Wed, Aug 16, 2017
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Other Voices: Crisis risk offset; about time?[more]

    This article was authored by Russell Barlow, global head of hedge fund solutions at London-based Aberdeen Asset Management. Like the ubiquitous force of gravity, when financial markets rise they must fall. The quest

  3. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  4. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  5. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos