But these institutional investors are forcing changes in the services offered
Ask any hedge fund administrator what single trend has changed the business over the last couple of years, and one word comes up time and again: institutionalization.
The word most often refers to the stampede of big institutions, like pensions and endowments, clamoring to give money to hedge funds. But as investors get more institutional, so do the counterparties who serve them, including administrators.
One obvious sign that administrators are changing their stripes to please this more demanding class of investors is the fact that many are ending the practice of serving on the boards of directors of hedge funds. Alan Tooker, for instance, is set to leave DPM in Europe to form a separate firm in the Caymans that will act as an independent director for hedge funds.
Tooker's move appears to be part of a pattern, with...