Viteos targets European expansion
SOURCE: ICFA Online
DATE: May 12th, 2008
Mohit soapbox:
Credit Suisse has an equity position in this firm. There are quite a few speciality firms out there which deal with
niche in the market. For a newer firm to survive and grow they do need to build a certain niche area where they can distinguish themselves. The challenge which remains with niche firms which either stay small or become mid size is how to scale up. Current capital markets are not supporting such firms to go public, cost of debt is high, cost of customer acquisition is high and the valuations are low. Another firm which seems to offer similar services is epitomeglobalservices. Seems like the growth strategy for Viteos is to leverage the Credit Suisse relationship and serve as a processor for Credit Suisse clients.
ARTICLE
The hedge fund operations specialist Viteos Fund Services is establishing a sales and operational support office in London as part of its plans to expand the business in the UK and European market.
The move is a response to client demand for a worldwide footprint, said Viteos, which has an existing presence in North America and South Asia.
The firm said it has been experiencing rapid growth in its existing markets, with assets under administration growing to $8.5bn, up from $1bn in February 2006, and client numbers up to 30.
At least part of the growth has been driven by the firm’s recent partnership with Credit Suisse, which has taken an equity position in Viteos.
Since then the two companies have been co-marketing a jointly developed outsourcing service for hedge fund middle-office operations.
Dougal Brecht, managing director of Prime Services at Credit Suisse, welcomed the opening of the new office.
He said there was demand in Europe for the hedge fund operations outsourcing services provided by Viteos.
“They offer bespoke outsourcing solutions and operational support to hedge funds,” he explained.
“These services are becoming an increasingly important as the European industry matures and fund managers need to create robust and flexible business platforms.”
Brecht said Credit Suisse would be supporting the company’s European expansion.
Shankar Iyer, CEO of Viteos Fund Services, said he sensed demand among Euroepan hedge funds for more bespoke service solutions.
“Hedge funds are increasingly frustrated with ‘cookie-cutter’ solutions to their unique problems,” he said.
“Our approach has been, and will continue to be, one in which client needs define the offering, and where we serve as a strategic partner in their business growth.”
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