Administration Industry Analysis

The boom in independent administration

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At least $587 billion in U.S. hedge fund assets now use independent administrators, up from $438 billion last year. Citco continues to be the top administrator, with $147 billion, according to the AR database.

By Katrina Dean Allen

Hedge funds aren't required to use an independent administrator in the United States. But over the past year such prestigious funds as Avenue Capital Group, D.E. Shaw, Maverick Capital, Millennium Management, Och-Ziff Capital Management Group, SAC Capital Advisors, Soros Fund Management and Viking Global Investors have had to outsource that function in order to keep investor capital from fleeing—and to raise additional money as well.

AR's annual administrator ranking shows that at least $587 billion in U.S. hedge fund assets now use independent administrators, up from $438 billion last year, based on nearly 2,000 funds that