The ASEAN region has demonstrated itself as a major area for investment and potential growth. However, much of this growth is still on the horizon and yet to be materialised. For the prospects of the ASEAN region to reach their true potential, the current environment requires cost efficiency, scalability and talent. These are critical factors to creating a supportive ecosystem.
Edge Technology Group, a privately-owned, fully-managed IT service provider for financial firms worldwide, has launched CloudSuite, a multi-cloud platform, purpose-built for the alternative investment community.
Starting up a fund is a battle, regardless of which jurisdiction the manager chooses. For those with a trading background embarking on their inaugural launch, one location that is perfectly predisposed yet sometimes overlooked is the Netherlands; a mere one hour from London City airport.
Fidelity Clearing & Custody Solutions, the division of Fidelity Investments that provides clearing and custody to broker-dealer firms, registered investment advisors (RIAs), family offices, retirement recordkeepers and banks, today released the latest report in its Fidelity Wealth Management M&A Series; ‘Insights from Independent Broker-Dealers’ (IBDs).
When setting up as a new hedge fund manager, one of the most important relationships to establish is that of the prime broker. With banks facing regulatory pressures in the form of Basel 3, many are re-appraising their client book to ensure that they are getting a suitable return on investment for the balance sheet they provide. Consequently, the first point for start-ups to focus on is to articulate what they will be doing with the fund they are planning to launch.
There are a multitude of costs that a start-up alternative fund manager faces today, especially with respect to those looking to establish a hedge fund under AIFMD. From regulatory costs and waiting to receive FCA authorisation, to office and IT and staffing costs, the amount of burn capital that managers initially account for can rapidly disappear down the drain.
Choosing the best prime broker to support the strategy is vital, but will depend on the manager. A portfolio manager spinning out of a hedge fund with an established track record and experience in running a pot of capital, will likely want to appoint a tier one prime broker: the likes of Goldman Sachs, Morgan Stanley; especially if they are launching with significant AUM. They may, however, look to others as an alternate, or second, prime to mitigate risk and to provide certain outsourced services.