Family Office and Investment Manager - FoHF System Selection

Case Studies

Family Office and Investment Manager

Fund-of-Hedge-Fund System Selection

A system selection and implementation of a fund-of-hedge-fund system for a combined family office and investment manager.

Business Challenge

The client was in the process of offering their services to an external client base and needed to implement a robust fund-of-hedge-fund (FoHF) portfolio management solution to meet the increasing demands of the business and clients’ expectations for controls and risk management. The challenge was to identify and document the functions required to support portfolio management in a FoHF operating model and select and implement a system that met these requirements.

Solution Approach

The investments process for funds-of-hedge-funds is considerably different from that of equities, fixed income, derivatives or even non-hedge funds. To cater for this a complete suite of business process documentation was undertaken to accurately articulate the functions that required IT automation and to draw out the particular characteristics of the FoHF investments process.

Combining knowledge of investment systems with a targeted market survey a number of specialist-FoHF systems were identified, which were benchmarked against the requirements identified during the process documentation phase. Further selection activities included vendor solution demonstrations and a pilot implementation before the final solution was agreed.

A joint team comprising vendor professional services and client staff managed and complemented by members of the Knadel team completed the implementation.

Value

The team brought knowledge of the portfolio management systems market and were able to narrow the field of systems under consideration very early in the process circumventing a long RFI process. Understanding the client’s business model and requirements we were able to contribute to the selection process as well as tailor it to the particular needs of the client.

For the implementation we were able to provide a resource that could cover project management, supplier liaison, business analysis and implementation consultant in a single role thus meeting the client’s budget requirements.

Outcome and Business Benefit

The project was completed successfully with the client live on the right system to budget and deadline. The client was able to migrate from bespoke investment records with limited functionality to a fully vendor-supported, functionally rich portfolio management system.

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