[ U P D AT E ]
F
Private equity
fund admins
witness fastest
growth in 2017
PRIVATE EQUITY ASSETS
UNDER ADMINISTRATION
INCREASED 18% TO $2.5 TRIL-
LION OVER 2017, MORE THAN
HEDGE FUND, FUND OF FUNDS
AND REAL ESTATE ASSETS.
8
Global Custodian
und administrators serving private equity
and debt managers recorded the highest
growth among alternative investment ser-
vice providers, according new research from
eVestment.
Private equity assets under administra-
tion increased 18% to $2.5 trillion over 2017,
more than hedge fund, fund of funds and
real estate assets.
“Private, less liquid investments inclusive
of [real estate], together with private credit
strategies keep attracting significant insti-
tutional assets given relative differentiated
returns vs. other alternative asset strate-
gies,” said one global mid-sized administra-
tor in the survey.
“Accordingly, fund administration opportu-
nities will align with capital flows and with
firms that have not necessarily historically
outsourced.”
SS&C GlobeOp remained the top adminis-
trator for private equity funds with $573 bil-
lion under administration, up 27%. Second
Private Equity Issue 2018
was State Street with $350 billion, however
its private equity assets under administra-
tion declined 6%.
In its fourth quarter earnings, SS&C stated
its fund administration business grew 12%
in the following a larger number of private
equity and real estate mandates, with
private equity and real estate making up a
third of its total $1.5 trillion assets under
administration.
Meanwhile real estate assets under ad-
ministration 17% to $691 billion, the second
fastest alternative asset class for fund
administrators, while hedge funds achieved
growth of 13% to $4.21 trillion.
The hedge fund administrators that
achieved the most notable growth included
Apex Fund Services, up 124% to $59 billion
(the figures excluded the assets under ad-
ministration for Deutsche Bank Alternative
Fund Services and M.M Warburg which Apex
acquired last year), and US Bancorp, up 99%
to $189 billion.