Fragmented systems no longer meet the needs of alternative managers. Discover why more firms are turning to a “whole-istic” investment ecosystem
Pre-Round Warm-Up: How Alternative Managers Are Adjusting Their Game for Strategy Expansion
For many years, alternative investment managers could rely on a familiar playbook: meeting investor expectations by specializing in a few strategies within a specific asset class.
But today, the course looks different.
With investor demand for diversification on the rise, this traditional model is giving way to a more dynamic, multi-asset and multi-strategy approach. As a result, firms are venturing into new territory: private credit, structured loans, digital assets and beyond.
So how do alternative managers evolve their game without losing their edge?
That was the focus of our recent webinar, Whole in One: Teeing Up a Comprehensive Investment Platform.
Hosted by SS&C leaders Aani Nerlekar, managing director of solutions management, and Frank Matarese, managing director of product management, the webinar delivered strategic insight on how managers must rethink their operations, technology and service models to compete in a rapidly shifting landscape.
Beware of the Bunkers: Understanding the Hazards of Siloed Technology
Aani kicked off the webinar with an overview of how and why alternative fund managers are expanding into new strategies and asset classes.
Citing the EY’s 2024 Global Alternative Fund Survey, Aani noted that over sixty percent of investors said they expect their manager to offer more strategies, ultimately paving the way to capturing more of their clients’ dollar.
But with each new asset or strategy comes another layer of operational complexity—and often, another piece of technology added to the bag. As Aani explained, this fragmented approach can create more problems than it solves.
To drive the point home, Frank noted that when it comes to operational infrastructure, limited-purpose systems from multiple vendors simply can’t support long-term growth. Here’s why:
Fragmented Data and Disparate Technology
As firms adopt more technology from various providers, systems often fail to integrate, resulting in disconnected workflows, siloed data and a fragmented view of the portfolio.
The inconsistent data quality created by these disparate systems undermines confidence in analysis and reporting. Manual reconciliation becomes the norm, raising operational overhead and instilling risk in the process.
In the end, instead of enabling growth, this patchwork of platforms creates friction, making it harder to move quickly or respond strategically.
As Frank put it, technology that can’t keep up becomes a bottleneck, not a foundation.
Many Vendors, Higher Costs
Managing a network of vendors, each of them managing a different slice of the investment lifecycle, creates challenges in integration, accountability and cost control.
With no single source of truth or ownership, issue resolution slows down, and vendor management becomes a job in itself. All of this adds to the total cost of ownership (TCO), without necessarily adding value.
Increased Operational and Compliance Risks
Alternatives managers are under more regulatory pressure than ever. But disconnected systems increase the likelihood of operational errors, data gaps and missed compliance deadlines.
Moreover, manual processes make it harder to stay audit-ready at a time when the cost of non-compliance is high, both in fines and damage to a firm’s reputation.
IT Strain and Resource Constraints
Managing disconnected systems puts additional strain on the firm's IT teams, who are already under pressure to do more with less.
Now, in addition to managing legacy systems and contending with increased cybersecurity threats, IT teams face growing pressure to deliver and support solutions quickly, often without the headcount, budget or bandwidth to support a sprawling investment tech stack.
Driving for Efficiency: The Case for a Unified Ecosystem
As the alternatives market continues to evolve, so must the technology that powers it. For a growing number of alternative investment firms, a scalable, unified investment ecosystem with diverse asset class support is an example of that evolution.
At SS&C Advent, we see an increase in interest in technologies like our Geneva® platform.
The Geneva platform utilizes RESTful APIs to unify two flagship technologies — Eze OEMS and Geneva. This integrated system delivers a seamless front-to-back experience, giving firms the scalability and flexibility needed to confidently expand into new asset classes and strategies without having to rely on disconnected systems or manual workarounds.
In the webinar, Frank and Aani ran through how the front-, middle- and back-office functionality of the Geneva platform seamlessly connects the investment management enterprise:
Streamlining Front- and Middle-Office Workflows
In the front and middle office, the Geneva platform leverages Eze OEMS to provide a seamless, synchronized experience across trading, modeling, analytics and compliance.
With intuitive rules-based order routing (RBOR), advanced modeling tools and automated trade lifecycle management, portfolio managers and traders gain the precision and agility they need to act on opportunities faster.
Features like aggregated institutional liquidity, algo-wheels and real-time analytics support best execution and deeper trade insights, while integrated compliance and exposure management ensure firms can stay ahead of risk without sacrificing speed-to-market.
A Cohesive Back-Office Operation
In the back office, Geneva® delivers the robust, institutional-grade accounting and operational support that alternatives investment firms need to simplify the complexities of managing non-traditional asset classes and scale with confidence.
As a multi-asset, multi-currency and multi-strategy accounting application, Geneva streamlines complex workflows across open and closed books, from investment and fund-level accounting to investor allocations and expense management.
With built-in support for loan processing, strong data governance, and a powerful reporting engine, firms can produce accurate IBOR and ABOR views, generate detailed financial statements and meet evolving transparency demands — all within one cohesive system.
Managed Services – Expanding Capacity Without Growing Overhead
As Aani noted during the webinar, delegating routine yet essential operational tasks to a trusted partner enables firms to stay centered on what matters most: implementing strategies, tracking performance and delivering for investors.
Whether it’s fully outsourced operations or a co-sourced model, offloading middle- and back-office tasks allows for greater cost control and scalability.
Moreover, managed services can provide access to operational experts with deep experience across alternative asset classes, fund structures, jurisdictions and compliance frameworks.
This cohesive, intelligent investment ecosystem – and the managed services that support it – ensures alternatives firms have front-to-back-office resources they need to manage today's asset and strategy expansion and can prepare for whatever the market brings.
The 19th Hole: Learn More About the New Technological Demands Facing Today’s Alternatives Managers
Tee up your next lesson to take a closer look at the demands alternatives managers face and the tools designed to help meet them.
First, hear Frank and Aani’s perspective on the technical demands created by an evolving alternatives market and how the features and functionality of a unified system support those demands. Watch the webinar now.
For another perspective on the trends driving technology changes in the alternatives market, listen to this podcast featuring SS&C’s senior director of product management Raya Gabry and John Berthiaume, director of product management.
And be sure to download our latest white paper to learn why fragmented technology platforms are alternatives managers’ biggest impediment to expansion.
