Del Mar Asset Management - PE

CASE STUDY:
Del Mar Asset
Management
‘‘(SS&C GlobeOp) is our
accounting and financial
repository, so obtaining the data
was straightforward for them.’’
Contained within the 2,319 pages of the Dodd-Frank Act
lie Sections 404 and 406, which obligate private funds including hedge funds, private liquidity funds and private
equity vehicles managing in excess of $150 million in assets
under management (AuM) - to file a Form PF with the United
States Securities and Exchange Commission (SEC). The
Faced with the cost, risk and administrative
burden of completing Form PF, one New
York-based fund manager out-sourced the
task to its fund administrator. Del Mar
Asset Management also expects to use
SS&C GlobeOp to assist with FATCA.
SEC will subsequently pass all of this data to the Financial
Stability Oversight Council (FSOC), the body charged with
monitoring systemic risk in capital markets.
Del Mar Asset Management, a New York-based multistrategy, event-driven hedge fund with approximately $200
million in AuM, was just one of the 2,661 investment advisers
affected by the rule changes to submit Form PF. Del Mar is
required to submit Form PF annually as it lies below the $1.5
billion threshold for quarterly reporting. To assist it with filing
Form PF, it looked to its fund administrator, SS&C GlobeOp.
“The rationale for choosing SS&C GlobeOp to help us
with our Form PF submissions are several-fold,” explains
Jeffrey Hwang, chief operating officer (COO) at Del Mar.
“The fund administrator is very technology-focused and its
hedge fund platform and web portal are robust. We also used
GlobeOp as administrator prior to its acquisition by SS&C
Technologies, and maintaining that relationship ensured
we could file our regulatory reports in a seamless and
streamlined manner.”
The Form PF service from SS&C GlobeOp aggregates
While Hwang does not provide specifics on pricing, he
requires them to enhance their investor due diligence
describes the SS&C GlobeOp Form PF service as “highly
and demand proof through a W-8 or W-9 form that an
competitive in regards to its peers.” For this reason, unlike
investor is not American. Given the wealth of data held
other initial Form PF filers, Del Mar elected not to in-source
by administrators, many are offering a FATCA compliance
the entire process. “We felt confident that SS&C GlobeOp
tool, and SS&C GlobeOp is no exception. “While we are
had the internal infrastructure and operational know-how and
not reporting data under FATCA yet, we are using SS&C
knowledge to do it for us right from the offset,” says Hwang.
GlobeOp to assist us in FATCA compliance and ensuring our
Going forward, Del Mar plans to use SS&C GlobeOp to assist
investors are not recalcitrant in any way, or non-compliant
it with compliance with the Foreign Account Tax Compliance
with US tax law,” says Hwang.
Act (FATCA), the United States (US) legislation aimed
While SS&C GlobeOp offers reporting services to help
at forcing financial institutions (FIs) and foreign financial
managers submit their Annex IV under the European Union
institutions (FFIs) to disclose information on account-holders
(EU) Alternative Investment Fund Managers Directive
to local tax authorities and the Internal Revenue Service
(AIFMD) and the Open Protocol Enabling Risk Aggregation
(IRS) so as to identify any Americans not paying income tax.
(Open Protocol), the risk reporting tool kit developed by
FATCA is another reporting headache for managers and
Albourne Partners, Del Mar is not using those offerings yet.
and maps the relevant data for the 3,000-plus data fields
demanded by Form PF. One of the biggest challenges fund
administrators have is sourcing all of these data sets, many
of which may be held by other administrators, custodians,
prime brokers and the managers themselves.
“The process was smooth,” comments Hwang. “SS&C
GlobeOp has nearly all of our books and records in their
systems. It is our accounting and financial repository, so
obtaining the data was straightforward for them. I believe they
SS&C GlobeOp
at a glance
Contact
For further information about
regulatory services, please contact:
host close to 90 per-cent of our data. The only data we had to
Assets under
provide was the internal risk reporting.”
administration (AuA):
675 Third Avenue
$587 billion
New York, NY 10017
Number of clients:
More than 200 clients use
the regulatory services of
SS&C GlobeOp
Email: mmegaw@sscinc.com
The SS&C GlobeOp toolkit also gives managers an
explanation behind the methodologies it employs in the
calculations that populate Form PF. Clients are, however,
allowed to provide overrides for responses to questions, and
document additional methodologies, during the compilation
process. To enable clients to enjoy this transparency, the
United States of America
Telephone: +1 212 455 6333
www.ssctech.com
Mike Megaw
Managing director,
regulatory solutions,
SS&C GlobeOp
SS&C GlobeOp Form PF workflow is done via GoCheck, a
process management tool that gives clients transparency into
the entire process.
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