Challenging time for administrators in a changing hedge fund landscape

Thu May 24, 2012



Administrators are facing widespread challenges and pressures at a time of slow growth in the hedge fund industry and increasing demands on administration providers from regulators, managers and investors


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...

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