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How Diversifying into New Asset Classes Raises Opportunities and Challenges

The alternatives fund sector is adapting to a new market backdrop by expanding from pure-play hedge funds into closed-end private structures and from closed-end private equity shops into open-ended fund structures.

As different alternatives classes have vastly different strategies for achieving alpha, operational requirements naturally differ greatly. Alternative asset managers must carefully consider the resources they will need to be successful. The right outsourcing partner can be invaluable in helping set up new funds and navigating new asset classes.
Before alts managers commit to expanding their strategies, they should ask themselves some important questions:

• Will my planned approach create a holistic or bolt-on offering?
• Can I ensure this expansion won’t leave my current investors behind?
• Am I operationally ready with the required expertise and service providers?


Peter Sanchez

Peter Sanchez

Head of The Northern Trust International Banking Corporation
Peter is an Executive Vice President at The Northern Trust Company and serves as head of The Northern Trust International Banking Corporation (TNTIBC) which provides customized international payments and an array of multicurrency services to institutional entities globally.