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The pace of consolidation within the hedge fund administration space shows no let-up, with MUFJ Investor Services, the asset servicing arm of Mitsubishi UFJ Financial Group, having just announced its latest acquisition; Rydex Fund Services, a 1940-Act fund administration business formerly owned by Guggenheim Investments.
One of the reasons fuelling this trend is that hedge fund managers and their end investors are looking for a flight to quality, as well as security (from a size and scale perspective).
"They want administrators with a diverse book that can support a wide range of funds and support them as they continue to
In order for the alternative funds industry to evolve one point that needs to be addressed is that the term 'Hedge Fund Administration' is too narrow. Firstly, one cannot avoid a trend towards convergence within alternatives that has steadily gained traction in recent years as hedge fund managers develop more private equity-like fund strategies, and vice-versa; this has resulted in the term 'hybrid fund' being bandied about.
Secondly, as traditional asset managers and asset allocators move beyond the concept of hedge funds as a distinct asset class and move towards portfolio strategies such as risk factor analysis, engineered beta, and synthetic
Conifer Financial Services is one of the world's leading independent fund administrators. It has more than 200 clients representing more than USD110 billion of combined assets under administration (AuA) and has a strong footprint in both the US and Asia (Singapore) following its successful merger with Vastardis Capital in 2014.
Speaking with Hedgeweek, Jack McDonald (pictured), President and CEO of Conifer Financial Services, says he is not surprised by the recent acquisition activity in the industry. In his view, fund administration is, in many regards, a scale game and consolidation will continue over the near term.
"While bigger isn't necessarily
There is plenty of scope for further consolidation in the hedge fund administration space, but only those with a clear strategic vision and a willingness to reinvest in their businesses will likely emerge as tomorrow’s winners.
Consolidation in the hedge fund administration space remains a prominent trend and as investment banks re-assess the profitability of non-core business divisions and small administrators sink or merge in response to market complexity, it is one that is unlikely to end anytime soon.
In the last few years Goldman Sachs has sold its fund administration business, BNP Paribas acquired Credit Suisse's fund administration division,
LendingCrowd, a UK alternative finance lender, has partnered with the Scottish Investment Bank (SIB), the investment arm of Scottish Enterprise, in an initiative that will see GBP2.75 million invested in Scottish SMEs across the LendingCrowd platform.
It is expected that the move will stimulate loans of up to GBP35 million for SMEs while leveraging significant private sector investment.
The agreement will allow SMEs to access loans of between GBP5,000 and GBP250,000 over terms ranging from six months to five years.
Applicants apply directly to LendingCrowd, which will then undertake the appropriate due diligence on each investment case and
Brighter World Energy, a socially conscious energy company launching in the UK, has completed a GBP500,000 seed capital round with the help of ClearlySo, a European impact investment bank.
Brighter World Energy plans to use the funding to ensure consumer power tackles the global energy crisis.
Brighter World Energy’s dual mission is to offer UK customers access to energy at competitive tariffs and high-quality online support, which will contribute directly to help build solar-powered micro-grids in Africa. For every 2,000 customers signed up with Brighter World Energy, a solar powered micro-grid is installed in Africa.
Brighter World Energy’s model
Perceptive Advisors, an investment management firm focused on the healthcare sector, has closed the Perceptive Credit Opportunities Fund, which provides private credit to healthcare companies.
The fund and related entities have USD323 million in investor commitments, exceeding the USD300 million target.
The fund's global investor base includes endowments, family offices and institutional investors.
It is focused on providing customised debt financing solutions to healthcare companies across all stages and subsectors, including biopharma, medical devices, diagnostics, life science research and healthcare information technology.
The fund partners with small and medium-sized companies to provide capital ranging from USD10 million
Nexxus Capital has completed an investment in Fondo de Transporte México (FTM), a platform of companies in the logistics, cargo, personnel and student transportation sectors.
The investment will be funded through Nexxus VI and Nexxus VI Trust.
With private equity fund Discovery Americas one of the major shareholders in the company, the investment is one of the first in Mexico to bring together several private equity funds.
FTM operates under several brands, including Egoba, MyM and Lipu, and has more than 4,800 transportation units in 29 Mexican states.
The transportation and logistics sector shows significant consolidation opportunities
JAMP Pharma, a generic pharmaceutical company, has signed a partnership agreement with Quebec development capital organisation Fonds de solidarité FTQ, which includes a major investment representing a minority stake of 31 per cent.
By increasing JAMP Pharma's financial capabilities, the investment by the Fonds de solidarité FTQ will make it possible to significantly increase new product development and, as a result, the company's ability to supply its customers.
JAMP Pharma also intends to accelerate its growth across Canada by focusing on the development of complex generic products, in addition to expanding into select international markets.
The announcement comes
An affiliate of private equity firm Sequoia Capital China is to make a RMB348 million (USD51.7 million) investment in Noah Holdings’ asset management business by acquiring equity interests Noah’s affiliate, Gopher Asset Management.
Gopher was founded in March 2010 and specialises in fund-of-funds management in the private equity, real estate, hedge funds, credit products and family office businesses.
As of 30 June 2016, Gopher's total assets under management reached RMB101.2 billion.
"Sequoia has been an important existing shareholder and business partner of Noah. We are excited about its decision to participate in our fast-growing asset management business. We
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