Investment managers have seen their regulatory and compliance burden inch upwards for years. The use of management companies in jurisdictions like Luxembourg has sought to ease this load. Investment managers are welcoming the additional support provided by a third-party ManCo, allowing them to concentrate on their core capabilities of managing money.

Apex Group Ltd, a global financial services provider, has acquired Pacific Fund Systems, a global fund administration software business serving open and closed ended traditional and alternative funds, including hedge funds and private equity investment vehicles, from co-founders and Pollen Street Capital.

Options Technology, a capital markets services provider, has partnered with Tools for Brokers (TFB) following a successful integration with recently acquired ACTIV Financial's ACTIV application programming interface (API).  

It’s nearly a year since the ICARA regime was first introduced in the UK by the FCA, replacing the ICAAP framework that was part of the previous prudential regime.

With the increasing popularity of alternative investments, in particular in the areas of private equity, private debt and real estate, we have witnessed that there is more demand in realising such investments via Luxembourg alternative investment fund structures (the “AIFs”) by international eligible investors. In the EU, AIFs were introduced by the Alternative Investment Fund Manager Directive (Directive 2011/61/EU, the “AIFM Directive”), which regulates managers of funds other than those under the Undertakings for Collective Investments in Transferable Securities Directive (Directive 2009/65/EC). 

The alternative investment industry is developing new ways of sharing data across the whole value chain – from portfolio companies and holdings to funds and investors – and from asset servicers to asset managers and asset owners. Luxembourg, as a fund domicile, has been building its niche of expertise in this space and evolving to better serve the whole eco-system as the appeal of particular asset classes continues to grow.

In a crowded market where fund-raising is challenging, hedge fund managers need to make sure they are clearly articulating their investment story. Professional supporting materials to get their thesis across to potential investors are also critical to raising funds. Strategic partnerships are also becoming more common in the industry as hedge fund managers look to leverage the distribution power of larger, more traditional money managers.

The Vienna Stock Exchange's new market data distribution infrastructure has gone live providing over 270 customers with stock market data from 11 markets four times faster than before. 

The dramatic changes to the prime brokerage landscape have provided an opportunity for new, modern firms to find their place in the industry. Hedge funds are looking for alternative funding solutions, which is resulting in new market participants and broadening the ecosystem to the benefit of the industry as a whole.

Uncertainty around a myriad of financial, political, and social issues represents the greatest risk the asset management industry currently faces. In this context, insurance continues to be an important hedging tool to help cover unexpected expenses associated with the impact these issues can have.