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Appetite for regulated funds persists

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Crestbridge: Best Regulatory Advisory & Compliance Firm – The alternative funds industry has continued to see a shift from unregulated structures to funds, a trend which is expected to persist. With increased scrutiny from regulators, managers will have to invest in additional resources covering for independent control functions.

“Managing the increased regulatory requirements alongside growing operations are the primary challenges the industry is facing. Increasing regulatory and substance requirements are making asset management operations more expensive to run and compressing margins,” details Daniela Klasén-Martin, Group Head of ManCo Services, Crestbridge, “In order to manage growing operations in line with the regulator’s expectations and at the same time keep profitability, it is important to focus on people, process optimisation and systems implementation to scale the operations.”

In view of these changes, Crestbridge has been consistently investing in its risk management and transaction monitoring systems, including automated due diligence and KPI reporting system to cover for the increased initial and on-going oversight requirements.

Crestbridge has also capitalised on these developments throughout the years, strengthening its outsourced regulatory offer; in particular 3P management company services, independent risk management and MLRO services in different jurisdictions.

“This year, despite the general turmoil as a consequence of Covid-19, we have seen substantial growth in our fund regulatory business. Specifically, we registered increased demand of our third party ManCo solutions, for both UCITS and AIFs, supporting managers to cover for the increased regulatory requirements.

“We support our clients with bespoke regulatory solutions that enable them to cover their regulatory requirements and continue running their operations, focusing on their key strengths while outsourcing substance, governance, and regulatory reporting to a trusted party. Our 3P ManCo offer is a robust and flexible solution. It allows managers to continue being able to access the European market and respond to the institutional client base demands for regulated, AIFMD-compliant funds.” Klasén-Martin outlines.

Covid led organisations to adapt quickly to remote working. It has been a catalyst for change and led to an acceleration of the digitalisation trends which were already on the agenda. Klasén-Martin notes: “Our operations have been growing rapidly and we have made a substantial investment in people, technology, and process optimisation to continue supporting our clients and to offer. We strive to be a premium employer, offering interesting positions, training and a nice and a flexible working environment. This is important to attract and keep millennials on board.”

Crestbridge aims to continue supporting the growth of its clients and of its own operations, through investment in systems, process optimisation and quality people. “Clients are at the heart of our strategy as we constantly listen to their needs to ensure we develop the right offer, technology, and skills to better support their needs,” Klasén-Martin pledges.

This progress includes opening a new office in Ireland, hiring Andrea Lennon as head of funds, Ireland. Announced in March 2021, this news came on the back of Crestbridge setting up its New Jersey office. Alongside the existing Luxembourg office, the new Dublin operation further assists the firm’s ability to support US investment in Europe in the context of Irelands new law governing Investment Limited Partnerships. 

Daniela Klasén-Martin, Group Head of Management Company Services & Managing Director, Luxembourg, Crestbridge
Daniela Klasén-Martin has nearly 30 years’ experience in risk management, financial management and corporate governance across various jurisdictions. She joined Crestbridge to lead the development of our Luxembourg office and launch our management company services. Previously, Daniela was Head of Finance for a major global asset manager and CEO for one of the first independent management companies. She is a member of ILA, ALRiM, sits on various ALFI committees involved in risk management, fund governance and TER and is a regular speaker at industry events.

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