AlphaOne Positioned for Growth by Outsourcing Middle- and Back-Office Functions
AlphaOne Capital Partners is a money management firm with investment offices in Pennsylvania and Massachusetts, specializing in alternative and equity investments for institutional and high-net-worth investors.
When it wanted to grow to become a multi-asset-class investment management company, AlphaOne knew it meant focusing efforts on:
- Acquiring multiple portfolio management teams to bring in desirable investment styles and assets
- Servicing their clients
- Managing and integrating their acquisitions
- Identifying future opportunities
Building or buying an operational infrastructure while simultaneously supporting those efforts simply wasn’t feasible – AlphaOne’s management team needed a partner to handle its middle- and back-office functions. One that would put them in a position to capitalize on future opportunities and growth demands.
Partnering for success
To create the best middle- and back-office outsourcing option, AlphaOne and SEI worked closely for several months to:
- Understand business requirements
- Define processes
- Participate in due diligence meetings
SEI demonstrated in advance what it would bring to the relationship as AlphaOne’s partner, and showed how a world-class infrastructure would support AlphaOne’s business strategy.
A platform that accommodates growth
“As we went through the process, it was clear that no one could compare with SEI’s ability to integrate best-of-class systems into one seamless infrastructure that can scale with the changing needs of our business,” said AlphaOne’s COO.
In addition to SEI’s 30 years of experience providing investment managers with outsourcing solutions and expertise in servicing a wide variety of investment vehicles, AlphaOne was impressed with SEI’s solutions, which provide:
- The ability to aggregate data across the middle- and back-office functions with SEI’s Manager Dashboard, an online reporting system
- Greater detail and flexibility in creating and managing reports
- A single order management platform for hedge fund and institutional account trades
- Support for multiple data links, enabling portfolio managers to use their analytical tool of choice
- A platform that scales to a wide variety of asset classes or products, for incremental as well as explosive new business growth
SEI is able to meet AlphaOne’s current requirements and allow the firm to seamlessly integrate future acquisitions into its infrastructure as it continues to grow. And as increasingly sophisticated products and strategies emerge, SEI has the personnel, knowledge, and infrastructure in place to support them.
Operational infrastructure reaps rewards
The initial conversion process included AlphaOne’s small and micro-cap investment manager acquisitions. Since that time, the firm has continued to grow, adding top quality investment teams and client assets to its infrastructure, and now oversees more than $350 million in assets for a variety of institutional and high-net-worth investors.
By virtue of its strategic partnership with SEI, AlphaOne enjoys these benefits:
- Holistic, integrated view of data management, performance and risk reporting – Data warehousing and state-of-the-art reporting offer management and investors alike daily reporting. Investment managers gain insight to enable better decision making.
- New levels of order management flexibility – Order completion in seconds, plus easy replacement of an order prior to cutoff times and access to historical records.
- Daily cash and position reconciliations with custodians – Automated workflow tools notify AlphaOne about the assets they can trade prior to the market open.
- Improved trade execution and speed to market – Direct trading access to 60+ brokers, all handled electronically, saves time, reduces risk and creates greater efficiencies.
- Assistance in meeting regulatory guidelines – A comprehensive Form PF solution leverages existing infrastructure to ease the burden of aggregating the 2000+ data point requirements.
- Support for compliance obligations for internal or external audits – Electronic audit trails of the daily reconciliation of positions and cash between the manager’s and the custodian’s books and records.
- Full business continuity and disaster recovery – From isolated events to catastrophic disasters requiring recovery at an alternate site.