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Lighthouse partners takes on GlobeOp for fund of hedge funds administration

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Lighthouse Partners, a fund of hedge funds manager with more than USD6bn in assets under management, has announced it will expand its relationship with GlobeOp Financial Services to full-s

Lighthouse Partners, a fund of hedge funds manager with more than USD6bn in assets under management, has announced it will expand its relationship with GlobeOp Financial Services to full-service fund administration for all Lighthouse products.

GlobeOp, an alternative fund administrator and provider of business process outsourcing, financial technology services and analytics, already provides middle-, back-office and risk management support for the Lighthouse proprietary managed account programme.

More than 20 professionals from the Lighthouse operations team in Florida will work with around 85 GlobeOp staff in Connecticut, New York state and Mumbai to deliver around-the-clock post-trade processing for more than 60 managed accounts and five funds.

GlobeOp’s technology and scalable human resources will complement Lighthouse’s investment and operational processes, providing automated processing and reporting solutions designed to reduce operational risk and increase overall efficiency and transparency.

‘After our managed account programme and operations team integrated successfully with the GlobeOp middle- and back-office, it was a comfortable, natural next step to upgrade to a full-service relationship,’ says Lighthouse chief operating officer Rob Swan.

‘We now anticipate GlobeOp’s technology and business process innovations will add value through position-level transparency, operational controls, independent valuations and integrated risk reporting. That each is audited to SAS 70 Type II standards is important to our fund managers and investors alike.’

Lighthouse president and co-chief investment officer Sean McGould adds: ‘During the past three and half years Lighthouse has strategically converted from the standard fund of funds model to a managed account model that we believe will be the future of hedge fund investing.

‘Our team has developed strong portfolio and risk management skills over the past 15 years. Combining that expertise with managed account investing is already providing the increased transparency and risk reporting required by institutional investors.’

According to Swan, the continuing long-term growth of the Lighthouse programme required an established partner to handle post-trade processing, administration and reporting. ‘GlobeOp most effectively met our criteria for scalable and efficient processing of increasing trade volumes,’ he says.

‘Underlying Lighthouse managers already benefit from the integration with GlobeOp’s web-based middle- and back- office trade processing services. This partnership also provides our fund managers and investors with increased independence, timeliness and transparency.’

GlobeOp president and chief operating officer Vernon Barback says: ‘We are pleased to be strengthening our relationship with Lighthouse Partners to provide full fund administration services.

‘As they strategically expand managed accounts, we look forward to underpinning their fund managers with a robust infrastructure and flexible services. GlobeOp’s investments in people, processes and technology are designed to provide clients like Lighthouse Partners with quality services and a long-term competitive advantage.’

Founded in June 1999, Lighthouse Partners has more than 65 employees at offices in Palm Beach Gardens, Chicago, New York, London and Hong Kong. The firm manages multi-strategy funds of funds, a stable of focused credit, global equity long/short and managed futures funds, more than 60 managed accounts and five funds structured wholly in managed accounts.

GlobeOp Financial Services provides integrated middle- and back-office, administration and risk reporting services to hedge funds and asset management firms including banks, insurance companies, mutual funds, pension schemes and proprietary traders.

Established in 2000, GlobeOp serves more than 180 clients worldwide with USD108bn in assets under administration and has some 1,800 staff at headquarters in London and New York and offices in Dublin, George Town (Cayman Islands), Harrison (New York), Hartford (Connecticut) and Mumbai.

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