Alts
Alternatives
The expansion into Alternative investments continues to proliferate. Ensuring that you are well set up operationally and technologically to efficiently deliver your proposition enhances your competitive edge. Our wealth of experience across Hedge Funds, Private Equity, Real Assets (such as Real Estate and Infrastructure) and Alternative Credit brings specific Alternatives expertise to help develop and enhance your operating model.
How we work with clients
We work with leading asset managers with alternative businesses and standalone Alternatives asset managers too, providing services from front to back of the investment lifecycle.
Our support includes:
- Target Operating Model: Designing and implementing front to back operating models
- Technology: Selecting and implementing leading front office tools such as eFront and Yardi
- CX: Enhancing client experience with investor relations or client onboarding design
- Auomation: Automating manual processes with innovative technology solutions
- Service Providers: Selecting and migrating to new middle and back office operations service providers across complex alternative asset classes
Why Alpha?
We have run and delivered a number of complex global projects across all alternative asset classes. Simply put, no other consultancy can match our expertise and know-how in this space.
Our clients are offered unique insights on leading technology solutions and outsource providers to enhance their operating model and increase efficiencies.
Our insights are also grounded in deep implementation experience. We are readily available to turn advice into practical actions.
Q&A with Joe Docker, Executive Director
How are the challenges faced in Alternatives different from that of the asset management industry?
Stand-alone Alternatives firms have both opportunities and challenges due to their size. Due to the relatively small scale, operating models can be iterated in an agile process and tailored to the changing needs of clients. In addition, while there is less room for standardisation, if the firm invests in understanding their strategy and objectives, it can tailor the technology and accompanying processes without the need to compromise across asset classes.
However, these are organisations which have largely avoided the operational changes required by the industry over the last few years and, as such, will require a greater change management initiative. Firms are also significantly less likely to have a scalable change function which can implement innovation, in addition to best practice being less transparent than it is in larger firms.
Are there consistent themes across alternative segments?
Record levels of committed capital are leading to a increased competition for assets to invest in, and the potential for inflated valuations.
A reassessment of manual operating models by rapidly scaling businesses, and a reconsideration if the suitability of technology and outsourcing solutions.
Consolidation of smaller firms to meet increasing regularity compliance costs and benefit from distributing multi strategy solutions.
How does innovation differ between a stand alone Alterantives manager and asset class desks in a larger management firm?
Due to the proximity to the end client, alternative firms have the benefit of being driven directly by their client's requirements - meaning feedback is quick and the benefits more readily understood.
Large asset managers on the other hand, have largely been driven by changes in regulations, cost pressures and mergers across the industry. This has created a reactionary culture, with many managers responding to the latest obligation rather than focussing on tailoring their service to clients needs.
What value can Alpha add to Alternative investment managers?
As a more diverse set of asset owners move into alternative assets, they will bring with them an increased set of requirements - in terms of regulatory reporting, on-boarding challenges and greater transparency. Alternative Managers will have to update systems and processes quickly to meet these challenges and remain competitive.
There is significant scope for automation in the deal execution and reporting space.