Fund sponsors are upgrading to more sophisticated fund governance solutions by moving beyond the friction of limited service providers to more widely-adopted institutional protocols.
This growth is reflected in DMS Offshore Investment Services' 54 per cent increase in assets under management of its client funds from the prior year – which jumped from USD214bn to USD330bn – and is based on significant demand for its institutional fund governance services, particularly regulated directors, fund governance transparency reports, and independent director reports.
The firm increased its talent to more than 200 professionals during the same period.
"DMS is a full service provider and we are so grateful to our fund sponsors who are responding incredibly well to the market-leading DMS fund governance ecosystem. Our fund governance services keep getting better and offer more directors, risk management and transparency reporting solutions that you won't find anywhere else,” says Don Seymour, founder of DMS.
According to the 2011 CIMA Statistical Digest, over 68 per cent of hedge funds have assets under management of USD100m or less, but even small funds require an effective fund governance process to attract investment and grow. Hedge funds, small or large, are dynamic and sophisticated businesses that require the same of their service providers to meet growing business challenges. Limited capacity providers by definition have limited resources of people, risk management process, technology and capability to effectively serve growing funds.
"Investment managers are continuing to take advantage of our broad selection of both regulated directors and directors together with our proprietary fund governance technologies to deliver more value to their investors. Our scalable fund governance offerings are helping investment managers succeed in many ways. It's exciting to see our managers leveraging our massive people resources plus our world's largest database of fund governance data and relationships in benchmarking their operating practices to accelerate the due diligence process,” says Kathleen Celoria, executive director of DMS.