State Street names new Asia Pacific head of alternative investment solutions
03 September 2014
Category: News, Asia, Global, Hong Kong
By David Macfarlane
State Street Corporation has appointed Bob Keogh as head of alternative investment solutions (AIS) for the Asia Pacific region. He will be based in Hong Kong and will assume responsibility for the hedge fund, private equity and real estate businesses in Asia Pacific.
Bhagesh Malde, senior managing director for State Street’s AIS business, points out that Asia is one of the most significant growth areas for the firm’s alternatives’ servicing business.
Mr. Keogh tells Asia Asset Management that the demand for alternatives’ servicing is coming from a wide range of clients. “Not only has demand increased from the traditional boutiques, like hedge funds and private equity managers, but official institutions and asset owners are increasing their investments in alternative strategies on both a direct and indirect basis,” he says. “There are a wide range of services available that start with fund accounting and administration and extends into outsourced operations, financing solutions, and performance and analytics. These services are delivered to both the investment manager community as well as ultimate investors.”
Mr. Keogh has spent the last 14 years of his career in the hedge fund industry. He was previously senior managing director for State Street’s hedge fund servicing business based in Europe. Mr. Keogh joined State Street in 2012 from Goldman Sachs as part of the firm’s acquisition of Goldman Sachs Administration Services (GSAS). Prior to this role, he was head of the GSAS business in Europe and Asia where he established offices in Ireland, Hong Kong and Singapore.
Mr. Malde says State Street’s recent global research shows that more capital has been flowing into alternative assets and this looks set to continue.
Mr. Keogh claims North America is still dominating the inbound investments into the Asian alternatives market and says: “We have seen a number of Canadian pension plans establish offices in the region and they are being followed by a number of progressive US pensions and endowments who are also looking to be on the ground. We have also seen the emergence of the Chinese investors. With a number of Sunshine managers establishing offshore operations, they have brought relationships from China that, in some instances, can represent a rather large pool of assets.”
In regard to the growth in demand for alternatives’ servicing in Asia over the last few years, Mr. Keogh says there have been two areas of growth: The need for greater transparency, and the rise of the SWFs and asset owners into alternatives. “Transparency is being demanded by regulators and investors. Managers have had to invest in processes and technology to satisfy these demands and to attract new assets,” he explains. “A manager’s administrator is a natural provider to consolidate and provide this detail, including solutions for OP, FATCA and AIFMD reporting. In terms of the growing allocation to alternatives by SWFs and asset owners, State Street’s experience as the largest fund administrator to the hedge, private equity and real estate communities allows us to provide unequalled insights and guidance on best practices and cutting edge strategies.”
State Street had US$1,291 billion in assets under administration as of June 30. In Asia Pacific, the company currently offers real estate, hedge fund and private equity servicing in mainland China, Hong Kong, Singapore, Tokyo, and Australia.