Our client had identified a lack of fit with their originally selected administrator. During a phase of significant change, including restructuring the fund and amending the performance fee mechanism, we successfully transitioned the client in and provided the significant benefit of our experience throughout this crictial phase of change for the client, including liaising with the investment manager, directors and lawyers on the proposed structural changes.
We assisted another AIFM client through the initial phase of their set up project through to the successful launch of their fund. As administrator, we continue to support the manager through a growth phase which has brought the fund through $1.5bn in a period of 6 months, providing assistance in a variety of key areas, including liaising with a significant number of institutional investors and global investment consultants to assist them with their due diligence and investment.
Our client was exiting a major asset management house with a $100m fund, which they were restructuring, including introducing extremely complex fee arrangements, changing custodian and initiating a phase of significant capital raising. The fund was primarily focused on U.S. based institutions and foundations. We successfully transitioned the fund in under very tight deadlines and then administered the fund through a growth phase that took the fund from $100m through $3bn.
Another client was exiting an institutional bank administrator. We met with the client and listened to their plans. We understood their long term growth strategy and discussed the steps they had identified as necessary to achieve their plans. We then stepped in and supported the client who was beginning a further growth cycle. This included transitioning in an active shareholder register with a full review and update of investor AML documentation.
By focusing on the long term continued ownership of a successful business we are providing an environment which is relatively unique in our industry. This allows us to continue to build our service model, and determine the ongoing investments we should make in our business, with the sole objective of providing an exceptionally high quality fund administration service for our clients over the long term. We are not distracted by external owners’ interests.
Our team of people, our organisation structure and our service model allow us to position ourselves much more closely to our clients business and to better understand their broader requirements. Our experience and skills put us in the position of being able to identify opportunities to add value for our clients in how we work with them.
We understand that we provide a key interaction point between our clients and their end investors. We recognise that the services we offer to managers are vital to their relationship with their investors. We approach our interactions with client investors with a focus on understanding their requirements and ensuring our services, as administrator to the fund they are invested in, extend out to meet their needs.
We are not for everybody. We will continue to invest in our people and our business to ensure we can continue to build our client relationships over the long term. We will focus on adding the right relationships. Our model and the focus for our business allow us to continue to attract high quality people to join our team and we want to focus that resource in the right direction.
We believe recent regulatory change has strengthened the argument for the selection of an independent administrator. Through the AIFMD consultation and implementation phase, European regulators have urged heightened focus on the importance of independent parties acting for a fund. We feel there is significant value in ensuring the extension of this idea, such that administration and depositary oversight should be fully independent of each other. Such a structure would enhance general confidence in the oversight structure for funds, and, more importantly, should enhance investor confidence.