China’s private capital funds must invest to meet investors’ increasing demands for transparency, Intertrust Group says.

Intertrust Group, a world leader in providing specialised administration services to clients in over 30 jurisdictions, estimates that around USD5.5 billion will need to be spent by the world’s private capital funds industry to meet these increasing demands over the next five years.

James Donnan, Regional MD, Asia Pacific at Intertrust Group, says: “For LPs in China, ‘performance’ is more than just returns. They want updates on KPIs such as cash or debt levels, daily sales or rent arrears and SLAs, all of which show how a business is being run in a complex market.”

In China, around one in four (24 per cent) CFOs say they will respond to the increased demands by investing in technology, 23 per cent say they will increase the size of their in-house finance teams, 22 per cent will outsource more functionality, 18 per cent will invest in distributed ledger functionality and 11 per cent will retain the existing balance between in-house and outsourcing.

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