Lighthouse Partners, a fund of hedge funds with more than $6 billion in assets under management, will expand its partnership with GlobeOp Financial Services to a full-service fund administration relationship for all Lighthouse products.
GlobeOp, a leading independent provider of business process outsourcing, financial technology services and analytics to the buy-side, already provides middle-, back-office and risk management support for the Lighthouse proprietary managed account program.
More than 20 professionals from the Lighthouse operations team in Florida will work jointly with approximately 85 GlobeOp counterparts in Connecticut, New York State and Mumbai, India to deliver "around the clock" post-trade processing for more than 60 managed accounts and five funds. GlobeOp's financial technology and scalable human resources will complement Lighthouse's investment and operational processes, providing highly automated processing and reporting solutions designed to reduce operational risk and increase overall efficiency and transparency.
"After our managed account program and operations team integrated successfully with the GlobeOp middle- and back-office, it was a comfortable, natural next step to upgrade to a full-service relationship," said Rob Swan, chief operating officer at Lighthouse. "We now anticipate GlobeOp's technology and business process innovations will add value through position-level transparency, operational controls, independent valuations and integrated risk reporting. That each is audited to SAS 70 Type ll standards is important to our fund managers and investors alike."
"During the past three and half years Lighthouse has strategically converted from the standard fund of fund model to a managed account model that we believe will be the future of hedge fund investing," said Sean McGould, Lighthouse president and co-chief investment officer. "Our team has developed strong portfolio and risk management skills over the last 15 years. Combining that expertise with managed account investing is already providing the increased transparency and risk reporting required by institutional investors."
Rob Swan added that the long-term, continued growth of the Lighthouse program required an established partner to effectively handle post-trade processing, administration and reporting. "GlobeOp most effectively met our criteria for scalable and efficient processing of increasing trade volumes.
Underlying Lighthouse managers already greatly benefit from the integration with GlobeOp's comprehensive, web-based middle- and back- office trade processing services. This partnership also provides our fund managers and investors with the increased independence, timeliness and transparency they require."
"We are pleased to be strengthening our relationship with Lighthouse Partners to provide full fund administration services," said Vernon Barback, GlobeOp president and chief operating officer. "As they continue to strategically expand managed accounts, we look forward to underpinning their fund managers with a robust infrastructure and flexible services. GlobeOp's continuous investments in people, processes and technology are designed to provide clients like Lighthouse Partners with quality services and a long-term competitive advantage."