Cybersecurity and ESG top challenges for fund managers

Fund managers across the alternative asset class cite cybersecurity and ESG as top challenges during the fundraising due diligence process, according to a recent survey by Crestbridge.

The survey revealed that compliance and regulatory support are a concern for almost half (46.15%) of respondents.

Evolving global regulations and compliance standards pose a challenge for fund managers, particularly “smaller firms or those who have not yet scaled” without resources to dedicate to regulatory compliance, said Cheryl Bai, head of funds for Crestbridge.

The survey also revealed that sourcing and retaining talent remain the biggest internal challenges for managers to run their funds, with over a third expecting this to be an issue throughout 2023.

While the Great Resignation started in 2021, managers anticipate the issue to affect not just the asset classes but also the broader financial services industry and other industries, with no specific jurisdiction being spared.

The survey also found that managers are grappling with operational efficiency, managing data for both the business and investors and keeping up with technological innovation and regulation.

Regarding domiciles, Luxembourg (57.14%) was voted as the most attractive jurisdiction for managers in 2023, followed by Delaware (35.71%). 

Managers also showed an interest in the Channel of Islands, Cayman Islands, Singapore, Ireland, and the UK as domiciles for alternative funds.

The survey highlighted that fund managers face various challenges that require them to navigate a complex and ever-changing landscape to ensure success.

© 2023 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST