Fri, Dec 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Gravitas claims alternative investment industry on threshold of a new era

Wednesday, December 12, 2012
Opalesque Industry Update - Rethinking the cloud, a heightened call for operational freedom and an arms race to scale will be industry-defining issues for the alternative asset management industry in 2013, according to Gravitas, a co-sourcing platform providing cloud technology, co-sourcing and risk support to the alternative investment industry.

“With the lessons learned from a string of major frauds, the ripple effects of an epic financial crisis and regulatory upheaval, the alternative investment industry finds itself on the threshold of a new era marked by the emergence of exciting new business models,” said Gravitas CEO Jayesh Punater. “More than ever, the hedge fund and private equity industries are embracing innovation across the value chain in order to build sustainable, increasingly global businesses. For next-generation service providers in 2013, that means delivering a robust platform of integrative services, comprising people, processes and technology that enables clients to maximize operational efficiency, at minimal upfront costs, towards establishing a world-class infrastructure.”

“Over the last several years, we’ve seen the steadily growing embrace of alternatives by institutional investors coupled with continuing diversification among hedge funds and private equity firms into each other’s areas of business as well as into areas such as real estate, insurance and new allocation strategies. As a result, the comfort zone around outsourcing key parts of a hedge fund’s operation has grown substantially,” explains Punater. As a result, he sees several key issues topping the industry’s agenda in 2013, including:

An arms race to scale. “The continuous growth of competition has contributed more than any other factor to an arms race for scale,” Punater says. “Hedge funds have come to realize that the platforms they employ in this new era must afford institutional scale in order for them to successfully compete and grow. And they must accomplish this while confronting a daunting range of demands – from reporting, transparency, risk controls and custodial and administrative processes to a heightened demand for product diversification.”

Co-sourced solutions. Achieving a sustainable competitive advantage will require hedge funds and next-generation service providers to collaborate in new, highly integrative ways in 2013. “Vendors in 2013 must continually redefine service. The way to do this is to put people, processes and technology to work in innovative ways that constitute a new standard of partnership,” says Punater.

Operational Freedom. “Every morning, clients need to ask themselves: ‘What am I doing today to improve operational efficiency?’ By reducing operating expenses 15-20 basis points, the top 100 alternative asset management firms alone could realize $30 billion to $45 billion in savings. One way to greatly accelerate operational efficiency and scale is by leveraging the private cloud, which is rapidly evolving from a compelling technology offering to an entirely new way of thinking about your business,” says Punater.

Risk as a Service (RaaS). “Risk is the lifeblood of growth,” says Punater. “But the new era of harsh economic and competitive forces, complex regulatory demands and sheer speed means firms must forge new perspectives on enterprise risk that support strategic decisions. This is particularly the case for emerging and midsize firms, which have a limited window to make their move.”

“The incredibly dynamic nature of the alternative asset management industry points to a golden era for this business,” says Punater. “As hedge funds mature and become increasingly mainstream, they will attract capital much more rapidly. But to stay ahead, we must continue to innovate and break through the barriers. The good news is that we have the resources and talent to do just that.” Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und