Top Strategies for Growth Amid Changing Capital Structures.

In the current era of elevated interest rates, regulatory flux, geopolitical uncertainty and evolving investor demands, fund managers in the private-markets must navigate increasingly complex capital-structures while driving growth.

According to the McKinsey & Company 2025 “Global Private Markets Report”, capital-raising is down (traditional commingled funds fell ~24 % YoY) while deal-deployment is shifting, underscoring the need for strategic agility. McKinsey & Company

For CFOs and COOs of private-equity, private-debt, real-assets and infrastructure funds, the dual challenge is: maintain operational efficiency and adapt the capital-structure and organisational model to support growth.

In this article we cover four interlinked strategic pillars:

• Securing senior-management support

• Technology as a catalyst for efficiency

• Maximising the value of service-providers

• Strengthening internal teams

Each section includes issues, actionable suggestions, and global references (US / UK / EU) where relevant.

Global Capital Structure Pressures & Required Responses.

1. Securing Senior Management Support.

Why it matters:

Strategic growth in funds with complex capital-structures (multiple layers of debt, hybrid instruments, co-investment vehicles, evergreen vs closed-end models) requires alignment at the top. Senior leadership must understand and support the trade-offs between operational efficiency, capital-structure flexibility and return-hurdles.

Key actions:

• Regular, transparent communication: run quarterly sessions with senior management/Board showing how capital-structure decisions (e.g., leverage, debt maturities, alternative funding) tie into growth plan and risk-profile.

• Benchmarking: show how peer funds are structuring their capital and operations, to build credibility and reduce resistance. For instance, in the UK the investment management industry survey notes that firms emphasise stable policy, international alignment and innovation—points senior management care about. The Investment Association

• Data-driven decision-making: build dashboards showing structural metrics (leverage ratios, liquidity buffers, alternative funding sources, cost of capital) so senior leadership can see clear trade-offs.

Global perspective:

• US: Fund managers are under pressure from limited partners (LPs) to justify multi-layer structures (co-investments, continuation funds) given liquidity and valuation risk.

• UK/EU: Regulatory divergence (e.g., AIFMD II in the EU vs the UK’s more competitive regime) means senior management must factor jurisdictional capital-structure implications into the discussion. Belasko

• For global funds: If raising capital in multiple jurisdictions, senior support is essential to back a strategy of diversified funding (see next section).

The 4 Strategic Pillars with KPIs & Example Initiatives.

Actionable takeaway:

Identify three structural metrics to monitor (e.g., average debt maturity, alternative funding share % of total, internal cost-of-capital) and schedule a leadership briefing every quarter. Include benchmarking vs top-quartile funds.

2. Technology as a Catalyst for Efficiency.

Why it matters:

Operational efficiency is no longer a “nice-to-have”; it is increasingly a strategic differentiator. In the private-markets world, servicing complex capital-structures (e.g., layered debt, derivatives hedges, cross-jurisdiction vehicles) demands technology, data-analytics and automation. The State Street Corporation 2024 Private-Markets Outlook highlights how enhanced data and reporting, and diversified fund structures, boost liquidity and create competitive advantage. State Street

Key actions:

• Advanced analytics & AI: Invest in predictive modeling (e.g., scenario planning under interest-rate shocks, capital-structure stress tests) to identify vulnerabilities before they bite.

• Automation tools: Automate reconciliation, invoicing, fund-reporting, SPV waterfall modelling, the “heavy-lift” admin tasks that distract from strategic work.

• Digital platforms & cloud: Use scalable cloud-solutions for real-time collaboration across geographies (especially relevant for global funds with US/UK/EU operations).

• Metrics: Track process-efficiency improvement (e.g., reduction in time to close books, decrease in manual errors) and link them to cost-savings or redeployed head-count.

  
  

Global perspective:

• UK/Europe: With regulatory and disclosure demands increasing (e.g., valuation practices oversight by the Financial Conduct Authority in the UK) technology becomes critical to meet governance and transparency obligations. privatecapitalsolutions.com+1

• US: Given the scale of private-markets in North America (largest share of global fundraising) and competition for efficiency, tech-led differentiation matters.

• Emerging markets/global: For funds operating in Asia-Pacific or MENA, the ability to deploy a standardised tech stack enables cross-jurisdiction operational scale.

  
  

Actionable takeaway:

Select one “low-hanging” process in your back-office (e.g., SPV cash-flow modelling or investor-reporting) and automate 50 % of it within three quarters. Set a KPI: reduce time per report from X to Y and redirect saved hours to strategic work (capital-structure scenario planning).

3. Maximising the Value of Service Providers.

Why it matters:

In complex capital-structures, outsourcing parts of operations (administration, legal, audit, fund accounting, SPV servicing) is common. But to drive growth and efficiency, fund managers must treat their service-providers as strategic partners, not just vendors.

Key actions:

• Select based on alignment: Evaluate whether the provider has experience across the jurisdictions and instruments you use (e.g., hybrid debt-equity, derivatives, cross-border funds). For example, US managers increasingly use Jersey and Guernsey structures for European assets, due to familiarity and regulatory efficiency. walkersglobal.com

• Transparent fee-structures: Ensure contracts clearly specify scope, performance KPIs, escalation mechanics. Hidden costs or misalignment reduce returns and introduce risk.

