These are testing times for hedge fund administrators in
Europe, as they are for everyone in the alternative asset
management world - both in terms of the broad industry dynamics
and also in terms of individual business strategies.
Revenues are under pressure. Overall assets in the European
hedge fund industry have stalled at levels that are still well
below their pre-crisis peaks, at just under $430 billion at the
start of this year. The flow of new funds is still at a trickle
compared with the flood years of 2003-2007. And managers (whose
own profitability is, for the most part, nothing like it once
was) are increasingly eager to extract more for less from their
admin service providers.
Costs are rising. There are more and more operational,
compliance, legal and risk burdens for administrators to bear -
while increasing numbers of staff are required to carry out the
growing range of...