Citco Fund Services and OpHedge Investment Services have joined forces to provide their clients with enhanced fund administration and operational support services.

Citco Fund Services provides full service hedge fund administration and has USD550bn in assets under administration, while OpHedge provides operational support capabilities to complex hedge fund strategies and has USD38bn under administration.

Under what the parties describe as a royalty agreement, Citco becomes the sub-administrator of funds serviced by OpHedge and the two firms will share revenues, but according to William Keunen, Citco Fund Services divisional director, Citco hasn’t acquired OpHedge, nor has it taken a stake in the company.

“It’s not an acquisition," he says. "Clients still have their agreement with OpHedge, but all services are sub-administered to Citco with revenues and staff moving across to Citco.

“We already know each other well through working together on mutual clients, our technology is already integrated, now we can focus on establishing best-of-breed across both organisations – and this can only be good for all our clients.”

Peter Sanchez, chief executive of OpHedge, adds: “Through a series of mutual sub-administration agreements, the combined business will enable us to leverage each others’ capabilities to enhance our offering to new and existing clients as the industry continues to seek dedicated, specialised expertise and enhanced technology capabilities.” 

OpHedge’s clients will continue to be serviced out of OpHedge’s current locations in Rye Brook, New York and Shanghai, China, adding further capacity to Citco’s existing 18 fund administration locations worldwide.


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