State Street Corporation has announced that assets under administration serviced by its private equity fund team grew by 60 per cent in 2008.
State Street Corporation has announced that assets under administration serviced by its private equity fund team grew by 60 per cent in 2008.
State Street now provides full-service fund administration services to more than 400 primary funds and more than USD138bn in assets.
‘Even with the slowdown in the overall financial markets, private equity fund managers are still looking to third party administrators to provide greater efficiencies, more consistent reporting and cost savings for their funds,’ says Jack Klinck, executive vice president and global head of State Street’s Alternative Investment Solutions team. ‘Customers also recognise that experienced third party providers can stay ahead of changing requirements throughout the fund lifecycle, understand the nuances of each fund’s structure, and adapt accordingly.’
In conjunction with the Global Absolute Return Congress conference held in late 2008, State Street conducted a survey of institutional investors soliciting their views on alternative investing. The survey respondents represent institutions that collectively manage approximately USD1trn in total assets and include corporate, pension plans, endowments and foundations and insurance companies.
The survey concluded that institutional investors continue to maintain a favourable view of private equity funds. Twenty per cent of institutional investors responding to the study allocated more than ten per cent of their portfolios to this asset class and another third allocated more than five per cent.
Over the next 12 months, half of these institutional investors (49 per cent) plan to increase their allocations to private equity funds.
‘One of the encouraging signs for alternative investments in uncertain financial markets is the increased interest in private equity funds by investors with a long-term investment horizon,’ adds Klinck.
