|
|
According to New York-based research and consulting firm Carbon360, alternative fund administrators have seen a rise in assets under management (AuA) of 7.4% in Q2-2010, most of which coming from single manager hedge funds (almost 20% up, to a total of $2.98tln) and fund of funds (3.2% to $1.02tln). However, private equity assets fell 16.6% to $846.9bn. 9,594 hedge funds were registered in Cayman’s jurisdiction at the time, an increase of 4.4% over the previous year.
More than 90% of new investor allocations went to the multi-billion dollar funds club in 2010; and several of those funds caved in to mounting investor pressure and contracted with third party administrators, says Carbon360. Hence the increase in AuA.
Those large funds stuck to their own size: they contracted with the larger, more established administrators to gain the benefit of brand recognition – especially Citco, State Street, Prime Fund Services and Citigroup. “However, most are utilizing the third party administrators as shadow platforms and opting for month-end services rather than daily services as they retain and integrate proprietary platforms,” says Carbon360.
Administrators also benefited from capital bases increase (due primarily to strong performance and increased allocations from existing clients), redemptions ease, and fewer funds close. And so many increased headcount or expanded through acquisitions and mergers.
And assets are expected to rise even more. In a Carbon360 surv...................... To view our full article Click here
|
|
RSS
