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As asset and wealth management (AWM) firms expand into new markets and grow their investor base, tax is becoming a strategic partner to the business. Tax can help manage risk and drive growth—but to realize that potential, your tax team needs the capacity and flexibility to deliver meaningful insights. Yet, as your investor bases expand and customized tax structures become prevalent, workloads grow from reporting and structuring to investor support and controversy. Add shifting regulations and rapid tech changes to the mix and your team quickly becomes stretched thin.
A teaming model that evolves with your tax function
To get ahead of these issues, many firms are leveraging managed services teams that work closely with internal tax functions. This collaboration can help expand operations, fill resourcing gaps and boost efficiency through AI — freeing your tax team to focus on where they can make the biggest impact.
Realizing this potential often means rethinking how tax delivers value and reshaping the operating model to match. Managed services can help make the tax function more adaptable— able to quickly respond to changing demands and growing complexity.
Driving tax forward without compromising value
Investors want lower fees and AWM firms are committed to controlling costs. Meanwhile, the tax function is expected to achieve more with the same — or even reduced — budget, while aligning closely with the broader business to address evolving customer needs.
Costs may also shape how you invest in tax technology.
More than 70% of asset and wealth managers believe infrastructure and technology will shape the future of the industry over the next two to three years.
Although many AWM tax teams already use automation, machine learning and AI, staying current with the latest tools isn’t easy. If your resources are already stretched thin, you may lack the capacity to manage the adoption of new solutions. So, as you explore your options, consider how these factors, together with your business priorities, should shape your operating model and tech adoption strategy.
The expanding strategic role of tax
Your tax team needs to be ready to power your business strategy. For many, the traditional focus on compliance is becoming an increasingly heavy lift. After all, they’re already:
Preparing work papers
Managing quarterly tax estimates
Delivering K-1s to investors
Filing local, state, federal and international tax returns
Handling distribution withholdings and compliance
Reporting for general partners
Maintaining partner and investor demographics and other data
Generating calculations for portfolio companies
Managing tax audits and controversy support
The list goes on.
In tax structuring, teams are supporting deal requests, facilitating new product launches, conducting due diligence, preparing deal documentation and memos, and performing comprehensive scenario planning. You’re managing investor needs, keeping legal structures current, navigating audits, supporting fundraising and staying ahead of global reporting requirements.
Each task is critical on its own. Together, they make tax a central driver of growth and investor trust — but your team may not have the infrastructure to provide data-driven insights in a cost-effective manner. To evolve, forward-looking tax functions are turning to tax managed services as a transformation catalyst. Here’s how.
Broad and deep know-how is a must-have
Your tax team may understand the business and its strategic goals at a granular level but, at the same time, tax managed services may bring a broader industry perspective and help you connect the dots across functions, manage risk and grow with agility and intention.
Your team may have strong technical skills in some areas, but you may need support across jurisdictions and specialized topics. This is especially true as your firm expands its investment strategies, product types and locations while the complexity of global regulations keeps rising. Tax technical, industry and digital knowledge are essential to build robust processes and scalable tools, and managed services can provide fast access to technical, operational and digital talent on a global scale.
Leveraging managed services solutions means more than added capacity. It can help you stay ahead of regulatory changes and deliver value to investors in a wider range of markets.
Realigning resources to work faster, smarter
Manual, repetitive tasks such as reconciliations and data entry can drain your team’s motivation and limit their ability to focus on strategic initiatives. At the same time, hiring for every specialized skill isn’t realistic. Managed services can help fill these gaps, allowing you to scale resources as your business needs evolve, especially as rethinking your talent allocation is often closely tied to your tax function’s current digital capabilities.
Many AWM tax functions are embracing AI and automation but may not have access to the latest digital tools or struggle to extract maximum value from existing technology. Data silos and outdated processes create roadblocks.
AI technologies are rapidly reshaping how tax gets done, enabling tax departments and firms to apply agentic AI frameworks that support planning and compliance more proactively and efficiently. By integrating across multiple systems, these tools help streamline data acquisition and reporting, reduce manual effort and deliver greater accuracy and insight.
Managed services can offer an immediate boost in digital capabilities by providing access to proven solutions through connected processes, workflows and tools—underpinned by strong governance. This approach can deliver advanced technology and capabilities without the time and expense of building it internally.
Whether big or small — there’s potential for a win-win
Tax is fundamental to asset managers and can unlock value by identifying areas for cash savings and evaluating tax-efficient alternatives for investments. As your firm revisits its operating model, tax should play a pivotal role in that conversation.
Tax Managed Services
Elevating the tax operating model to fuel smarter decisions and simplify complexity
Tax Managed Services for Financial Services
Reinventing the tax operating model in Financial Services with managed services
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