DTCC’s Alternative Investment Product (AIP) provides end-to-end processing for hedge funds, funds of funds, private equity funds, managed futures and nontraded real estate investment trusts. The solution standardizes the way the alternative investment industry communicates information related to these investments, linking global market participants, including broker/dealers, fund managers, administrators and custodians.
Until now, transactions and communications related to alternative investments have been handled manually, using hard copy, fax, email, phone calls and spreadsheets. This lack of automation and centralization prolongs the transaction process, making these methods inefficient, expensive and fraught with risk.
With total assets managed by hedge funds estimated at $2.5 trillion as of fourth quarter 2011 (excluding double-counting of assets in funds of funds), according to The eVestement|HFN Hedge Fund Industry Asset Flow Performance Report, DTCC sees tremendous opportunity to bring scale and efficiency to this growing market segment.