GlobeOp Assets Rise As Firm Attracts New Clients

Oct 28 2009 | 3:57am ET

Things are looking up at hedge fund administrator GlobeOp Financial Services.

The firm’s assets under administration rose 20% in the third quarter, it said yesterday, thanks mostly to its addition of new clients. GlobeOp also said that the third quarter was the strongest of the year for subscriptions, while redemptions in the three-month period were the lowest of 2009.

All told, new clients added $13.1 billion to GlobeOp’s AuA during the quarter, almost all of it from one source.

“More than $12 billion of our increase in AuA relates to the addition of a new client with a significant portfolio of relatively illiquid assets,” Hans Hufschmid, CEO of GlobeOp, said. “The lower volume of processing, and hence pricing, of this new mandate differs from our traditional hedge fund-related clients, but it could be a landmark transaction as we further diversify into new markets and strengthen our position as a leading solutions provider to the evolving alternative asset servicing sector.”

Another $1 billion came from new funds launched by existing clients, while fund performance added another $4.2 billion. Subscriptions to existing funds totally $5.4 billion, while redemptions and terminations sapped $7.3 billion.

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