A technology platform led by GC Legend and JP Morgan’s former CEO of alternative investment services has launched a new tool for fund of hedge fund managers to monitor their administrators.
Robert Caporale’s Exchangelodge, a provider of SaaS digital process and data integration solutions to alternatives investment managers, has launched version 2.0 of its platform, which includes a fund administration oversight module.
The new module automates a fund of hedge fund manager’s review of their administrators by utilising workflows, business rules, and data interrogation to highlight exceptions. These include identifying pricing and transaction accuracy exemptions, as well as new reporting and management dashboard tools.
“Exchangelodge allows alternative asset managers, investors and administrators to automate key business processes,” said Caporale, CEO and founder of Exchangelodge.
“Our new Fund Administration Oversight module eliminates the need for costly shadow accounting and manual reconciliations.”
Alternative asset managers have been forced to step up their oversight of third-party administrators to ensure crucial data around their funds is accurate, both for regulatory and end-client purposes.
Bridgewater Associates, the world’s largest hedge fund, helped launch the industry’s first dual-outsourcing model, using BNY Mellon as its middle-and back-office provider and Northern Trust as an independent verifier of fund accounting, investment book of record (IBOR), trade reconciliations and reporting.
However, some fund managers may not have the scale of larger funds or the resources to run their own in-house shadow accounting systems.
Earlier this year, Swiss tech vendor Temenos established a collaboration with Bloomberg to off its Multifonds Global Accounting product to buy-side institutions, via the Bloomberg terminal.