Thu, Nov 26, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

PwC: Hedge fund infrastructure critical to addressing regulatory and business requirements

Monday, June 20, 2011
Opalesque Industry Update – A new study by consulting firm PricewaterhouseCoopers reports that hedge fund infrastructure is crucial in addressing regulatory and business requirements, particularly in the light of the implementation of new rules, including the Dodd-Frank Act, the Alternative Investment Fund Managers Directive and the Foreign Account Tax Compliance Act.

In its paper entitled, ”Infrastructure: from cost to benefit – hedge funds 2.0”, PwC provides an insight into the correlation between the new regulatory regime and the financial crisis, and also takes a look into the necessary adjustments needed by individual hedge fund strategies to meet the challenges set by the new rules. Hedge funds can also take advantage and actually reap some benefits from the new regulations, the paper added

Mike Greenstein, global alternatives leader at PwC, commented, “Investors look for the ‘right’ kind of risk in their portfolios; they’re not looking to expose themselves to reputational or operational threats. Senior management wants to insulate their organizations from damage to credibility and brand so things that may not have been the focus of a firm’s infrastructure a few years ago have become critical in the face of the double threat of investor activism and regulatory change.”

Other key factors that are putting more pressures on hedge funds to change their operations are the demand from investors for greater due diligence and transparency.

But more importantly, hedge funds are finding it necessary to adopt the best available technology as they now acknowledge the need to expand their talent as many of the traditional methods available in the past are no longer suitable.

Greenstein added: “The industry has always been resource constrained but we’re now seeing top performers with compliance, tax and valuation skills in ever greater demand. Those with credible risk, legal, finance and investor relations expertise are also highly sought after. In Europe, base salaries for experienced compliance staff have doubled in recent years as hedge funds compete for resources in a limited talent pool. Investing now and ring-fencing key talent will pay off.”
Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Download is available on the PwC site: Matthias Knab |   June 22, 2011 08:44:19 AM
Is the study available for download?   June 22, 2011 12:36:38 AM
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. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  4. 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

  5. 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