Advent presented these events in response to increasing industry interest in the multi-prime approach. Funds of $1 billion or more often diversify their prime brokerage relationships, both to mitigate risk as well as to take advantage of specialized services and capabilities. Due to recent market conditions, funds as small as $100 million are looking at ways to mitigate risk through a multi-prime approach. The Advent events were designed to explain why more funds are moving to the multi-prime model and what it requires in the way of infrastructure and technology.
According to event panelists with multi-prime experience, the critical component for success is the ability to aggregate data from multiple sources and different formats into a single reporting platform. Adventâs GenevaÂ® global portfolio management and accounting platform is an example of a solution that can help firms make the transition to a multi-prime environment, with consolidated reporting across all asset classes and counterparties.
âThe response to these events and our webinar shows that fund managers are eager to hear about the multi-prime model,â said Chris Momsen, Senior Vice President and Co-Head of Global Accounts at Advent, who moderated the live discussions. âWe were fortunate to bring together some high-level industry experts to provide valuable insights and advice. And with GenevaÂ®, Advent can also make it easier for firms to adopt a multi-prime approach, a model which ultimately enables firms to be more efficient.â
Momsen cited the example of a multi-billion dollar global hedge fund that recently implemented GenevaÂ®. âBefore, they had one employee dedicated full time to reconciling margin account balances across multiple prime brokers, and it took four employees to keep data in synch between the front-, middle-, and back-office systems,â he said. âNow, with GenevaÂ®, theyâve eliminated the data latency issues that arise from having data scattered among different systems, and now those four employees are able to focus on more value added tasks.â
GenevaÂ® is specifically designed for managing complex global fund strategies involving multiple asset classes and currencies. It is the core portfolio management solution for more than 175 firms worldwide, including global asset managers, hedge funds, fund administrators and prime brokers.