As published in the European Service Provider Insights 2021
The position of hedge funds in the market will be further strengthened as market intelligence shows investors most likely will be increasing their allocation to these funds. "This sentiment has been made evident through the new fund launches and investment allocations to existing funds since the latter part of 2020,” Richard Murray, global head of hedge, Sanne.
Reflecting on the journey of the past year, Murray notes that from a commercial perspective, new fund launch activity was subdued in Q2 and Q3 2020: "Managers and investors were assessing the situation before progressing with new ventures. We saw increased launch activity and planning from Q4 2020, which has continued into 2021. The key element of our business is remaining focused on delivering the best service we can to our existing clients, with the past year being no exception." Innovation and growth are critical factors which Sanne values.
Everything we do needs to be aligned with our clients current and developing strategic needs. As part of this we have a very clear data strategy that positions us well to meet increasing client reporting needs and more seamless delivery across asset classes and service disciplines.”
"We continue to work internally to ensure we are seeking efficiencies and polishing our client outputs, through optimising the use of our technology suite and empowering our people with the tools to have ever increasingly meaningful interactions with our clients."
"In terms of growth, we believe we have a compelling value proposition for our clients and prospects, which is a strong support for their service needs and we want to grow the number of clients we support", Murray observes.
Sanne refined its global hedge proposition nearly three years ago with the intention of broadening its footprint, complementing the firm’s existing strength in servicing closed ended fund private equity, real asset and private debt strategies. As a focused alternative fund service provider it was key to align Sanne fully with alternative managers and investors that operate across the various alternative asset classes.
Murray observes: “Most of the change in our hedge business over the past year have been at an operational level realising this growth strategy. In Europe we bolstered our Dublin operation through acquisition. This brought a very experienced and skilled team, along with a high-quality client book. We also established a Cayman Islands operation through a pair of acquisitions."
"It is important to have a presence on the ground in this key global hedge fund jurisdiction. Along with the quality people, this addition to our business has enhanced our credentials and our ability to more broadly service our European and global client base."
In providing its service, the firm is keenly aware that hedge fund managers sit across numerous locations globally and often operate in more than one, as a fund business and in where they domicile their funds. Therefore, it is important to provide clients with a consistent service experience on a global platform, which also adapts to local market practice or nuance.