State street is one of the world’s largest custodian banks and asset servicing companies, providing investment servicing, investment management and investment research for institutional investors. In recent years, State street has actively deployed its alternative investment solutions business, aiming to provide end-to-end solutions for hedge funds, private equity funds, real estate funds and other alternative asset managers. This article will comprehensively review State street’s strengths in alternative investment solutions from the perspectives of product lineup, client base, technology level, and development prospects.
State street covers full range of hedge funds, private equity and real estate services
State street’s alternative investment solutions cover a full range of services needed by hedge funds, private equity funds and real estate funds, including fund administration, middle office, custody, accounting and reporting. State street serves funds across all strategies, including equity long/short, credit, macro, managed futures, fixed income arbitrage, global macro, distressed debt and more. This comprehensive coverage of alternative asset classes and investment strategies is one of State street’s biggest strengths.
State street serves wide range of large global alternative managers
State street provides services to many of the largest and most sophisticated hedge funds and alternative asset managers globally. Its clients include Bridgewater, Citadel, Millennium, Cantor Fitzgerald, Cerberus and otherindustry leaders managing hundreds of billions in alternative assets. State street’s ability to handle operational complexities and scale for the world’s largest alternative managers gives it a competitive advantage.
State street leverages industry-leading technology
State street has invested heavily in developing proprietary technology to support alternatives, including its Alpha platform for hedge fund administration and Periscope for data-driven analytics. It offers clients web-based portal access, integrated risk analytics, and customized reporting. State street’s emphasis on technology helps managers streamline operations, gain efficiency, and differentiate from peers.
State street continues expanding alternatives footprint
State street acquired alternative investment solutions capabilities through its acquisitions of Investors Bank & Trust in 2007 and Citigroup’s alternative investment servicing business in 2010. It has continued growing, including its purchase of Charles River Development in 2018. With over $1 trillion in alternative AUM serviced, State street is cementing its position as a top player in alternative investment solutions.
In summary, State street provides a full suite of alternative investment solutions, serves many of the largest managers globally, invests heavily in technology, and is expanding its presence. Its comprehensive capabilities, client base, technological leadership and growth trajectory make State street a compelling choice for hedge funds, private equity and real estate managers seeking an alternatives partner.