4 Benefits of Outsourcing Asset Management for European Lenders

Outsourcing asset management empowers banks and private credit lenders in Europe to grow without typical overhead commitments. SitusAMC’s white paper, “Empowering Growth in Europe: 4 Advantages of Outsourcing CRE Asset Management,” examines the key benefits of engaging a third-party provider for this service. They include: 

• increased flexibility and agility;  
• lower cost, faster decision-making, and improved processes;  
• expert market knowledge, superior insights, and objective reporting; 
• and industry best practices and up-to-date technology. 

“Outsourcing empowers firms to move with more efficiency and agility at a lower cost,” said Lisa Williams, Executive Managing Director and Head of Europe. “Our experienced asset management professionals give clients the freedom to focus on their customers as well as critical business development priorities.” 

Outsourcing gives lenders the power to align the size of internal teams with fluctuating loan portfolios and increase their focus on origination and business development. At the same time, outsourcing does not necessarily mean replacing internal teams. In asset management, SitusAMC will typically offer employment to the client’s employees under the Transfer of Undertakings (Protection of Employment) regulations (TUPE) so they maintain their jobs and salaries.  

With deep experience and a singular focus on asset management, third-party providers can better rationalise data, track portfolio performance, implement best practices, and offer state-of-the-art technology investment. 

The key is to seek an outsourcing partner that acts as an extension of the internal team and can adapt to meet client-specific requirements. The third-party firm should be able to demonstrate an understanding of stakeholder needs in the process, from fund and asset managers to accounting teams and servicing groups, to valuers, auditors, legal, reporting and analytics teams.   

“There is understandably some nervousness around outsourcing a process that historically has been done in house,” said Williams. "The third-party provider should be able to demonstrate they have the experience, ability to adapt and nimbleness in responding to different stakeholders needs.” 

Download our white paper, “Empowering Growth in Europe: 4 Advantages of Outsourcing CRE Asset Management,” here. For more information on outsourcing services in Europe, contact Lisa Williams at lisawilliams@situsamc.com or Tom Moreton at tommoreton@situsamc.com, or visit our website.