eVestment: Alternative Assets Under Administration Up 14% in 2016

Apr 27 2017 | 11:22pm ET

Alternative assets under administration jumped more than 14% last year to reach $7.64 trillion, according to a new survey from industry data provider eVestment. 

A continued shift towards third-party administration by private equity and real asset fund managers was the primary driver of the 2016 surge, eVestment noted in the report, while PE continues to be seen as the area with the strongest anticipated growth going forward. 

Other interesting points from the survey: 

  • Nearly 48% of respondents expect net firm exits from the fund administration space as M&A activity in the space continues, while 26.3% of respondents expect net entries into the business and 10.5% of respondents held a neutral view of entries/exits.
  • M&A in the fund administration industry was robust in the past year and is expected to continue. The need for broader geographic footprints and for expanding product expertise drove much of the activity.
  • North America ranked highest for anticipated business growth in the 2017 survey, as it did in the 2016 survey. Europe, Asia Pacific and Latin America held rankings similar to last year’s edition of the report, although respondents to the survey were less positive about growth in the European fund administration space than they were previously.
  • SS&C GlobeOp ranked first among firms, with total alternative assets under administration of $1.32 trillion as of Dec. 31, followed by State Street Alternative Investment Services at $1.25 trillion and Citco Fund Services at $1.05 trillion. SS&C’s tally was boosted by several acquisitions last year.
  • Private equity fund AUA rose a whopping 44% last year, to $2.163 trillion. Hedge fund AUA, meanwhile, rose 5.2% to $3.923 trillion across 12,482 funds, while fund of hedge fund AUA declined to $810 billion across 3,296 funds. 

The information was contained in eVestment’s 17th Annual Alternative Fund Administration survey, which represents the current state of the global alternative investment fund administration industry and includes information from firms across the spectrum of size and services offered. The 2017 survey is based on responses collected at the end of 2016.

Atlanta-based eVestment was founded in 2000 by Jim Minnick, Matt Crisp and Heath Wilson. The company boasts one of the largest, most comprehensive global databases of traditional and alternative strategies and provides institutional investment data intelligence and analytic solutions to clients worldwide.

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