Admiral Administration, a fund administrator with $30 billion in assets under administration, is teaming up with Paladyne Systems to offer client-facing technology and expanded middle- and back-office services to alternative investment managers.
Post-Madoff, many self-administered hedge funds in the US, in particular are shifting to a fully administered operational model as they seek to satisfy new transparency requirements and achieve greater cost efficiencies. With assets and revenue down across the industry, the marketplace is now demanding that fund administrators offer their clients more value-added services, including technology and middle-office support as well as traditional fund administration.
While demand for middle and back office services is increasing, competition is heating up. Administrators have about a 12-month window to compete for this new business, which will allow them to command higher fees.
The Paladyne deal means that Admiral will be able to provide its clients with the PALADYNE product package, an integrated front-to-back-office tool with functionality that includes front-office trading, portfolio management, real-time P&L and custom reporting. Admiral will also use the Paladyne ASP application to host the PALADYNE suite as well as Advents Geneva to facilitate expanded middle-office services and streamline client communication and data.
L.D.