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RECENT NEWS

  • Gemini surpasses USD30bn in crypto under custody
    by clara.dijkstra on May 12, 2021 at 8:57 am

    Gemini surpasses USD30bn in crypto under custody Submitted 12/05/2021 - 9:57am Gemini now has more than USD30 billion in crypto under custody. Tracking with the impressive growth of the crypto market this year and increased participation from institutional investors, the company have more than tripled its crypto under custody since the beginning of 2021. Gemini Custody includes: Qualified Custodian; Offline Cold Storage; Hardware Security Keys; Approved Address List; Instant Liquidity; Web Interface; and Sub-accounts. The company serves a range of institutional clients, including hedge funds, trading firms, corporate treasuries, and asset managers. In March, Gemini launched Gemini Fund Solutions, which supports more crypto fund issuers than any firm in the world. and the company has assisted asset managers in successfully launching several exchange-listed crypto funds, including the first North American bitcoin and ether ETFs. Gemini's custodial services are used by some of the worlds largest asset managers including BlockFi, Blockchange, CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors, and WealthSimple. Did you like this article? We’re holding an online digital assets summit on 10 June. Click here to claim your place… Like this article? Sign up to our free newsletter Tags Digital Assets

  • Planning for the unexpected
    by mkitchen on May 11, 2021 at 4:56 pm

    Planning for the unexpected Submitted 11/05/2021 - 5:56pm By Joel Press, Press Management – In previous columns we have addressed the topic of Succession Planning in the context of factors to consider, and also the transition of leadership from a Founder to a named successor.  Those discussions presumed that the Founder and management team had the time and ability for thoughtful discourse and planning to insure an orderly transition. Unfortunately that is not always the case.  Key considerations for hedge fund succession planning – Part I Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity What happens if the Founder unexpectedly passes away, or is incapacitated due to an accident or serious illness and can no longer manage the firm? In these situations you don’t have the luxury of time to plan, and in the case of the death of the Founder, may not have their insight or wishes to guide you in decision making.  This process can be simplified if a Founder codifies a succession plan well before one is ever needed.  In that case all one would need to do would be to follow the steps as outlined.   That is why my advice for new managers is to work on a “Death/Disability/Retirement Plan” at the same time they are putting together their documents to launch their fund, or soon after.   Realistically few managers have the energy, or desire, to think about the possibility of ever shutting down when they are launching so they put this process on the back burner.  I think of this process similar to entering into a prenuptial agreement prior to a marriage; planning in advance, while uncomfortable, will save many headaches later if the document is needed.  The Founder should be thinking of this from two distinct and equally important and interrelated perspectives; as the fiduciary of investor’s capital the Founder wants business operations and portfolio management should continue seamlessly, and as the owner of often the largest portion of the management company and a significant amount of invested capital the continued success of the firm is key to preserving assets for the Founder and family.    When faced with the sudden reality of a Founder who can no longer operate the firm and supervise the portfolio the key question is who becomes the person in charge? Is the same person responsible for portfolio management as well as firm operations?  This discussion presumes that the Founder has maintained control of ultimate decision making of both portfolio structure and business operations. In the best case the Founder would have prepared a letter of instructions or direction in the founder’s will naming specific individuals to take on responsibilities within the firm. Without a letter detailing a plan for such a scenario, if the Founder is disabled, the individual holding the Founder’s Power of Attorney would represent the Founder’s interests; in the event of the Founder’s death, it would be the executor of the Founder’s estate. Without  direction in Founder’s will or a letter of wishes to stipulate who that person will be, the holder of the Power of Attorney or the executor of  the Founder’s estate – which could be the founder’s spouse, friend or an institution – would likely run the firm or name the person to oversee operations and portfolio management.  If an outsider were to be named to this role, it could lead to potential ongoing leadership issues, and tremendous discord within the firm. A disruption of operations at the management company level might create a potential breach of the management company’s fiduciary responsibility to investors if fund assets are not properly managed.  If the Founder’s spouse is named, they will suddenly be responsible for running the management company and overseeing the portfolio. If they are not knowledgeable about the business, in the interests of protecting the estate, they might fire analysts, traders, or other staff to lower overhead in the belief they are acting in the best interests of the estate to preserve the capital of the family. These are only the internal issues.  A larger issue will be the perception of investors that the firm may no longer be managed under strong professional leadership. Loss of significant assets will quickly diminish any value in the management company. Both the internal and external issues could lead to the loss of valuable staff needed for continuity.  To avoid getting into such difficulties, a document should be created detailing what the transition of leadership would look like so there can be no question as to who can take what actions, how decisions are made, and representation of firm leadership and Founder’s representatives within the management company structure. This letter of instruction would be utilized in any situation where the Founder was no longer able to actively participate in the management of the portfolio or the operations of firm.  Needless to say, in either scenario, the newly appointed leader of the firm should be someone who understands the needs of the fund, and the vision of the Founder on the options available: try to continue the fund in the current form (if this is the desired option, the economics to the Founder’s heirs and continuing fund management need to be documented as outlined in the previous succession planning blogs), close the fund, or try to sell the firm.  The Founder therefore needs to create a linkage of the transition for the business with the estate. The family, and other members of firm leadership, needs to know that everything is synchronised and that the best interests of all parties have been considered. All of the legal considerations around the Founder’s wealth and financial wellbeing have to be brought into context so that the implications of death are understood.  Typically, I work with Founders to create all the critical terms and processes necessary, from both the business and estate points of view.  Once that is done and the term sheet is completed I then bring in the attorneys representing the business and the Founder’s estate planning to codify the documents. This process helps minimises legal costs and cuts down the number of drafts needed.  It’s an uncomfortable thing to have to think about but by avoiding it, you’re opening up the potential for disruption of the firm, resulting in decreased franchise value as well as increased legal expenses for the estate and the firm.   Like this article? Sign up to our free newsletter Author Profile Tags Comment

