Sun, Mar 1, 2015
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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie