Viteos announced today that Capricorn Fund Managers (Capricorn or the "Manager"), a Johannesburg and London based hedge fund manager, has selected Viteos for a complete middle office services solution on a co-sourcing model.
Capricorn had earlier outsourced its Fund Administration and Middle Office services to BNY Mellon Investment Servicing (International) Limited (BONY). As part of a periodic strategic review, Capricorn initiated an RFP and selection process, separating its middle office provider and fund administrator.
Capricorn looked for its Middle Office provider to:
· Retain Linedata Beauchamp as its portfolio management system which had the entire history for all the funds (earlier provided by BONY)
· Put in a structure where middle office was independent of the fund administrator
· Select a credible supplier who could transition the middle office process and collaborate with Linedata, BONY, and Capricorn
· Provide an institutional level middle office capability, working with multiple fund administrators, thereby ensuring scalability, wider asset class coverage and support based in London and Johannesburg.
Capricorn decided to opt for a co-sourcing model, where the technology and data is owned and retained by the Manager with the middle office outsourced to Viteos. The unique structure and engagement model gives Capricorn control and oversight on its data and de-risks any cash, positions and trade breaks, which are reconciled and resolved between PB(s), Fund(s), Fund admin(s) and middle office daily by Viteos.
The transition of the middle office process from BONY to Viteos was actively supported by the Linedata team in London, which helped in setting up the new license with all the existing interface, reports and fund set-up - along with historical data migration. The data and process migration including testing was completed over 4 weeks, with Capricorn going live, in advance of the existing service with BONY ending on 31st December 2014. Capricorn, along with Viteos Fund Services and Linedata, has successfully demonstrated a smooth, quick and complete transition of its fund administration and middle office services in less than 30 days.
Ranjan Mishra, Regional Head for Viteos Fund Services in EMEA said: “The clear planning and strategic thinking shown by Capricorn has enabled a new engagement model with more control and oversight by Capricorn along with greater asset class coverage and scalability - with inbuilt process control between Viteos, Prime Brokers, and Fund Administrators. The arrangement makes Capricorn Capital a truly world class hedge fund institutional set-up, in infrastructure and process. Viteos is also speaking to similar managers who are evaluating similar services and facing challenges to migrate its middle office in fewer than 90 days.”
Douglas Stott, Head of operations, Capricorn Fund Managers stated: “The new set-up gives us an edge with no impact on data and our portfolio management system, thanks to collaboration between the Capricorn, Viteos and Linedata.”