Prime brokers: Hedge funds go outsourcing

Increasing regulatory costs for hedge fund managers are leading large players to make a U-turn and look to outsource back-office functions, says Tom Kerns, global head of client reporting and product integration at Deutsche Bank Global Prime Services.

Deutsche bolsters its prime services offering to meet demands

Kerns is head of Deutsche’s prime services consultancy group, which was established at the beginning of this year to offer advice to hedge fund managers looking for third-party service providers such as administrators, software vendors and accountancy firms. “As costs go up and returns come down, hedge fund managers are now considering where they can cut overheads,” he says.

Kerns reckons the process amounts to evolution gone full circle.

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