Sun, Nov 29, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Viteos makes the case for outsourced shadow accounting at hedge funds

Wednesday, January 29, 2014

Bailey McCann, Opalesque New York:

Viteos, a global fund administrator and outsourced middle office service provider has released a new white paper detailing the business case to hedge funds for outsourcing shadow accounting functions. Shadow accounting in one form or another is part and parcel of hedge fund operations. According to Viteos, moving that function to an outsourced provider can help mid-sized funds grow assets and realize greater cost efficiencies.

Not only are strategies more complex -- paper authors note -- so are compliance requirements and scalability demands. In-house shadow accounting operations run the risk of being behind the curve on new regulations, or in learning new asset classes. Unlike in-house teams which must respond to a variety of mandates, outsourced shadow accountants can focus on reconciliations, learning new systems, and providing that expertise back to clients.

Authors say that adding this layer of infrastructure to a fund can also aid in attracting institutional size investors that look out for more independent operations. Service providers in the area are also able to provide many of the in-house customizations hedge funds use to evaluate their investment opportunities. As with any professional relationship, in order for outsourced shadow accounting to be successful, firms will have to go through a due diligence process with potential providers and assure aligned interests.

The full paper is available ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November