Industry Report

Expansion Puts Alternatives at a Technology Crossroads

As hedge fund and private equity firms expand into multiple lines of business, they are running into operational obstacles. This paper explores some of the challenges of strategy proliferation—and solutions for overcoming them.

The alternative investment marketplace tends to reflect investor demand. For instance, as institutional capital began to dominate fund assets over the last decade, the industry responded by implementing stronger risk controls and greater transparency that institutions required. Now, in the quest for greater returns, those same investors are seeking to diversify their alternative allocations beyond hedge funds.