Redirecting Back-office Resources to Support AUM Growth

OPPORTUNITY

The founders of a growing institutional Small and Mid Cap manager with limited product capacity and excellent investment performance wanted to assess the back-office infrastructure, operational processes, and trading and operations staff to determine areas for improvement against an anticipated 100% growth in AUM over a three-year period.

The founders contacted ReGroup to assess their current state and provide a staged approach for aligning the firm’s trading and operations to attract and support a growing institutional base.

PROCESS

We reviewed key corporate and operations documents, interviewed both employees and vendors, and assessed current and planned technology and product types against similarly situated clients in order to gauge the firm’s strengths and weaknesses against their specific goals. We developed a staged, budget-sensitive strategy that would allow the firm to stay ahead of its projected growth while leveraging existing resources and talent management.

RESULTS

In addition to generating consensus among the firm’s founders, our assessment and scalable recommendations provide expert, independent insight that supports pre-growth assumptions while also providing strategic direction for the firm’s trading and operations functions. By restructuring the trading and operations teams, governance, and reporting structure and scheduling immediate and long-term hires, the firm can access institutional knowledge, introduce succession planning, and redirect certain critical functions such as compliance to in-house resources while continuing to successfully outsource corporate accounting.