Opus Fund Services to acquire AlphaMetrix360
Opus Fund Services is to acquire AlphaMetrix360, the administration arm of the recently liquidated AlphaMetrix, it has been reported.
Reports have said AlphaMetrix360 will transition to Opus Fund Services before the New Year. These reports have added some staff will be retained, and that the court appointed corporate monitor and AlphaMetrix’s senior secured lender have approved the deal.
AlphaMetrix, a Chicago-based managed accounts platform, stunned the market in October 2013 when it admitted it was suffering from cash-flow issues. The Commodity Futures Trading Commission (CFTC) is alleging AlphaMetrix misappropriated $2.8 million of its pool participants’ cash. The CFTC has accused AlphaMetrix of agreeing to rebate fees to managers in its commodity pools by reinvesting the money into the pools, only to transfer the cash into bank accounts in the name of its parent company. AlphaMetrix has denied the allegations.
This is the latest AlphaMetrix business line to be acquired. In November 2013, Context Capital Partners, a Philadelphia-based seeding platform, took over the AlphaMetrix Events Management group, which organised the company’s high-profile conferences in Miami and Monaco. The renamed Context Summits has said it will seek to replicate the success and format of the AlphaMetrix conferences.
The entire episode has raised questions about the safety of boutique managed accounts platforms. A number of operational due diligence professionals have said the events at AlphaMetrix will lead to allocators and managers conducting greater operational due diligence on these providers.