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This article was originally posted in The Alternative Investor. While deal making and historical returns remain the top performance metrics, leading managers are increasingly prioritizing operational excellence, and for good reason. Operational missteps can trigger a range of consequences including regulatory fines and damaged investor relationships. Operational precision will continue to influence Limited Partner (LP) allocations throughout the year, and General Partners (GP) should take heed of strategic drivers that may impact their approach. Growth of Complex Fund Structures Managers are increasingly turning to semi-liquid or evergreen funds to meet the evolving needs of LPs participating in private markets while looking to maintain periodic liquidity. Although these funds provide greater flexibility, semi-liquid structures inherently raise operational considerations and create new layers of complexity for managers. With evergreen funds, cash and liquidity management needs are heightened due to increased inflows and outflows with no fixed maturity date. Redemptions, NAVs and investment performance calculations become more complicated and matching liquidity between investors and investments becomes challenging when compounded by slow pay provisions or lock-in periods. Unsurprisingly, managers are turning to experienced providers to tackle these complexities. For example, our advanced fee calculation tool runs waterfall, carried interest modeling, and…