Bridger PenningtonFund Launch & Investment Expert

The Crazy History of Third Party Admins🤯 #shorts

30 Jun 2022 · 1 min

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This content was created by Bridger Pennington. This content was uploaded by Bridger Pennington. This is a YouTube short titled "The Crazy History of Third Party Admins🤯 #shorts" (uploaded 2022-06-30). It is a brief spoken monologue by a single speaker describing the historical shift in the use of third-party administrators for investment funds after the Bernie Madoff scandal — noting adoption moving from around 10% to over 90% as investors demanded independent verification to prevent fraud and restore trust.

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The history of third-party admins is very interesting. So before Bernie Madoff, I believe it was around 10% of all funds used a third-party admin, which is a very pretty small amount, right? Most people just trusted that they were running the books right. After Bernie Madoff, over 90% of funds use third-party admins. It was this major shift between investor and firm relations and trust. And they said, you know what, we trust you guys, but so did about $60 billion with Bernie Madoff. We want to verify what's going on. And so there's this huge transition and emergence of third-party admins on Wall Street with investment funds. It's a really great thing to have to, again, make sure you're not lying.