Maitland grows North America business
Tue, 10/01/2017 - 12:53
Maitland is one of the industry's largest independent hedge fund administrators with USD280 billion in AuA. With more than 1,300 employees across 16 offices globally, Maitland is more than a fund administrator. It is a global advisory group, with its roots as an innovative law firm in Luxembourg in 1976 offering cross-border structuring solutions to corporates and some of the world's wealthiest families.
This in-house legal and tax expertise, as well as Maitland's independence, set it apart from most other fund administrators – and means that it is ahead of the game when it comes to administrators moving up the advisory services chain of added value.
"People like our ownership structure, the fact that we've been in the business for more than 40 years. As we continue to expand in North America we maintain an entrepreneurial mindset that we bring to every client meeting. We want each client to be a long-term partner," says Scott Price (pictured), Head of Business Development and Client Management (North America).
"One of our mid-tier global macro managers middle office team was spending a lot of time preparing its daily reconciliation and end-of-day reports, so they decided to leverage our technology, staff and infrastructure, so as to focus on the outcomes of the reports as opposed to spending a lot of time producing them in the first place."
Technology proficiency is important for any ambitious hedge fund administrator. Maitland's technology group integrates each client's workflow processes, from its OMS / PMS, to receive trade information as soon as possible.
"This means we can assist them with intra-day, end-of-day, customised reporting which really helps the management company leveraging our technology infrastructure so they don't have to buy it themselves," says Price.
Price is located in New York City, one of two client-facing offices including Miami. He and his team – including client relationship managers – work directly with Maitland's operational centres in North America, one in Richmond, Virginia, the other being Halifax in Canada. Price says that 2016 was a `growth year' with respect to Maitland's North American business.
"A number of clients have launched new products and in terms of expansion and product development, we've stepped up our presence in New York and Miami and have more client-facing staff and business development staff. That has enabled us to get closer to our US clients and we've been successful at winning some nice mandates, not just in hedge funds but private equity as well."
Price confirms that it is substantially increasing its middle-office capabilities, allowing clients to outsource more of the operational and regulatory/compliance work that would ordinarily have been handled internally.
"The pressure that fund managers have been under the last few years, from a performance perspective, has led to an increased need to generate operational alpha. Clients are leveraging our technology, infrastructure and headcount to do more work for them on a daily basis.
"One way to do that is to lean on service providers to perform tasks that historically they were not asked to perform. We've got great experience with outsourcing where we will work with management company staff and take on customised processes to support their business," says Price.
Price says that what makes Maitland unique to alternative funds is the level of investment to technology and commitment to human capital it dedicates to clients to deliver a high quality service. "What that translates to is a relationship model that offers a daily and strategic partnership that is both flexible with our clients' changing needs and nimble to support our clients' growth."