When Your Administrator Becomes a Liability

Relying on a single administrator had created concentrated risk. Capital calls, distributions, preferred return calculations, and management fees all flowed through the same provider—and that provider was struggling. The CFO conducted a detailed assessment and found problems across every key function.

The administrator's siloed team structure meant that resolving calculation discrepancies or answering investor questions required navigating communication barriers, with delays at each step. Complex waterfall calculations stretched response times as questions bounced between groups.

To address these challenges, the CFO decided to bring critical functions in-house in order to improve service quality, reduce errors, and build a more resilient operational structure aligned with the fund's needs.

Bringing Critical Functions In-House

After researching options, the CFO identified Maybern as the tool that could enable the fund to bring critical functions in-house while partnering where it made sense.

The implementation followed a deliberate approach. The CFO focused on bringing key workflows in-house—preferred return calculations, management fees, investor-level reporting—while keeping others with external providers. The goal was the right balance of internal control and external expertise.

Maybern's platform consolidated historical performance data, creating a comprehensive view of fund operations and establishing a single source of truth for fund-level and investor-level cash flows. This centralization enabled executive dashboards with quick access to key metrics across all funds.

With Maybern in place, the team replaced manual preferred return tracking with automated calculations. Results were viewable anytime, down to the commitment and investor level. Quarterly management fees could be calculated rapidly, with easy processing of fee offsets, breaks, and side letter arrangements—and clear visibility into gross-to-net calculations.

Internal teams quickly became far more productive. By automating data compilation and reconciliation, team members could focus on analyzing data rather than managing it—shifting toward strategic work like scenario analysis and investor reporting.

What the Fund Gained Long-Term

Beyond the immediate efficiency gains, the new structure gave the firm improved visibility, scalability, and reduced operational risk.

Real-time tracking now covers both in-house and outsourced operations, with easy access to audit LP-level performance data including IRR calculations at individual and aggregated levels. Centralized dashboards provide key metrics across all funds and support scenario analyses for operational decisions.

The structure adapts to changing fund requirements and market conditions—future funds can grow without proportional increases in internal resources. And with critical functions now distributed between in-house and external providers, the fund reduced its vulnerability to single-point failures.

Conclusion

Maybern's co-sourcing model gave the fund what its administrator couldn't—accurate calculations, real-time visibility, and a structure that scales without adding headcount. The CFO kept the fund administrator for select functions, but now has direct control over the areas that were causing the most pain. Instead of chasing down discrepancies and navigating communication barriers, the finance team is free to focus on analysis and investor relationships.