HONG KONG – The Citco Group of Companies (“Citco”), a leading provider of asset servicing solutions to the global alternative investment industry, today confirmed its on-boarding of additional commitments from longstanding client EQT, a leading global investment firm with more than €50 billion in raised capital across 28 funds. The additional commitments were driven by an increase in fund size, significant co-investment activity and broadening of strategies. To enable this expansion, amongst other things, Citco launched its center of excellence for Private Equity investor services and created a dedicated team to manage integrations and support strategic changes by clients through process enhancement initiatives and implementation of customized technology solutions.
Citco provides a full suite of asset servicing and related solutions to EQT’s portfolio of funds and special purpose vehicles, including administration of around €15 billion in new capital commitments across 3 new funds closed during 2018.
The Citco full-service solution provided to EQT since 2014 covers asset servicing, fund administration, fund accounting, corporate secretarial, fund performance reporting, treasury and related needs across its private equity, infrastructure, real estate, private credit, ventures and recently-launched mid-cap public equity funds.
EQT is also an early adopter of Citco’s recently launched Æxeo Treasury, a software-as-a-service offering, to simplify the firm’s day-to-day banking operations and relationships. Citco’s first ‘born-in- the-cloud’ solution, Æxeo Treasury is a stand-alone tool that enables alternative fund managers to improve operational efficiencies by centralizing their treasury functions – including funding investments, settling OTC trades and margin, making transfers between accounts or paying invoices — on a secure state-of-the-art module running on Amazon Web Services.
Patrik Burnäs, Group Head of Fund Operations at EQT, said: “Citco’s experienced staff and technology-based solutions are a seamless extension of our own capabilities, helping EQT to deliver the operational efficiency required to invest across asset classes and geographies. Citco’s deep industry expertise, investments in well working digital solutions and global reach make it an ideal partner to support EQT’s growth and development ambitions.”
Nikolaos Perros, Head of Private Equity fund services at Citco, said: “We are proud of our long-term relationship with EQT, which is well-established as one of the world’s leading private equity firms. EQT’s remarkable growth in recent years reflects a wider trend in the industry in which the most successful players are deploying larger funds across a broader canvas of investment opportunities globally. We at Citco have developed the service capabilities — including people, processes and technologies — to support the administration needs of these mega-funds, with speed, efficiency and at scale.”
Citco will launch a white paper in Q1 2019 highlighting the growth of global ‘mega funds’ in the alternative asset management sector, addressing specifically the challenges of size, scale and complexity faced by industry-leading firms as well as the potential rewards of working with the right partner in solving those challenges. The paper will draw on the insights and experiences of leading practitioners from across the sector, supported by industry data and analytics.