Read evergreen insights on various topics from STP colleagues
Launching a Hedge Fund – Part 1: Think Tank
2023 witnessed robust growth in the hedge fund industry, with over 438 new funds launched. This upward trend has continued into 2024, with more than 146 new funds launched in Q1 alone, marking a 70% increase compared to the same period in 2022. (Hedge Fund Research, 2024)
To navigate this evolving landscape, STP is presenting a five-part series on launching a hedge fund. This series will guide you through each crucial step: from conceptualizing your idea, selecting the right strategic partners, and leveraging technology, to growing your fund and preparing a final checklist to ensure market readiness.
Anti-Money Laundering Requirements for Registered Investment Advisers
Investment advisers have been anticipating the adoption of anti-money laundering (AML) requirements, already applicable to broker-dealers, banks and other financial institutions since May 2023, when the Financial Crimes Enforcement Network (FinCEN) first proposed AML requirements be applied to investment advisers.
After more than two decades, AML requirements for investment advisers have finally been adopted.
Switching Fund Admin Providers? 5 Steps to Ensure a Smooth Transition
Many fund managers who have switched their fund administration to STP Investment Services have consistently praised us for our outstanding customer support, thorough project planning, and customized transition plans.
The Benefits of Outsourcing Fund Administration
As an investment management firm, ensuring the efficient operation of your fund administration is crucial for your overall success. Outsourcing this function can offer numerous advantages that streamline your processes, reduce costs, and enhance your focus on core activities. Here, we delve into the key benefits of outsourcing fund administration, providing you with a comprehensive understanding of how this strategic move can support your firm’s goals.
5 Common Challenges in Fund Administration Outsourcing and How to Overcome Them
Outsourcing fund administration can be a strategic move for investment management firms, offering numerous benefits such as cost savings and access to specialized expertise. However, it’s not without its challenges. Understanding and addressing these challenges is crucial to maximize the benefits of outsourcing. Here, we explore the common pitfalls firms may encounter and provide practical solutions to overcome them.
Five Reasons Why a Private Equity Firm Should Outsource their Fund Administration
New technologies and advancements are constantly enhancing operations at fund administration companies, making it valuable to explore STP’s top 5 reasons why a Private Equity firm should consider outsourcing their fund administration.
First and Second Generation Middle-Office Outsourcing
I write and speak often about the strategic value of middle-office outsourcing. I’ve been in this business for more than 25 years, and here’s what I’ve noticed. At a high-level, it’s a crucial component that allows investment managers to execute their business strategies more effectively. Whether firms are entering new asset classes, launching products faster, or expanding geographically, an outsourced middle-office facilitates faster and more efficient execution compared to an insourced platform.
Upholding Excellence: A Commitment to Quality at STP
What does this have to do with STP?
At STP, our commitment to quality (integrity) isn’t just a slogan; it’s ingrained in every aspect of our operations. Similar to the United States Air Force’s meticulous approach to aircraft maintenance, where even the smallest oversight can lead to significant consequences, we understand that every detail matters.
The 5th Circuit Court of Appeals overturned the entire Private Funds rule as promulgated by the SEC
In a decision released on Wednesday, June 6th, the New Orleans-based 5th U.S. Circuit Court of Appeals ruled in favor of six private equity and hedge fund groups, finding the SEC exceeded its authority when it adopted the Private Funds Rule in August 2023.
Increased Transparency, Increased Scrutiny: Private Funds Navigate New SEC Rules
Increased Transparency, Increased Scrutiny: How Back Office Support Can Help Private Funds Navigate New SEC Rules
The landscape of private fund investing underwent a significant shift in August 2023, when the Securities and Exchange Commission (SEC) adopted a series of reforms targeting private fund advisers. These new regulations aim to strengthen the industry with enhanced transparency, investor protections, and governance standards. They also introduce additional compliance burdens for private funds.
The Evolution of Outsourcing: What’s Driving Trends in the Middle-Office
Today’s institutional investment management firms are up against more challenges than ever before. Regulators continue to up the regulatory ante, operating costs are under increased scrutiny and the talent war rages on. At the same time, rapidly shifting macroeconomic expectations are influencing changes in investor demands that require nimble responses from investment managers. It’s against these constraints that firms find themselves increasingly looking for new ways to free up valuable time and resources in order to respond and optimize their business strategy.
The middle office is one of the most logical starting points we see when firms are starting to assess where efficiencies are to be made. For example, the investment book of record (IBOR) is a common target for firms to outsource and includes everything from post trade execution to performance analytics and end client reporting. Many argue the middle office is not a core competency and represents an opportunity to reduce costs and move to a variable cost model to drive efficiency and operating leverage.
Fund Administration in 2024: An Overview of Everything Impacting Your Fund Admin This Year
The main fund administration trends, in particular, we see growing more important in 2024: regulatory compliance and investor reporting.
