Solutions
Kroll Bond Rating Agency (KBRA) has assigned BBB Issuer ratings to three multi-strategy hedge funds: Kensington Global Strategies Ltd (KGSF), Kensington Global Strategies Fund II (KGSF II), Ltd, and Citadel Wellington LLC (Wellington), and a BBB Senior Unsecured rating to USD500 million of notes issued by Citadel Finance.
The notes are guaranteed on a several, but not joint, basis by KGSF II, Wellington, and KGSF Offshore Holdings Ltd (wholly-owned subsidiary of KGSF). The guarantor funds are managed by Citadel Advisors, LLC, the investment management subsidiary of Citadel Group.
Citadel Group, headquartered in Chicago, is a global hedge fund with a
Q&A with Dr Kyle Scerri (pictured), Regulated Industries and Compliance Advisor at CSB Group, a member of FinanceMalta…
How will the EU regulatory framework for digital assets impact Malta’s offer in the space?
The introduction of a proposed level playing field across the EU through the Markets in Crypto-assets Regulation (“MiCA”), will undoubtedly test Malta’s competitive advantage among promoters and service providers seeking a regulated forum for the issuance and establishment of digital assets. This, however, is a challenge which should be met with optimism rather than scepticism. Malta’s regulatory bodies and industry professionals have gained industry know-how by actively being
IS Prime, part of ISAM Capital Markets, has launched a new trading GUI and risk system with Reactive Markets, particularly aimed at its growing client base of FX hedge funds and asset managers.
This latest development from the FCA regulated Prime of Prime allows clients to combine their position management, charting, technical analysis, risk management and trading across FX, indices, cryptocurrencies and precious metals. Alongside this, clients are able to access trade analytics including slippage and latency statistics enabling them to trade more efficiently and effectively on IS Prime’s market leading liquidity.
The partnership with Reactive Markets combines features
Etrading Software, an independent, global provider of technology-led solutions designed for financial institutions and industry initiatives, has been nominated to become the exclusive Registration Authority, (RA), for the new International Organization for Standardization’s, (ISO), standard for Digital Token Identifiers (DTIs).
By Christian Pollard – Every year Opus participates in hundreds of audits where the goal is to distribute a clean set of audited financials out to interested parties in a timely manner. Each party involved in the audit shares a common desire for the process to be completed as smoothly and as quickly as possible, with minimum stress. However, it should not be underestimated how challenging this can be. A smooth audit process requires the manager, the administrator and the auditor to synchronise and work in tandem. Issues may arise anywhere within the 23 key milestones that Opus has identified as
By Ron Geffner – Investors and regulators continue to evolve, becoming more sophisticated and asking more probing questions. Now more than ever, successfully launching a hedge fund is dependent upon selecting the proper structure and complying with the ever changing federal and state regulations governing hedge funds.
Structuring a hedge fund involves both the creation of one or more entities through which investments will be made (domestic and offshore hedge funds), as well as the management entities through which the advisory services will be provided to the hedge funds (the general partner and/or the investment manager). The structure and domicile of
The trajectory of a startup hedge fund does not solely depend on the strength of the investment strategy on offer. Several elements must come together to set managers on their journey towards a successful first capital raise which will see them grow into emerging firms.
Startup managers in the pre or just launched stage should turn to private wealth and institutional investors when looking to raise their initial capital. Friends and family, their professional network and single-family offices can be their first port of call followed by larger seed investors, institutions with an appetite for early-stage investments and funds of
Investors are pushing their hedge fund managers to deliver better returns, and to revise their terms to better align with the specific needs of investors. This is leading to changes in fund terms and more dialogue with clients. Among other things, these adaptations include an increased use of hurdle rates among emerging managers as they aim to give their investors what they want. It is also a symptom of the growing need for flexibility in the startup arena where investors, managers and service providers must find that crucial symbiosis.
“The use of hurdles has always been there but whereas historically
Standardisation of data platforms around a core set of technology is critical for emerging managers, as it helps ensure business and technology alignment, increased efficiency, and improved security.
“It’s always important to make thoughtful, strategic decisions, but for emerging managers it’s even more salient. They have less financial room to make mistakes and less time to recover,” highlights Rich Itri, Senior Vice President of Professional Services, Eze Castle Integration.
He recommends startup and emerging managers recruit strong people early on, adding how the remote environment and distributed workforce has caused a shift in onboarding. However, in Itri’s view, technology is
By Philip Graham, Partner, Harneys – One of the most common scenarios we encounter is a US-based manager who initially establishes a domestic fund to attract US taxable investors. With the performance going in the right direction, the manager begins to think about US tax-exempt investors, such as charities, pension funds and university endowments, as well as investors based outside of the US, who like the track record and want to invest.
