HSBC's Alternative Fund Services has launched a customised private equity administration platform tailored to the specific needs of its private equity clients.
"As an asset class that involves investment in primarily unlisted vehicles with a myriad of configurations, private equity managers require a tailored administration offering," says Paul Smith, Head of HSBC's Alternative Services. "The development that we have undertaken is based on the specific requirements of the private equity sector."
The new service platform supports comprehensive partnership administration including calls, closings, incentive and fee calculations, distributions, P&L allocations, financial and management reporting and extensive analytics. It underpins HSBC's Alternative Fund Services' focus on tailored single product technology platforms.
This development and implementation forms part of a strategic move into the private equity fund administration business. The bank currently has USD 10 billion in private equity assets under administration being serviced from six locations globally.
"Historically, our group has focused primarily on the development of platforms for the single manager hedge fund strategies and fund of hedge fund managers," says Drew Douglas, Head of Product Management for HSBC's Alternative Fund Services. "Over 2005, we have also focused considerable resources on building a service platform specifically for private equity asset managers and their investors.
"We recognised that to differentiate yourself in this marketplace and to provide a true outsource opportunity to this asset class, we had to invest in the right technology. We look forward to private equity administration becoming a much larger opportunity for us to grow with our clients."
The new system is now live at HSBC operations in Bermuda, San Francisco, Hong Kong and Luxembourg, and will be rolled out in New York, Guernsey and the Isle of Man in the coming months.
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