Citco First To Reach $1T AuA Milestone Through Organic Growth

January 30, 2019 - 02:09
Citco First To Reach $1T AuA Milestone Through Organic Growth

  • AuA has grown organically, withzero acquisitions
  • Private Capital, the largestgrowth area in recent years
  • Continued expansion into APAC


HONG KONG, CHINA - Media OutReach - 30 January 2019 - The Citco Group of Companies ("Citco"), a leading providerof asset servicing solutions to the global alternative investment industry,today announced that global assets under administration ("AuA") have hit the US$1 trillion mark. An important footnote to this achievement is that the milestonewas reached purely through organic growth, an industry first amongst alternativeasset service providers.


The growing drive to streamline operations is leading managers tooutsource more functions, including: front office risk reporting, middle officetreasury and collateral management, back office financial statements, and taxand regulatory reporting. Simultaneously, growing diversification across assetclasses, moves into hybrid strategies and the launch of a wide range ofinvestment vehicles will continue to translate into growing complexities forfund administration. Staying at the forefront of these developments has beenthe driver of Citco's investment in expanding internal talent and building outservice platform solutions, all with a view to ensure that clients have accessto the right tools in pivotal moments.


Citco's philosophy, dubbed the 'Citco Way', is a commitment toinvestment in the right people, and ensuring they are provided with the meansto succeed (e.g. investment in training and career management initiatives). Italso includes significant and sustained investment in proprietary technology.Citco's in-house team of technologists combine expertise in developingaward-winning technology products (Æxeo® Technology, Æxeo® Investor, CitcoOne®,Citco Waterfall™, CitcoConnect) with the latest advancements in cloud-basedtechnology, to produce commercially available software.  In November 2018,Citco launched Æxeo® Treasury, aninaugural "born-on-the-cloud" solution that gives alternative fund managers astate-of-art method of managing treasury functions through a SaaS tool runningon Amazon Web Services (AWS). Æxeo® Treasury enhances operational efficiencies and workflows, and provides asecure, centralized module for treasury operations. The combination of Citco'scommitment to service excellence and technology results in a "Fintech+"approach, which will continue to ensure that clients' interaction andinformation assets are safe and secure.


The Citco Way has provided an edge that will allow the company tostay at the forefront of industry innovation and provide clients with solutionsthat are both efficient and scalable. Citco's growth strategy, sustained byinvestment in proprietary technology, has enabled the firm to focus on buildingsolutions which center on the needs of its clients, as opposed to spending timetrying to integrate multiple cultures and platforms.


"As a private company focused on servicing alternative investmentfirms, and with the support of our ownership, the Smeets family -- who foundedthe business in 1948 -- we have been able to adopt a long-term mindset when itcomes to investing in our people and proprietary technology. We have leveragedthat support to form relationships with clients that span decades. Our abilityto deliver the right solutions in support of our clients' businesses andinvestors has been of paramount importance to our success story." said JayPeller, Head of Fund Services at Citco.


Peller also added, "As the regulatory framework increases incomplexity, and investors demand heightened levels of transparency frommanagers, we expect our clients to increasingly rely on Citco for front-to-backtechnology solutions that will allow them to focus on delivering outsizedreturns for their investors."


Citco currently operates across North America, Europe and Asia, withspecialized teams situated around the globe. Asia has been a strong driver ofgrowth for Citco, with AuA having grown 18% year to date across all lines ofbusiness. The growth is a direct result of increasing demand from Asianmanagers for Citco's proprietary technology and subject matter expertise, whoare looking towards the further institutionalization of their operations.


Citco is continually recognized and awarded as an industry leader --in just the past 12 months they have been awarded the following:


  • HFM US Hedge Fund ServicesAwards Winner 2018: Best administrator - Fund of hedge funds
  • HFM US Hedge Fund ServicesAwards Winner 2018: Best administrator - Best Treasury Management Solution
  • HFM European Services AwardsWinner 2018: Best administrator - over $30bn overall
  • The Drawdown Private EquityServices Awards Winner 2018: Fund administration (Innovation)
  • The Drawdown Private EquityServices Awards Winner 2018: Fund administration (Technology)


AboutCitco Group of Companies

The Citco Group of Companies is a worldwide network ofindependent financial service companies serving the world's elite hedge funds,private equity and real estate firms, institutional banks, Global 1000companies and high net worth individuals. Citco companies service these sectorsin their respective geographic areas by offering fund administration, custodyand fund trading, financial products and corporate and trust planningsolutions. Citco has offices in over 40 countries with more than 6,000 staff.