A timely solution to today’s pressures
Managers today face an expanding set of challenges: from delivering better investor outcomes to maintaining resilience across operations. In many cases, internal infrastructure is outdated, overburdened, or too costly to upgrade. Outsourcing non-core activities through a lift-out presents a compelling alternative.
“A lift-out allows managers to maintain execution quality while shifting costs to the fund,” said Elaine Chim, Global Head of Closed Products. “This can be particularly valuable during transitions between fundraising cycles.”
The appeal of this model is multifaceted. Many firms are attracted by access to modern technology platforms, which was cited by 70% of respondents as a key driver. Others value stronger regulatory alignment, enhanced talent retention, and better support from service partners.
By moving non-core but business-critical operations to a trusted provider, managers can focus on investor engagement, capital raising, and deal execution—without sacrificing control or continuity.
Getting it right from the start
Lift-outs are transformational by nature. Their success depends on careful planning across three key dimensions: people, technology, and process. Each must be assessed clearly and objectively, guided by a shared understanding of what the organisation hopes to achieve.
The first step is to define the desired outcomes. Is the goal to reduce operational cost, scale efficiently, access new tools, or improve governance? Without clarity, it's difficult to define scope or prioritise effectively.
Scope matters. While it may seem logical to limit scope to reduce risk, greater value can be unlocked by including broader functions. That said, it’s important to distinguish between what’s truly core to the business and what is simply familiar or longstanding.
Staff, technology, and operations: key considerations
People:
Define what constitutes a core competency versus a business-critical function. Assess whether roles can be bifurcated—retaining strategic oversight in-house while outsourcing tactical or support-level tasks. Consider whether partially dedicated roles could also be transitioned, improving budget discipline and service levels.
Technology:
Use the lift-out as an opportunity to challenge legacy systems. Why are internally developed platforms still in use? Have external solutions been properly evaluated? And are existing systems underperforming due to budget constraints? A strong partner will bring access to best-in-class platforms that support transformation.
Operations:
Identify where manual processes exist, often due to staffing or system limitations. Understand where reliance on third-party providers may be preventing optimisation. Tightening SLAs, KPIs, and budget controls as part of a lift-out can significantly enhance operational performance.
Mapping the future state
No lift-out should begin without a clearly defined target operating model. This includes mapping the current structure, understanding future goals, and working with a partner that can help design and deliver a transition plan aligned to those ambitions.
When selecting the right provider, consider the following:
- Service-first mentality:
Lift-outs are not about technology alone - they are about outcomes. Ensure your partner is a service provider first, with platforms that support the delivery rather than drive it. Firms that lead with proprietary tools may be less adaptable and more expensive to work with.
- Breadth of capability:
A key advantage of lift-outs is the ability to consolidate services. A partner should have the scope and scale to support your evolving strategy, across geographies and functions. Managing multiple providers defeats the very purpose of outsourcing.
- Proven transformation expertise:
Transitioning to a new operating model demands more than steady-state experience. Look for a provider with strong programme management credentials - teams that can move, reconfigure, and leverage operations without disrupting delivery. The best lift-out providers have a record of retaining staff, migrating systems, and modernising processes with minimal interruption.
How we support managers
We have successfully guided numerous firms through lift-out programmes—helping them redefine their operating models, reduce cost, and unlock growth. With our integrated platform, global reach, and dedicated transformation teams, we are well-placed to deliver every stage of the journey—from initial scoping through to long-term delivery.
We help managers transition operational costs to the fund, improve investor servicing, and access the latest regulatory and technology frameworks. Where appropriate, we also retain lifted-out staff to maintain continuity and safeguard institutional knowledge.
Ready for what comes next
As demands on managers continue to intensify, lift-outs offer a practical and strategic solution. By partnering with a provider that can handle today’s complexity while enabling tomorrow’s growth, firms can refocus on what matters most - delivering value to investors.
Now is the time to assess your operations: what’s truly core, and what could be better managed elsewhere?
Discover how lift-outs are reshaping private markets with our latest research report
In partnership with Global Custodian, our latest research report explores the growing retail influence and the strategic role of lift-outs.
Download Leading the shift: transforming private markets in a retail-driven landscape for global insights and forward-looking trends.
Download the full report here.
