4 Fund Administration Mistakes You Can’t Afford to Make

Fund administration is the operational heartbeat of any real estate and private equity investment fund. It’s where strategy meets execution, from onboarding investors and issuing capital calls to calculating waterfall distributions and delivering investor capital statements and fund financial statements.

When done right, it can build investor confidence, reduce operational friction, and allow fund managers to focus on what they do best: creating value.

When fund administration falls short, the consequences can be significant — ranging from compliance risks and damaged investor relationships to reputational harm.

A fund administration platform built to help avoid pitfalls

1. One-size-fits-all doesn’t fit anyone

Many administrators rely on templated strategies that ignore the distinct structure of each fund. Work with your financial advisors to dig deep into your limited partnership agreements, operating agreements, private placement memorandums, subscription documents, and internal policies — and let them act as a bridge between legal counsel and fund leadership. Using a tailored approach helps detect drafting errors early and keeps your fund operating in compliance with its governing documents.

2. Weak internal controls create risk

Treasury services, investor reporting, capital calls — these aren’t tasks that can afford shortcuts. Operating under a SOC 1 Type II-certified control environment can help give you and your investors peace of mind that critical details are being handled with rigor and accountability.

3. Misaligned pricing models lead to burnout and mistakes

If your fund administrator is underpricing their work, they are likely under-investing in their people and technology — and that shows in their service. At CLA, we follow a value-based pricing model rooted in the CLA Promise: to know you and help you. Our pricing reflects the real complexity of each engagement, allowing us to attract top talent, reduce turnover, and deliver consistent quality.

4. Siloed teams break communication

When treasury, fund accounting, and investor relations don’t talk to each other, mistakes happen. Engaging a dedicated service team to handle all aspects of your fund facilitates seamless communication, stronger collaboration, and faster response times from capital call to distribution.

How CLA can help

From custom onboarding solutions to advanced investor reporting, CLA provides more than administration, we provide confidence. Let’s talk about how we can help your real estate and private equity funds operate smarter, scale faster, and serve investors better.