Published on Hedgeweek here
The number of alternative asset managers grew by 15 per cent in the third quarter of 2015, according to a new report from Convergence, the Q3 update on the State of the Union of the Alternative Asset Management Industry.
The report, which focuses on business trends amongst alternative asset managers, related assessments of changes in operating complexity and risk, and changes in operating productivity, uses data sourced from SEC filings and enriched to provide a unique view into the infrastructure of over 16,000 RIA’s. In Q3 2015 5,300 Advisors updated Form ADV.
It reveals that The Complexity Index, which is a composite value representing complexity and risk increased 8 per cent during the period, while total headcount surpassed 80k – 11 per cent increase from Q3 2014 – with the biggest increase being in non investment professional headcount.
In addition, the report states that the Regulatory environment continues to grow and intensify with the number of Regulators by Advisor growing 23 primarily due to new jurisdictions, administration and audit consolidation continues in the market, and operating productivity declined at advisors suggesting a greater usage of technology and outsourcing.
“The key to our data set is the completeness and structure as well as the independent sourcing and the time series element. Convergence will continue to monitor this ever changing industry providing empirical data, fueleld by research and observations,” says John Phinney (pictured) Co-President of Convergence.
“Convergence’s unique State of the Union report and insight allows Managers and Advisors to put increased focus on defining their current operating metrics, establish clear operations-related objectives, and see a clearer path to a company’s growth plans. It will provide service providers a ‘best fit’ analyses of the marketplace and Investors with an additional layer of Due Diligence data,” adds George Evans Co- President.