Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund industry spends on average 7% of total operating costs on compliance

Friday, October 18, 2013

Benedicte Gravrand, Opalesque Geneva:

A new survey shows the hedge fund industry is taking its compliance obligations seriously. However, the sheer capital commitment it entails, even if it makes the financial world a safer place, can be a real burden for many managers.

According to The Cost of Compliance, a new report produced by the Alternative Investment Management Association (AIMA), the Managed Funds Association (MFA) and KPMG International, the average spent on compliance is currently at least $700,000 for small fund managers, $6 million for medium-size fund managers and $14 million for large fund managers.

The survey, which also includes interviews, was conducted between May and August 2013, among 200 hedge fund managers representing more than $190 billion in AuM.

Those managers, it was found, have already spent more than $3 billion so far on compliance costs, that is, anywhere between 5% and 10% of their operating costs on compliance technology, headcount and strategy.

Hard on smaller firms However, this is not easy on smaller firms, and on those trying to launch. As a percentage of their assets and relative to operating costs, they seem to be spending more money compared to their larger peers. "More than a third of hedge fund managers polled with less th......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1