360-degree hedge fund solutions - Strategic Partnership Models
The operational landscape for hedge funds is currently defined by technological integration, enhanced risk management and compliance frameworks, as operational efficiency and robust infrastructure become key differentiators in a competitive market.
Changes to internal shadow footprints, and a shift from traditional 'full shadow' models toward more sophisticated oversight frameworks, are now being seen more frequently, and two transformative partnership approaches have emerged at the forefront of fund operations: strategic staff augmentation and technology co-sourcing solutions.
These models are redefining how investment managers optimize their internal operational infrastructure and lever external expertise in ways that were not possible in the past.
Staff Augmentation: Transforming Operations
Staff augmentation involves strategically adding skilled professionals to existing teams, enabling firms to scale operations efficiently during peak periods. These secondments can be tactical, strategic, or long-term, and whether supporting operational needs or driving comprehensive workflow optimization, these arrangements provide seamless integration with client teams while maintaining operational excellence.
This approach provides flexibility to handle complex fund activities, meet deadlines, and access specialized expertise, allowing managers to scale resources efficiently while reducing fixed costs, and the model particularly shines during peak periods, special projects, and transformational initiatives.
Technology Co-sourcing: Optimizing Infrastructure
The technology co-sourcing model addresses the growing complexity of investment management operations. Embedding professionals within clients’ technology ecosystems in order to allow Citco to take ownership of back and middle office workflows, this approach allows firms to maintain control of proprietary systems while accessing specialized expertise for system maintenance, development, and enhancement.
Co-sourcing proves particularly valuable for firms with established technology infrastructure who are trying to optimize operations without maintaining extensive internal teams.
The future of partnership models
As the industry continues to evolve, these partnership models represent the next generation of fund servicing, moving beyond traditional daily reporting and outsourcing. Whether through staff augmentation, technology co-sourcing, or a combination of both, managers are able to optimize operations while maintaining effective oversight and control.
Both models are enhanced by technology. The Citco group of companies’ (Citco) commitment to cloud-based data platforms and workflow tools enable real-time, exceptions-based reporting with actionable insights. This technology foundation supports comprehensive middle and back-office workflows, from investor onboarding to order management, payments processing, and risk solutions.
360-degree hedge fund solutions by Citco – your strategic partnership solution
Citco has embarked on launching operating model re-design and workflow optimisation programs with its most strategic clients in recent years. We call this 360-degree hedge fund solutions.
These programs have now become a mainstay of how we approach servicing our clients. They include cloud-ready data management solutions, technology co-sourcing and staff augmentation, and have created a new paradigm with the power to transform everything from investor onboarding to order management workflows, payments processing, invoice approvals, document management as well as advanced risk solutions and more besides.
Managers who engage with Citco in this way are already experiencing enhanced exceptions-based reporting daily, with truly actionable data insights, all without having to overhaul their own internal processes.
A significant advantage for managers is that they are benefiting from the investments Citco has made in cutting-edge technology and data platforms, which in turn is helping managers reduce their own future technology costs.