matter of seconds, dramatically changing the opportunities available to them as they look towards entering the workforce.

Even the Greek system seemed better for him than it was for me (or maybe he just uses it more effectively than I did). He is part of a business fraternity that is already providing him valuable skills, connections, and opportunities while in school and giving him a head start on internships and job opportunities well before graduation.

Parallels Between Campus Life and Fund Administration

Reflecting on these changes in college life led me to consider how fund management and fund administration have massively evolved over the past decade. For emerging and middle-market managers, the landscape has been transformed, driven by forward-thinking approaches and technological advancements. When I started managing my first fund in 1999, I didn’t even know what a fund administrator was or what they did and, knowing what I know now, couldn’t have got one to take me on as an emerging manager client even if I had been aware of it!

Back then, there was no such thing as an investor portal (or if there was it was nothing more than a rudimentary repository for document access). Now, just as students leverage technology for faster and better learning and communication, fund administration has embraced digital tools to enhance efficiency, accuracy, and transparency. Advanced technologies like AI and blockchain are rapidly becoming integral to fund administration processes, helping streamline real-time reporting, automating complex reconciliations, and offering predictive analytics that were once unimaginable to any but the largest institutional clients. These tools help ensure calculations are both fast and accurate, crucial for maintaining trust and competitiveness for emerging managers. The combination of professional third party administration and sophisticated tools help these emerging and middle market managers level the playing field with larger competitors.

In the private fund world, where reporting used to be optional but is now expected by most investors as table stakes (even though still not technically required legally), the shift from occasional paper statements to real-time digital portals mirrors the communication revolution experienced by today's students. Fund managers can now offer investors 24/7 access to their portfolio information through secure online platforms. This capability builds trust and enhances investor relations, much like how continual connectivity can enhance student interactions (unless they don’t get the attention they want)!

And, just as students can specialize in niche fields, fund administrators now offer more and more tailored services for various asset classes and compliance requirements. This specialization empowers emerging managers to navigate complex regulatory landscapes with greater confidence. By being experts in their business and maintaining regular and real-time communication with clients, fund administrators play a crucial role in supporting the growth and professionalism of emerging fund managers and enhancing their credibility with investors. This was not even an option as recently as a decade ago.

Visiting my son's university was a poignant reminder of how much has changed since my own college days. The advancements in technology, communication, globalization, and specialization that define his educational experience are mirrored in the evolution of administration services for middle market and emerging fund managers. Just as my son is preparing himself to excel in a rapidly evolving world, today's fund managers can also thrive by embracing these advancements and partnering with a forward-thinking fund administrator. Maybe the comparison is a stretch, but this is where my mind went as I flew home to Portland after an enjoyable and reflective weekend with my son.