Convergence data shows alternative industry growing but productivity faltering

Buy-Side FeaturesFund AdministrationLaunchesOperations
09 May, 2016

Convergence Inc., the Connecticut-based data, analytics and surveillance platform for the alternative investment management industry, has published a summary of the insights it has derived from its analysis of regulatory filing and other public sources of information about the industry.

The key insights include:

  • Net of fund closures, the number of hedge and private equity funds is growing
  • The number of people working in the industry is up (especially in the middle and back office, where regulatory and investor demands have the largest impact)
  • Growth in middle and back office roles is hampering productivity
  • Consolidation of prime brokers, fund administrators and custodians is set to accelerate
  • The domination of industry audit by the Big Four firms is now at 86 per cent of assets, despite their shedding of smaller and riskier clients
  • Self-administration is declining but still widespread: in terms of AuM it eclipses the largest single administrator

The company, which was founded in 2013 by John Phinney (formerly at Apollo Funds) and George Evans (formerly at GlobeOp), is growing fast. It expects to have 100 clients - which buy data from the company on subscription - by the end of the year.

A copy of the report, can be accessed by clicking here.

Fund Management