Capco has acquired FundClear Solutions, a private company created by Simon Luhr. FundClear has been working with Capco for some time to develop services that offer hedge funds an institutional quality operational infrastructure and applications on a managed service basis.
FundClear will now be integrated into a new business line within Capco called Capco Hedge Fund Services (CHFS). Simon Luhr and Gerry Buggy, co-founders of FundClear, have both joined Capco as Partners to lead the new business, and with a brief to expand Capco’s existing consulting and managed services activities in the hedge fund sector.
“With the integration of FundClear and the expertise that Simon and Gerry bring to Capco, we are now in a position to offer both start-up and existing funds a compelling, scaleable outsourced alternative to building and maintaining their own operations and technical infrastructure,” says Gopi Chelliah, Executive Vice President at Capco. “These new offerings neatly complement Capco’s existing managed services offerings in reference data management and reconciliations management and integrate powerfully with our consulting expertise in operational excellence and hedge fund operations.”
CHFS will offer hedge funds hosted front, middle and back office applications with full operations resources and support for individual hedge funds. The applications offered range from trade entry and flash P&L reporting to portfolio accounting, reconciliation, and risk management.
Capvco is promising that “each will be backed by expert operations and technology personnel who will operate the service. Clients of the service will be able to select some or all of these modules based on their needs. CHFS will also provide a, transaction hub which will significantly increase the efficiency of transactions between the hedge fund, its prime broker and fund administrator.
Simon Luhr says he is looking forward to “leveraging Capco’s excellent consulting and managed services capabilities to enhance fundamental parts of the FundClear offering. The combination of the two companies allows CHFS to offer an independent, robust and institutionalquality hosted infrastructure built to meet all investor due diligence requirements.”
Gerry Buggy adds that “we now have a first class opportunity to claim a niche position in the market place. We are an independent, neutral provider bringing ‘institutional quality’ infrastructure and real-time applications to hedge funds on a managed service basis.”