The Bank of New York recently surpassed the $100 billion mark in hedge fund assets under administration. In the last five years, the banks growth among funds of hedge funds, multi-strategy hedge funds and European-based hedge funds focused on fixed-income and credit investments has helped it increase its hedge fund assets under administration from $16 billion to $100 billion.
Last year, the Bank of New York posted a 41 percent increase in assets under administration. Its hedge funds have also grown in average fund size and number of fund structures services.
“We have posted consistently strong organic growth in our hedge fund administration business by customizing our core operational and technology expertise to meet the unique needs of the industry,” says Brian Ruane, executive vice president at The Bank of New York. “With institutional demand for hedge funds expected to triple by 2010, we are uniquely positioned to serve this burgeoning industry through hedge fund administration and a variety of other securities services.”
Institutional demand for hedge funds will increase from the current $360 billion to $1 trillion by 2010, according to a new study by The Bank of New York and Casey, Quirk & Associates LLC.