by HFBOA
3. January 2011 18:57
The hedge fund universe is entering a new post credit-crisis era of increased institutional flows resulting in demand for greater Investor transparency and increased regulation & oversight. In this new environment, organizational maturity - a hedge fund's ability to match its operational and infrastructure needs with its size and scope - is becoming a key differentiating factor. The maturity of a fund's organizational structure, the robustness of its operational controls, and the resilience of its technology infrastructure are becoming determining factors in the allocation of capital.
In the second Prime Finance publication of 2010 this key topic has been explored through over 75 in-depth interviews with COO's, CFO's, and heads of strategy, from a broad cross section of hedge funds from start-ups and spin-outs, to emerging funds and institutional size firms, up to the franchise heavyweights of the industry. These interviews provide the foundation of views put forward in this article.
Findings of these interviews have been translated into a Hedge Fund Maturity Model that details the organizational, operational and technology characteristics of hedge funds across four stages of maturity linked broadly to the size of their AUM. This maturity model provides a framework for the industry to discuss organizational "best-practice" and forms the foundation for the Citi Prime Finance Business Advisory team to partner with our clients and help them shape their evolution and growth.
To view the full report please go to:
https://primebroker.citigroup.com/public/PlanningforChange_Dec2010.html
*this was reposted with permission from Citi*