Alpha Group Global Accounts for Emerging Managers
Gen II sat down with Sam Marsh, Managing Director of Alpha Group, to find out how the company is supporting Emerging Managers with its Global Accounts Solution.
High level, we’re providing funds with a faster and more reliable way of opening accounts for their investment structures. With us, an account opening process that would have taken months, will now typically take less than a week – and faster if circumstances require.
In theory yes, but the reality is more complicated. Growing AML and compliance demands, coupled with the complexity of a fund’s structure, has made it increasingly difficult for traditional banks to onboard investment entities in a timely and cost-effective manner. The result is significant friction and time delays for both client onboarding and processing transactions, and a service that is often not even commercially viable when considering the speed of execution needed by a GP.
Traditional banks are constrained by the size, breadth and diversity of their client base. Our offering on the other hand has been solely-built for alternative investments – all of our people, processes, policies and technology are entirely dedicated to this marketplace. As a result, we can onboard clients incredibly efficiently and in a highly controlled manner. We then combine these efficiencies with a global banking network that ensures that as our clients grow and expand their investments into new jurisdictions, they can continue to manage all of their accounts under one roof.
When we’re dealing with Emerging Managers, the main problem is that this isn’t an issue they’ve really encountered before. Most have come from larger funds where other people deal with these operational aspects. Suddenly they find themselves ready to open an account only for their banks to tell them it can’t be done. Often this is when a Service Provider (like Gen II) will put us in touch.
Our roots are in the area of currency risk management where we’ve been supporting funds and institutions for over a decade. The focus we have on the alternative investment market enabled us to identify the growing need for a global accounts solution, in the same way that we’ve also now expanded our offering to cover interest rate hedging and fund finance. We understand the complexities of the private capital market and the pace at which it operates.
Our approach has therefore been to provide clients with relevant and practical guidance that enables them to make informed decisions at speed. In practice this could range from helping clients explain to an investor why they made a decision not to hedge; writing a foreign currency share class strategy for a manager to attract new investors; or underwriting bespoke credit terms for a hedging facility that enables them to remain hedged without creating cash drag.
The best way to get in touch is by dropping us an email to institutional@alphagroup.com
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From here, an appropriate member of the team will get in touch to discuss your requirements further.
