Betting on admin


Citco tops the list of hedge fund administrators with $133 billion. But several competitors, particularly investment banks, are fighting hard to gain market share in the business by cross-selling their services

By Katrina Dean Allen

Citco remains the number one hedge fund administrator in the U.S. by some distance, but other administrators are fighting hard to gain market share. Among the hungriest new contenders are the investment banks, who were previously happy to leave the unglamorous back-office tasks like calculating funds’ net asset values and handling shareholder relations to a handful of independently run administrators while they focused on the then-lucrative business of prime brokerage.

Making money from prime brokerage has gotten tougher, however, and banks are fighting to make inroads into hedge fund administration at a time when