Citco flies the flag for organic fund administration growth

Fund administrator hits new highs with $1 trillion in AuA through growth in private capital and the APAC region.

By Jonathan Watkins

Citco has reached $1 trillion in assets under administration (AuA), claiming it is the first to do so through organic growth.

The fund administration industry has been rife with consolidation in recent years with widespread M&A activity from administrators including SS&C Technologies and Apex Group to name a few.

Citco has been vocal in recent years about its growth philosophy, which is yet to include an acquisition.

According to the fund administrator, growth in private capital and in the Asia-Pacific region tipped it over the $1 trillion mark, after 2017 saw strong growth from the private equity servicing sector.

Citco reported AuA of $950 billion at the end of 2017, up by nearly 16% year-on-year, with the $1 trillion in 2018 representing a 5% growth.

This is despite reports this week of hedge funds suffering their worst aggregate performance since the financial crisis, according to data from investment firm LCH Investments.

The annual statistics showed that the top 20 funds made $23.2 billion for their investors last year while the rest of the industry lost $64.2 billion.

Citco’s results show the importance of fund administrators focusing on growth areas such as private debt and private equity and real estate.

The administrator also put the growth down to fund managers outsourcing more functions.

“As a private company focused on servicing alternative investment firms, and with the support of our ownership, the Smeets family – who founded the business in 1948 – we have been able to adopt a long-term mindset when it comes to investing in our people and proprietary technology,” said Jay Peller, head of fund services at Citco.

“We have leveraged that support to form relationships with clients that span decades. Our ability to deliver the right solutions in support of our clients’ businesses and investors has been of paramount importance to our success story.”