EFSI’s Post

📰 The Current Buzz in Fund Management - Fund investors and managers looking for opportunity—and success—in today’s environment should be mindful of these 5️⃣ tips. Read more ➡️ https://rpb.li/PoLa #fundmanagement #news #tips

Finding the right partners to support a fund platform is crucial for fund managers, and they are increasingly turning to third-party fund administrators to support them. Here are three key considerations when choosing a fund administrator: https://okt.to/7Fxe12 #fundadministrator #realestate #fundmanager

The dawn of hybrid fund structures! The investment management industry stands at the threshold of a transformative era, with the evolution towards hybrid mutual fund/ETF structures marking a pivotal shift in strategic institutional asset management. Read on as Aisha Hunt, Principal, Kelley Hunt PLLC, explores this further >> http://spr.ly/6049whmk1 Catch Aisha on stage at Wealth Management EDGE as she will delve into the market outlook for the year ahead. Find out more here: http://spr.ly/6042whmky #WMEDGE #InsideETFs+ #ETFs #hybridfunds

𝐂𝐚𝐫𝐫𝐢𝐞𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐢𝐧 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐚𝐧𝐝 𝐇𝐞𝐝𝐠𝐞 𝐅𝐮𝐧𝐝𝐬 Carried Interest represents a share of profits allocated to General Partners (GPs) in Private Equity and Hedge Funds, serving as a key incentive mechanism. 𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 𝑰𝒏𝒄𝒆𝒏𝒕𝒊𝒗𝒆: Carried Interest acts as a performance or incentive fee, rewarding GPs for their role in generating returns for investors. Unlike the annual management fee, carried interest is earned only when the fund achieves a pre-agreed rate of return, aligning the interests of GPs with those of investors. 𝑴𝒐𝒕𝒊𝒗𝒂𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆: By tying a portion of compensation to fund performance, carried interest motivates fund managers to diligently work towards maximizing returns for investors. This fosters a culture of diligence and strategic decision-making within fund management teams. 𝑷𝒓𝒐𝒇𝒊𝒕 𝑺𝒉𝒂𝒓𝒊𝒏𝒈 𝑫𝒚𝒏𝒂𝒎𝒊𝒄𝒔: Typically, profits in Private Equity and Hedge Funds are shared between GPs and Limited Partners (LPs) in a predetermined ratio. The common split is 20:80, with GPs receiving 20% of profits, while the remaining 80% is distributed to LPs. 𝑾𝒂𝒕𝒆𝒓𝒇𝒂𝒍𝒍 𝑴𝒆𝒕𝒉𝒐𝒅𝒔: Various methods, such as the European Waterfall and American Waterfall, dictate how profits are distributed among stakeholders. These methods outline the hierarchy of cash flow distribution within fund structures, ensuring clarity and fairness in profit sharing. 𝑯𝒊𝒆𝒓𝒂𝒓𝒄𝒉𝒚 𝒐𝒇 𝑪𝒂𝒔𝒉 𝑭𝒍𝒐𝒘 𝑫𝒊𝒔𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏: While specific provisions and terms may vary between funds, a typical hierarchy of cash flow distribution includes: i) Principal Amount/Total Investment ii) Preferred Return/Minimum Return iii) Catch-up iv) Carried Interest v) Profits to Investors E̳x̳a̳m̳p̳l̳e̳:̳ Imagine a Private Equity Fund where the General Partners charge a 2% annual management fee. Additionally, they are entitled to 20% carried interest if the fund achieves a pre-agreed rate of return, say 10% per annum. If the fund surpasses the preferred return threshold and generates profits, the profits will be distributed according to the waterfall provisions. The GPs would first receive their 2% management fee. Subsequently, investors would receive their preferred return. Once these obligations are met, the GPs would then be entitled to their share of the profits as carried interest, motivating them to drive further growth and success for the fund. Image credit: Napkin Finance #JPMorgan #MorganStanley #CreditSuisse #GoldmanSachs #axa #anz #wns #bnymellon #citco #citibank #deutschebank #fis #jpmorganchase #imarticuslearning #northerntrust #statestreet #wellsfargo #operations #mumbai #delhi #chennai #bengaluru #pune #investment #help #career #job #opportunites #InvestmentBanking #FinanceInterviews #interviews #InvestmentBanking 𝐅𝐨𝐥𝐥𝐨𝐰 𝐦𝐞 (Siddharrth Mehta) 𝐅𝐨𝐫 𝐬𝐮𝐜𝐡 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐑𝐞𝐩𝐨𝐬𝐭 𝐈𝐟 𝐲𝐨𝐮 𝐟𝐨𝐮𝐧𝐝 𝐢𝐭 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐟𝐮𝐥

The private equity landscape is undergoing significant changes, from regulatory demands to technological advancements. Fund administration is evolving to meet these challenges head-on.    Read insights from Vistra on the shifting dynamics and the keys to effective fund administration. https://lnkd.in/eTqjfJ-n   #PrivateEquity #FundAdministration

A great insight from further up the value chain (investors), and a trend that continues to grow. We as Fund Service providers need to be ready (we are) to support this model along side the traditional closed ended model. Long live the hybrid fund!

Is there still room for personality in asset management? Or have star fund managers had their day? How effective are they in the #networkedage? I delve into the issue in our latest blog: https://lnkd.in/ej9SSyuU

We are thrilled to announce the official launch of Grey Street Partners (GSP) to the broader investment community. Our newly launched website provides detailed insights into our investment philosophy, processes, and the funds we manage, including the GSP Global Growth Fund, GSP Global Hedge Fund, and GSP Global Growth Managed Portfolio, which is available on the Mason Stevens Wealth Platform. As global growth fund managers, we are entering a dynamic and uncertain phase, characterized by the conclusion of a tightening credit cycle, escalating geopolitical tensions, polarized economic policies, the ongoing conflict in Europe and the Middle East, persistent inflationary pressures, and more. Despite these challenges, the investment themes we are currently focused on continue to show strong growth potential, remaining in the upward phase of the S-curve. Our priority now is to identify new thematic opportunities at the early stages of their growth trajectory, positioning us to capitalize on their long-term potential. For more information about our firm and our strategies, please visit our website or contact your financial adviser directly. https://lnkd.in/g4MuHnzD

In his latest article, Mark Pearce demystifies the often-discussed basis trading strategy, common amongst #relativevalue investors, and highlights some of the key differences between Ardea Investment Management’s regulated fixed income strategy and relative value hedge funds. Click here to find out more https://lnkd.in/e4Eangeb

We recommend this fascinating backgrounder on mutual fund/ETF dual shares and where they're headed next. It includes bonus info on the expiration of a Vanguard patent last year. #TheMoreYouKnow #MarginMasters #FinTech