  • Arcesium adds senior hires to sales team
    by mkitchen on May 11, 2021 at 4:46 pm

    Arcesium adds senior hires to sales team Submitted 11/05/2021 - 5:46pm Arcesium Global financial technology and professional services firm Arcesium has added several new professionals to its growing sales team focused on its institutional and alternative asset management segments. Brian Dalia joins as Senior Vice President to spearhead the sales efforts for its Institutional Asset Management (IAM) practice. Matt Weisman has also joined as Vice President on the IAM sales team after 10 years at Broadridge, and will work closely with Mr. Dalia on engaging and serving the IAM industry. Dalia has more than 20 years of experience in FinTech, with a focus on delivering for the middle- and back-office needs of institutional asset managers. Most recently, he headed North American Sales at SimCorp Coric.  Dalia previously led sales for North America for Bonaire Software, which was acquired by Broadridge in 2013. “I am excited to join Arcesium to help extend the firm’s offering, which is focused on solving asset managers’ most complex post-trade challenges, into the institutional asset management segment,” says Dalia. “With its flexible and robust technology and delivery models, Arcesium is well-positioned to address the needs of IAMs in the areas of enterprise data management, reconciliation, and IBOR.” Arcesium today supports more than USD455 billion in assets from a range of leading financial institutions, including hedge funds, banks, and fund administrators. Arcesium’s staff includes over 1,250 software development, accounting, operations, and treasury professionals worldwide. Separately, Arcesium hired Keith Raftery earlier this year as a Senior Vice President of Sales to focus on the alternative asset management space. Raftery joined Arcesium from Broadridge, where he was responsible for building and maintaining relationships with key influencers in the hedge fund ecosystem. Prior to that, Mr. Raftery worked at Credit Suisse Prime Brokerage for 11 years, where he held various roles in relationship management, sales, and hedge fund consulting. He also spent six years at ENSO Financial Analytics, where he was the Head of Sales for the Americas. “We are pleased to welcome Brian, Keith, and Matt to Arcesium. Their broad experience will allow us to extend our reach into new market segments and broader client types,” says David Nable, Head of Client and Partner Development. “They bring deep expertise in the institutional and alternative asset management segments and will play key roles in our growth efforts going forward.” Like this article? Sign up to our free newsletter Author Profile Tags Moves & Appointments Technology & software solutions

  • TNS now offering market data at Brazil's B3 exchange
    by clara.dijkstra on May 11, 2021 at 1:40 pm

    TNS now offering market data at Brazil's B3 exchange Submitted 11/05/2021 - 2:40pm Transaction Network Services (TNS) now offers traders access to market data at one of the world’s largest exchanges, B3, in Brazil. This new offering is the first Latin American exchange connection for TNS, which has comprehensive access to all the world’s major exchanges delivered globally over its low latency network. Read the full story at Institutional Asset Manager…   Like this article? Sign up to our free newsletter Tags Services Research & Analytics Trading & Execution

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