• Regular performance reviews: Set quarterly or semi-annual reviews of provider performance against KPIs (accuracy of reports, timeliness, cost control, technology adoption).

• Benchmark provider cost and service: Compare your service-provider metrics (cost per investor, time to close, error-rate) with peer-fund averages.

  
  

Global perspective:

• Multi-jurisdictional funds: If your fund uses vehicles in the US (Delaware), Cayman, Jersey/Guernsey and EU domiciles, you need a service-provider network with cross-border expertise.

• UK/Europe: Regulatory changes (AIFMD II, ESG disclosures) mean providers that are agile and tech-enabled will provide competitive advantage.

• Emerging markets: Service-providers that combine local jurisdiction capability with global standards help mitigate operational/structural risk.

Internal vs External Operating Levers.

Actionable takeaway:

Map your top 3 service-providers and conduct a “health-check” exercise: define for each provider three KPIs (e.g., cost per LP statement, error rate, system uptime) and establish a quarterly review meeting with senior sponsorship from your COO/CFO.

4. Strengthening Internal Teams.

Why it matters:

Even the best technology, service-providers and capital-structure optimisation will falter without an internal team capable of executing and adapting. In the private-markets environment, teams must operate at the intersection of finance, operations, data-analytics and strategic growth.

Key actions:

• Recruit top talent: Hire professionals with not only fund-accounting or operations experience, but also familiarity with alternative-capital structures, cross-jurisdiction vehicles, and technology platforms.

• Invest in training: Provide ongoing development in areas such as: AI/data-analytics for finance; derivatives and hedging; cross-border fund-structure design; regulatory changes (US/UK/EU).

• Foster an innovation culture: Encourage experimentation (pilot new tech, process-improvement sprints, lean/Kaizen initiatives), reward suggestions that lead to measurable improvement.

• Cross-functional teams: Break siloes, create teams with stakeholders from strategy, operations, finance, compliance to tackle projects (e.g., capital-structure refresh, new fund vehicles).

• Set retention metrics: Since talent turnover in alternative-asset operations can be high, set KPIs for employee satisfaction, internal promotion rate, average tenure.

Global perspective:

• UK/EU: With regulatory and structural change (see UK investment-management survey) the ability to attract and retain high-quality talent is a differentiator. The Investment Association

• US: Given scale and competition in private-markets, building a team that can move quickly on complex capital-structures is a competitive edge.

• Emerging markets: If your fund operates in Asia-Pacific/MENA and sources capital globally, local teams plus global-standard training are required to avoid operational drag.

  
  

Top Challenges vs Tactical Actions.

Actionable takeaway:

Identify 3 “capability gaps” in your current team (e.g., derivatives/hedging, cross-jurisdiction fund-structures, data-analytics). For each gap create a training or hiring plan with measurable milestones (e.g., by Q3 train 80 % of team on derivatives modelling; hire one senior structuring person by Q4).

Roadmap for Implementation.

1) Identify Priorities

• Based on your organisation’s context (size, geography, fund-type, investor base), select the top 3–4 initiatives among the above four pillars that will deliver the most value in the next 12–18 months.

• For example: If your biggest issue is cost-pressure and execution delays, focus on Technology + Service-Provider optimisation. If your structural growth is limited by capital-raising constraints, focus on Senior Management Alignment + Internal Team capability.

  
  

2) Create a Timeline

• Break each initiative into quarterly milestones.

  • Q1: Baseline diagnostics (e.g., current process-times, cost metrics, talent-capability map)

  • Q2: Pilot phase (automate one process; onboard new service-provider KPIs; begin leadership briefings)

  • Q3: Roll-out (extend tech automation; implement full provider review cycle; conduct team training)

  • Q4: Review & scale (track KPIs, refine, scale successful pilots across the organisation)

  
  

3) Set KPIs

• Define measurable metrics for each pillar. Example metrics:

  • Return on investment (ROI) of tech/automation (cost savings + redeployment hours)

  • Employee satisfaction / retention rate

  • Service-provider cost per investor + error-rate

  • Percentage of funding sourced via non-bank or alternative capital channels

  • Time to produce investor-reporting or close books

  
  

4) Measure quarterly, adjust as needed.

• Governance & Accountability

• Assign a senior sponsor (CFO or COO) for each initiative.

• Create a monthly dashboard for senior leadership with progress vs milestones and highlight risks/roadblocks.

• Tie alignment into senior management reviews (see Section 1) so that structural change becomes part of the core business agenda.

What drives the greatest value fastest?

Conclusion.

In today’s private-markets environment, characterised by shifting capital-structures, regulatory complexity, investor demand for transparency, and operational cost pressures, fund managers who succeed will be those who combine structural discipline with operational agility.

By securing senior leadership alignment, leveraging technology, maximising service-provider value and building a next-generation internal team, CFOs and COOs can drive growth and stability.

The roadmap above offers a structured way to turn strategy into execution: pick your priorities, set a clear timeline, define KPIs and hold yourself accountable.

For global fund managers operating in the US, UK, EU and beyond, this is not just “nice to do”, it is a competitive imperative.