SS&C GlobeOp sees increased growth from private equity administration

Private equity assets made up a third of SS&C's $1.52 trillion assets under administration in 2017.
By Joe Parsons

SS&C GlobeOp, the fund administration arm for tech giant SS&C Technologies, grew 12% in the fourth quarter following a larger number of private equity and real estate mandates.

Total assets under administration (AuA) for the business stood at $1.52 trillion at the end of 2017, with private equity assets making up a third of AuA, according to Rahul Kanwar, head of SS&C GlobeOp.

On the company’s fourth quarter earnings call, Kanwar said to analysts that it is developing more products to meet the increased adoption of private equity funds.

“The private equity and real [estate] assets are growing faster than hedge funds, although hedge funds did come back [in the year]. I think from a pricing standpoint we really spent a lot of time and effort on new products and services and capability,” said Kanwar.

In the year SS&C completed the acquisition of Commonwealth Fund Services, a Toronto-based fund administrator specialising in private equity funds, real estate funds and hedge funds.

Also in January it acquired ALPS from DST Systems, giving it new capabilities in mutual fund administration services.

“Client usage on some of our largest customer-facing applications has doubled from this time a year ago, a positive sign for how our technology is being received,” he added.

Kanwar explained some of its top fund administration mandates in the fourth quarter included one of Canada’s largest wealth management firms, the investment management arm of a UK bulge bracket bank for middle-office services, and $13 billion US private equity manager Varde Partners.

It also won a real estate fund administration mandate for US Agriculture and its new core real estate strategy.

Last year SS&C GlobeOp formed a new Real Estate Assets division, combining its fund administration technology with its residential and property management platform. 

“In fund administration, while hedge funds have regained strength in 2017, our private equity business and our real assets remained our fastest growing market,” said Bill Stone, CEO and chairman, SS&C Technologies on the call.