Case study
The client, their challenge
Our client is a long/short equity investment manager, based in Stamford, Connecticut. When we first partnered with them, they were preparing to launch a single separately managed account (SMA) and a commingled investment vehicle, with plans for rapid growth.
For emerging managers, finding and hiring internal staff can be costly, time-consuming and distracting from their core focus of generating alpha.
The investment manager needed a robust solution that would support their scaling ambitions. They were looking to partner with a single vendor that could cover their requirements for middle-office support, outsourced CFO, compliance oversight, investor reporting, and technology infrastructure consultancy and implementation.
This client sought a solution that would:
- Ensure regulatory compliance and operational readiness from day one
- Provide a scalable middle and back-office infrastructure without the expense of hiring full-time staff
- Reduce set-up time by drawing on established operational frameworks and processes using trusted service providers
- Allow the investment team to remain focused on research, trading, marketing and fund-raising rather than administrative burdens
Our solution
We provided a full-service solution that addressed all aspects of the client’s operational needs. Our engagement covered several key areas designed to support their growth trajectory from launch through expansion.
- Comprehensive onboarding support: Order management system (OMS) / portfolio management system (PMS) selection and implementation as well as prime broker, trading counterparties and fund administrator account opening documentation
- Scalable operational solution: Allowing the client to quickly expand from a single SMA to multiple trading vehicles without rebuilding their trading and operational infrastructure and workflows
- Compliance and CFO support: Ensuring regulatory readiness and investor confidence without the need for costly in-house hires
- Vendor selection and management: Providing client access to vetted service providers, helping avoid the trial-and-error of building relationships from scratch
- Cost and staffing efficiency with built-in redundancy: Providing access to experienced professionals without the overhead of full-time operational teams while alleviating the risk and costs of turnover or gaps within small in-house teams
Results
Our solution enabled a faster, cost-efficient launch with institutional-grade infrastructure along with built-in support team redundancy. Since launch, the client has grown to over $2 billon in assets under management and expanded to 17 trading vehicles, all supported by a flexible outsourced framework that allows the investment team to remain focused on generating alpha and capital-raising initiatives.
