Hug Your COO
The role of the COO is becoming more and more paramount in an increasingly volatile, competitive, and regulated market landscape.
Historically, money management activities, followed by marketing and raising capital, have been the most important activities for a fund. However, now, the role of the fund’s operating platform, and hence that of the COO, is equally important for investors, regulators, and the funds...
Over the last five years, three key factors have played a role in this change:
There has been a tremendous amount of regulatory and investor scrutiny that, if not handled correctly, would de-focus the principals from the important job of making investment decisions. The ability to manage this while fees decline is often the defining factor of a fund’s success
Issues like compliance, cyber security, and reporting/data management are becoming critical to funds’ ability to operate on a day-to-day basis and grow. There is a heightened need to manage these areas well in order to thrive
Due to greater investor transparency, there is an increased need to manage expectations, costs, and counterparties in times of turmoil. Firms with COOs who can manage this well often have a competitive advantage
This shift in the importance of the COO is further augmented with new roles and responsibilities that expand beyond the historic scope of the role. The COO has traditionally focused primarily on three key functions:
