Preqin Special Report: Hedge Fund Service Providers May 2017 Data Pack

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Fig. 1: Top 10 Fund Administrators Servicing Hedge Funds

Firm No. of Known Hedge Funds Serviced

SS&C GlobeOp 1,512
Citco Fund Services 1,304
State Street (International Fund 1,083
Services)
BNY Mellon 553
Morgan Stanley Fund Services 495
Northern Trust Fund 452
Administration
HedgeServ 361
MUFG Investor Services 344
ALPS 296
NAV Consulting 284
Source: Preqin

Fig. 2: Top Five Fund Administrators by Proportion of Hedge Fund Launches Serviced, 2016 - Q1 2017

Proportion of Hedge Fund Launches

Firm Serviced,2016 - Q1 2017
SS&C GlobeOp 19%
Citco Fund Services 13%
State Street (International Fund 7%
Services)
Morgan Stanley Fund Services 5%
Northern Trust Fund 4%
Administration
Source: Preqin

Fig. 3: Most Utilized Fund Administrators by Hedge Fund Assets under Management

Less than $50mn $50-99mn

BNY Mellon SS&C GlobeOp

SS&C GlobeOp BNY Mellon

State Street (International Fund

NAV Consulting Services)

Apex Fund Services Citco Fund Services

State Street (International Fund Northern Trust Fund Administration

Services)

Fig. 4: Most Utilized Fund Administrators by Hedge Fund Manager Location

North America Europe

 SS&C GlobeOp Citco Fund Services
State Street (International Fund
Citco Fund Services Services)
State Street (International Fund SS&C GlobeOp
Services)
Morgan Stanley Fund Services BNY Mellon
HedgeServ Northern Trust Fund Administration
und Launches Serviced, 2016 - Q1 2017

ts under Management

$100-249mn $250-499mn

SS&C GlobeOp SS&C GlobeOp

State Street (International Fund Services) Citco Fund Services

BNY Mellon State Street (International Fund Services)

Citco Fund Services BNY Mellon

Northern Trust Fund Administration Northern Trust Fund Administration

ager Location

Asia-Pacific Rest of World

 Citco Fund Services BNY Mellon

HSBC Securities Services Investment Data Services

State Street (International Fund Services) Maitland

Apex Fund Services Banco Bradesco

SS&C GlobeOp Credit Suisse Prime Fund Services
Source: Preqin
 $500-999mn $1bn or More
State Street (International Fund
Citco Fund Services Services)

SS&C GlobeOp Citco Fund Services

BNY Mellon JP Morgan Fund Services

State Street (International Fund SS&C GlobeOp

Services)

Northern Trust Fund Administration BNY Mellon

Source: Preqin
Fig. 5: Top 10 Fund Custodians Servicing Hedge Funds

Firm No. of Known Hedge Funds Serviced

Goldman Sachs 2,999
J.P. Morgan 2,781
Morgan Stanley 2,424
BNY Mellon 1,740
Deutsche Bank 1,255

1,245
Credit Suisse Prime Fund Services
Bank of America Merrill Lynch 1,185
UBS 1,165
State Street Custody Services 1,162
Citi Transaction Services 1,129
Source: Preqin

Fig. 6: Top Five Fund Custodians by Proportion of Hedge Fund Launches Serviced, 2016 - Q1 2017

Proportion of Hedge Fund Launches

Firm Serviced, 2016 - Q1 2017
Goldman Sachs 22%
Morgan Stanley 21%
J.P. Morgan 18%
Northern Trust Custody Services 12%
BNY Mellon 10%
Source: Preqin

Fig. 7: Most Utilized Fund Custodians by Hedge Fund Assets under Management

Less than $50mn $50-99mn

Goldman Sachs Goldman Sachs
J.P. Morgan J.P. Morgan
Interactive Brokers Morgan Stanley
Morgan Stanley UBS
BNY Mellon BNY Mellon

Fig. 8: Most Utilized Fund Custodians by Hedge Fund Manager Location

North America Europe

Goldman Sachs Morgan Stanley
J.P. Morgan UBS
Morgan Stanley J.P. Morgan
BNY Mellon BNY Mellon
Northern Trust Custody Services Goldman Sachs
Launches Serviced, 2016 - Q1 2017

nder Management

$100-249mn $250-499mn
J.P. Morgan Goldman Sachs
Goldman Sachs J.P. Morgan
Morgan Stanley Morgan Stanley
BNY Mellon BNY Mellon
Citi Transaction Services Credit Suisse Prime Fund Services

Asia-Pacific Rest of World

Morgan Stanley Banco Bradesco
Goldman Sachs BNY Mellon
Deutsche Bank Banco Itau
UBS Morgan Stanley
Citi Transaction Services Goldman Sachs
Source: Preqin
 $500-999mn $1bn or More
J.P. Morgan J.P. Morgan
Goldman Sachs BNY Mellon
Morgan Stanley Goldman Sachs
BNY Mellon Morgan Stanley
State Street Custody Services State Street Custody Services
Source: Preqin
Fig. 9: Top 10 Prime Brokers Servicing Hedge Funds

Firm No. of Known Hedge Funds Serviced

Goldman Sachs 3,051

Morgan Stanley Prime Brokerage 2,712
J.P. Morgan 1,968
Credit Suisse Prime Fund Services 1,306
UBS Prime Services 1,105
Deutsche Bank Global Prime 1,111
Finance
Bank of America Merrill Lynch 929
Citi Prime Finance 679
Barclays 599
Interactive Brokers 588
Source: Preqin

Fig. 10: Top Five Prime Brokers by Proportion of Hedge Fund Launches Serviced, 2016 - Q1 2017

Proportion of Hedge Fund Launches

Firm Serviced, 2017 - Q1 2017
Goldman Sachs 30%

Morgan Stanley Prime Brokerage 30%

J.P. Morgan 19%

Interactive Brokers 12%
UBS Prime Services 11%
Source: Preqin

Fig. 11: Most Utilized Prime Brokers by Hedge Fund Assets under Management

Less than $50mn $50-99mn

Goldman Sachs Goldman Sachs
Interactive Brokers Morgan Stanley Prime Brokerage

Morgan Stanley Prime Brokerage J.P. Morgan

J.P. Morgan Credit Suisse Prime Fund Services

Deutsche Bank Global Prime UBS Prime Services

Finance

Fig. 12: Most Utilized Prime Brokers by Hedge Fund Manager Location
 North America Europe
Goldman Sachs Morgan Stanley Prime Brokerage

Morgan Stanley Prime Brokerage UBS Prime Services

J.P. Morgan Goldman Sachs

Credit Suisse Prime Fund Services Credit Suisse Prime Fund Services

Deutsche Bank Global Prime J.P. Morgan

Finance
aunches Serviced, 2016 - Q1 2017

der Management

$100-249mn $250-499mn
Goldman Sachs Goldman Sachs
Morgan Stanley Prime Brokerage Morgan Stanley Prime Brokerage

J.P. Morgan J.P. Morgan

UBS Prime Services Credit Suisse Prime Fund Services

Credit Suisse Prime Fund Services Deutsche Bank Global Prime Finance
 Asia-Pacific Rest of World
Morgan Stanley Prime Brokerage Morgan Stanley Prime Brokerage

Goldman Sachs Goldman Sachs

UBS Prime Services Credit Suisse Prime Fund Services

Deutsche Bank Global Prime Finance Peregrine Securities

Credit Suisse Prime Fund Services Rand Merchant Bank

Source: Preqin
 $500-999mn $1bn or More
Goldman Sachs Goldman Sachs
Morgan Stanley Prime Brokerage J.P. Morgan

J.P. Morgan Morgan Stanley Prime Brokerage

Deutsche Bank Global Prime Finance Credit Suisse Prime Fund Services

Credit Suisse Prime Fund Services Deutsche Bank Global Prime Finance

Source: Preqin
Fig. 13: Top 10 Fund Auditors Servicing Hedge Funds

Firm Name No. of Known Hedge Funds Serviced

KPMG 2,895
EY 2,636
PricewaterhouseCoopers 2,606
Deloitte 1,409
RSM 485
EisnerAmper 407
Grant Thornton 328
BDO 310
Spicer Jeffries 193
Arthur Bell, Certified Public 136
Accountants
Source: Preqin

Fig. 14: Top Five Fund Auditors by Proportion of Hedge Fund Launches Serviced, 2016 - Q1 2017

Proportion of Hedge Fund Launches

Firm Name Serviced, 2016 - Q1 2017
KPMG 24%
EY 23%
PricewaterhouseCoopers 19%
Deloitte 12%
EisnerAmper 2%
Source: Preqin

Fig. 15: Market Share of Leading Fund Auditors by Fund Size

Firm Name Less than $50mn

Deloitte 11%
EY 14%
KPMG 25%
PricewaterhouseCoopers 18%
Fig. 16 Market Share of Leading Fund Auditors by Fund Manager Location

Firm Name North America

Deloitte 10%
EY 19%
KPMG 25%
PricewaterhouseCoopers 18%
aunches Serviced, 2016 - Q1 2017

$50-99mn $100-249mn
12% 11%
19% 22%
26% 24%
22% 21%
ger Location

Europe Asia-Pacific
18% 7%
24% 39%
20% 12%
28% 31%
$250-499mn $500-999mn $1bn or More
15% 10% 11%
22% 25% 32%
24% 27% 15%
25% 28% 35%
Rest of World
10%
17%
Fig. 16 Market Share of L
42%
24%

Rest of World 10% 17%

As i a-Pacific 7% 39%

Europe 18% 24%

North America 10% 19%

0% 10% 20% 30%

North America 10% 19%

0% 10% 20% 30%

Proporton

Del oi tte
 Fig. 15: Market Share of Leading Fund Auditors by Fund Si

$1bn or More 11% 32% 15%

$500-999mn 10% 25% 27%

$250-499mn 15% 22% 24%

$100-249mn 11% 22% 24% 21%

 $250-499mn 15% 22% 24%

$100-249mn 11% 22% 24% 21%

$50-99mn 12% 19% 26% 22%

Les s than $50mn 11% 14% 25% 18%

0% 10% 20% 30% 40% 50% 60% 70

Proportion of Funds Using a Big Four Auditor

Del oi tte EY KPMG Pri cewaterhous eCoopers

6 Market Share of Leading Fund Auditors by Fund Manager Location

42% 24%

39% 12% 31%

24% 20% 28%

25% 18%

30% 40% 50% 60% 70% 80% 90% 100%

 25% 18%

30% 40% 50% 60% 70% 80% 90% 100%

Proporton of Funds Using a Big Four Auditor

Del oi tte EY KPMG Pri cewaterhous eCoopers Source: Preqin

Auditors by Fund Size

35%

28%

25%

21%
 25%

21%

22%

18%

60% 70% 80% 90% 100%

ur Auditor

hous eCoopers Source: Preqin

0% 100%
0% 100%

Source: Preqin
Fig. 17: Top 10 Law Firms Servicing Hedge Funds

Firm No. of Known Hedge Funds Serviced

Maples & Calder 485
Seward & Kissel 364
Schulte Roth & Zabel 271
Walkers 266
Sidley Austin 174
Ogier 167
Akin Gump Strauss Hauer & Feld 136
Dechert 104
Simmons & Simmons 103
Arendt & Medernach 92
Source: Preqin

Fig. 18: Top Five Law Firms by Proportion of Hedge Fund Launches Serviced, 2016 - Q1 2017

Proportion of Hedge Fund Launches

Firm Serviced, 2016 - Q1 2017
Maples & Calder 11%
Schulte Roth & Zabel 8%
Walkers 7%

Akin Gump Strauss Hauer & Feld 6%

Dillon Eustace 5%
Source: Preqin

Fig. 19: Top 10 Law Firms Servicing Onshore Hedge Funds

Firm Headquarters

Seward & Kissel US

Arendt & Medernach Luxembourg
Schulte Roth & Zabel US
Elvinger, Hoss & Prussen Luxembourg

Akin Gump Strauss Hauer & Feld US

Sidley Austin US
Maples & Calder Cayman Islands
Linklaters UK
Sadis & Goldberg US
Cole-Frieman & Mallon US

Fig. 20: Top 10 Law Firms Servicing Offshore Hedge Funds

Firm Headquarters

Maples & Calder Cayman Islands

Walkers Cayman Islands
Schulte Roth & Zabel US
Seward & Kissel US
Ogier Jersey
Sidley Austin US
Simmons & Simmons UK
Dillon Eustace Ireland
Akin Gump Strauss Hauer & Feld US
Dechert UK
ches Serviced, 2016 - Q1 2017

Proportion of All Onshore Hedge Funds

Serviced
10%
5%
5%
4%

4%

3%
3%
3%
2%
2%
Source: Preqin
Proportion of All Offshore Hedge Funds
Serviced
19%
10%
8%
8%
6%
5%
4%
3%
3%
3%
Source: Preqin
Fig. 21: Services Provided to Hedge Fund Managers by Fund Marketers

Proportion of Respondents
Targeting Potential Investors 95%
Developing Marketing Materials 79%
and RFPs

Guiding Investors through

Subscription & Due Diligence 74%
Process

Using Relationships and Contacts 58%

with Wealthy Investors to Broker
Introductions
Media Relations 26%

Using Discretionary Powers to 5%

Invest Clients' Monies in Funds

Fig. 22: Typical Number of Hedge Funds Fund Marketers Work with

Clients Proportion of Funds

1 22%
2-3 33%
4-5 19%
6-7 9%
8-9 3%
10+ 14%
Fig. 23: Investor Types Marketed to by Fund Marketers

Investor Type Proportion

Family
Fund ofOffice
Hedge 79%
Funds Manager 79%
Endowment Plan 68%
Wealth Manager 63%
Asset Manager 58%
Foundation
Private Sector 58%
Pension Fund
Public Pension 53%
Fund
Insurance 42%
Company 37%
Bank
Sovereign Wealth 26%
Fund
Superannuation 16%
Scheme 16%
Fig. 24: Services Provided to Hedge Fund Managers by Fund Marketers

Top Level Strategy Strategies Currently Marketing

Equity Strategies 58%

Event Driven
Strategies 25%
Credit Strategies 24%
Multi-Strategy 20%
Relative Value
Strategies 16%
Macro Strategies 11%
Managed
Futures/ CTA 6%
 Fig. 21: Services Provided to Hedge Fund Managers by Fund Markete
100%
95%

90%

80% 79%
74%

70%
P ro p o rti o n o f R e sp o n d e n ts

60% 58%

50%

40%

30%
26%

20%

10%

0%

Fig. 22: Typical Number of Hedge Funds Third-Party Marketers Work with

13.96%
22.35%

2.53% 1

2-3
9.28%
4-5

6-7

8-9
 Pro po rtion o f Respo ndents

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Fa m i l y O ffi ce

79%
F u n d o f H e d ge

79%
F u n d s M a n a ge r
9.28%

En d ow m e nt Pl a n
2.53%

68%
19.40%

We a l th M a n a ge r

63%
As s et M a n a ge r

58%
Fo u n d ati o n

58%
32.47%

Investor Type
Pri vate S e cto r 53%
Pe n s i o n F u n d

Pu b l i c Pe n s i o n
42%

Fund

I n s u ra n ce
37%

Co m p a ny
Fig. 23: Investor Types Marketed to by Fund Marketers
1

8-9
6-7
4-5
2-3

10+

26
Strategies Seeking to Work with in 2017 Fig. 24: Services Provided to He

Proportion of Respondents
56% 70%

33%
44% 60% 58%
56%
22%
50%
39%
44%
33%
40%
11% 33%

30%
25%
24%

20%

10%

0%
Equi ty Strategi es Event Dri ven Credit Strategi es M
Strategi es

Strategi es Currentl y Marketing

o Hedge Fund Managers by Fund Marketers

74%

58%

26%

5%

Source: Preqin

s Third-Party Marketers Work with

22.35%

2-3

4-5

6-7

8-9
 Fo u n d ati o n

58%
32.47%

Investor Type
Pri vate S e cto r

53%
Pe n s i o n F u n d

Pu b l i c Pe n s i o n

42%
Fund

I n s u ra n ce

37%
Co m p a ny

pes Marketed to by Fund Marketers

1

8-9
6-7
4-5
2-3

10+

Ba nk

26%
Source: Preqin

S ove re i g n We a l th

16%
Fund

S u p e ra n n u ati o n

16%
S ch e m e

Source: Preqin
 Fig. 24: Services Provided to Hedge Fund Managers by Fund Marketers

56%

44%

39%

33% 33%

25%
24%
22%
20%
16%

11% 11%

6%

Strategi es Event Dri ven Credit Strategi es Mul ti-Strategy Rel ative Val ue Macro Strategi es Ma naged
Strategi es Strategi es Futures / CTA

Strategi es Currentl y Marketing Strategi es Seeki ng to Work wi th i n 2017

Source: Preqin
 11%

aged
res / CTA

Source: Preqin