Opalesque Industry Update - AlphaMetrix today announced the acquisition of Spectrum Global Fund Administration, creating the world's largest independent full-service hedge fund platform, with approximately $20 billion in client assets and more than 100 managers. Terms of the acquisition were not disclosed.|
With the acquisition, AlphaMetrix also introduced the world’s first multi-administrator hedge fund platform, which allows investors to choose from a pre-approved list of administrators. Among the administrator options is AlphaMetrix360, formed by the acquisition of Spectrum and both firms’ proprietary technologies. The integrated offering will lower platform costs to investors, providing a consolidated base cost for both platform and administration (including daily NAV calculation) of 20 basis points combined.
“AlphaMetrix’s goal is nothing short of revolutionizing hedge fund investing,” said Aleks Kins, CEO. “We constantly strive to give investors the tools they need to maximize returns and minimize risk, with entirely new services and lower costs for improved governance.”
AlphaMetrix made this move to:
1) Strengthen its model of manager governance, which relies on position-level transparency, cash flow controls stemming from a network of multiple unrelated service providers, and near real-time technology;
2) Further empower investors by providing efficient and transparent access to even more top-tier managers while delivering enhanced near real-time reporting and portfolio tools;
3) Reduce service provider costs for investors and managers by offering base platform and administration services, including daily NAV calculation, for just 20 basis points; and
4) Provide managers with access to the AlphaMetrix Investor Network of over 12,000 institutional and HNW investors.
AlphaMetrix is also providing institutional and high net worth investors with more hedge fund investment services via the AlphaMetrix Hedge Fund Platform. AlphaMetrix, which historically has serviced Separate Manage Accounts (SMAs) for large investors and Pooled Managed Accounts (PMAs), will now support a third option: Governed Hedge Funds (GHFs). A GHF leverages AlphaMetrix’s multi-administrator model and proprietary technology to provide its investors with greater governance and near real-time transparency.
“In order to build what amounts to the first true cost-effective governance platform for hedge funds, AlphaMetrix realized that integration with Spectrum Global Fund Administration was an ideal fit,” said David Young, COO of AlphaMetrix and former president of Spectrum. “In short, AlphaMetrix has spent years developing proprietary technology for front and middle office operations, with a focus on near real-time investor reporting, risk management and portfolio tools, while Spectrum has spent the last 12 years building its own proprietary back-office general ledger and reporting technology.”
Combined, the technologies offer the first available straight-through-processing capabilities from trade to portfolio management, which means AlphaMetrix can provide investors with a fully loaded daily NAV and all of the services of a Platform (transparency, risk management, due diligence, research and portfolio tools) for the efficient base cost of 20bps.