Day in the Life: Karen Egan, Independent Investment Fund Director and Consultant

Karen Egan is a Certified Investment Fund Director working as an Independent Non-Executive Director (INED) and Chair with a number of investment funds. She began her career in financial services as a trainee accountant with a hedge fund and gained experience with roles in Luxembourg and Australia before returning to Ireland for a leadership role with a private US fund administration firm. Karen began working as an INED in the funds sector in 2022, bringing deep industry knowledge and extensive governance experience.

We speak with Karen about her career journey, the skills required to be an effective INED, and the evolving nature of the role within a highly regulated environment.

Hi Karen, thank you for speaking with us. Can you tell us a little about your career journey in financial services?

I started out in financial services as a trainee accountant in the fund accounting department of a Japanese Bank working on a hedge fund. The IFSC was still a new and developing industry in Ireland and hedge funds were a niche part of the industry. At the time, I didn’t realise the significance of getting exposure to this type of fund and asset class so early in my career, but it has stood to me as the Alternatives asset class grew significantly. I moved to Luxembourg and then onto Australia working in the funds industry in both locations. When I returned to Ireland, I took on a leadership position in a private US fund administration firm which was ultimately sold to a large US bank. I gained invaluable experience working in a fast paced company in a number of different roles. My work involved running large operational teams, client relationships and business development across multiple global jurisdictions. I was also a member of the senior management team and board member of the Irish regulated entity.

You work as an Independent Non-Executive Director (INED) with a number of investment funds – what do you enjoy most about this work?

The funds industry in Ireland and internationally has been a great success story. The level of expertise, commitment and professionalism that I encounter is really impressive. I have a group of clients with diverse and interesting investment strategies whom I continue to learn from, but who also appreciate the expertise that I bring to the table. We all come together to play a certain role in the industry. Having moved on from working for a service provider, I now sit in different position at the table, but I still get to work with really impressive people.

What does a typical day look like in your role?

The typical day can vary depending on the week of the quarter. A lot of board meetings happen around the same time so there will be a few weeks of intense board pack review followed by attendance at board meetings and follow up after those meetings. As most funds still have a 12/31 year end, there is also a very busy period just before financial statements deadlines. Given the highly regulated nature of the funds industry, I also spend a lot of time keeping up to date with evolving regulations and legislation. Our industry does a great job of putting on events to update the community on the impact on these regulatory changes while also facilitating great networking opportunities. IOB offers an extensive number of courses which I’ve engaged with to achieve deeper expertise in certain areas.

What are the most important skills required as an INED?

An in-depth knowledge of the industry goes without saying but an INED also needs to be able to think strategically, challenge the information that is presented to them, understand and manage risk and make informed decisions. On a practical level, board packs can be voluminous so the ability to consume large amounts of information and identify key issues is also very important. There is a big difference between an executive role and acting as an INED and understanding that is crucial.

What advice would you give to someone aspiring to step in to an INED position?

Having board experience early on in my career has been invaluable to me as I transitioned into my INED role and I’d highly recommend this. I had been on the board of a regulated financial services regulator for 5 years before I made the move. Prior to joining the board, I had been involved in presenting to the board on various topics so I was very familiar with how boards function.

What technology or trends do you think will have the biggest impact on funds and asset management industry in the next 4-5 years?

One of the rewarding elements of working in the industry is the level of innovation that has taken place since I started out doing reconciliations with highlighter pens and printed broker statements. Undoubtedly AI is going to have a huge impact on all of our lives over the coming years and that will take innovation to the next level. It’s going to be interesting to see how quickly the industry can further utilise new technologies and incorporate AI into legacy applications in a cost-effective way.

What is the best advice you’ve ever received?

I don’t think I can point to one piece of advice but having a network of people who you trust and consult with is worth its weight in gold.

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