CO²RE Operational Infrastructure Review Case

The Challenge

A prominent hedge fund with over 60 employees is primarily invested in high yield distressed debt, bank debt, equities, real estate and derivatives. The firm experienced rapid growth since its inception six years prior. Its investment vehicles include absolute return funds, levered credit funds and middle market, structured and long only products. To meet the fast growth and varied, complex demands of the business during this period, its practices evolved through necessity to meet the business requirements.

The technical environment included a variety of systems, some of which possessed highly multifaceted functionality. In many cases, the firm’s intent was to utilize a particular system for very specific and limited purposes. But given the complex nature of each system, this resulted in patch work architecture with many systems not in full production and no plan in place to complete the implementations.

Further, this client relied heavily on Excel for most of its major business processes. The infrastructure was exceedingly people dependent and its overall scalability was low. Major challenges included computing meaningful, accurate and timely fund returns, partnership income allocations and preparing internal management and client reporting. An assessment of the issues included weak systems and data integration, inaccessibility of stored and calculated data, key functionality gaps in mission critical systems, inefficient and lack of responsive reporting processes, instability of the systems environment, deficient internal technology capabilities, dependency on software vendor running the day to day environment and an inability to meet the demands of their business growth.

 

Our Approach

  • Detailed the process workflows and existing system architecture including a review of the client’s portfolio management system
  • Documented issues, challenges and needs in a comprehensive report that provided
  • tactical and strategic recommendations and an implementation plan to build an infrastructure that will meet the firm’s long term objectives
  • Conducted a thorough review and assessment of the firm’s current systems, processes and procedures
  • Interviewed staff and documented roles, responsibilities and requirements with respect to their involvement in over 20 business processes
  • Gained an understanding of the current projects, and the management practices associated with technology development and change management

 

The Results

  • The project was completed in 3 months
  • Delivered to the firm’s management committee a Best Practices Report containing detailed infrastructure analysis, observations and recommendations. This enabled client management to gain a consensus on a long term strategic plan to overhaul the infrastructure.
  • Prepared recommendations in the form of a 24 month plan and timeline and 90 day action plan that was adopted by the firm’s management
  • Technology began implementing formalized management practices to track technology requests and projects
  • The firm accelerated a series of business process improvement projects that helped to stabilize the operating environment and strengthen their ability to begin executing the long term strategic plan of implementing a reporting repository and overhauling all existing systems
  • IntegriDATA was retained thereafter on various initiatives tied to the recommendations

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