AlphaMetrix today announced the acquisition of Spectrum Global Fund Administration -- a deal that creates an independent full-service hedge fund platform, with approximately $20 billion in client assets and more than 100 managers, according to company claims.
Terms of the acquisition were not disclosed.
With the acquisition, AlphaMetrix also introduced a multi-administrator hedge fund platform, which allows investors to choose from a pre-approved list of administrators. Among the administrator options is AlphaMetrix360, formed by the acquisition of Spectrum and both firms' proprietary technologies. The integrated offering is designed to lower platform costs to investors, providing a consolidated base cost for both platform and administration (including daily NAV calculation) of 20 basis points combined.
"AlphaMetrix's goal is nothing short of revolutionizing hedge fund investing," said Aleks Kins, CEO. "We constantly strive to give investors the tools they need to maximize returns and minimize risk, with entirely new services and lower costs for improved governance."
AlphaMetrix is also providing institutional and high net worth investors with more hedge fund investment services via the AlphaMetrix Hedge Fund Platform. AlphaMetrix, which historically has serviced Separate Manage Accounts (SMAs) for large investors and Pooled Managed Accounts (PMAs), will now support a third option: Governed Hedge Funds (GHFs). A GHF leverages AlphaMetrix's multi-administrator model and proprietary technology to provide its investors with greater governance and near real-time transparency.
"In order to build what amounts to the first true cost-effective governance platform for hedge funds, AlphaMetrix realized that integration with Spectrum Global Fund Administration was an ideal fit," said David Young, COO of AlphaMetrix and former president of Spectrum. "In short, AlphaMetrix has spent years developing proprietary technology for front and middle office operations, with a focus on near real-time investor reporting, risk management and portfolio tools, while Spectrum has spent the last 12 years building its own proprietary back-office general ledger and reporting technology."
Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio