Hedge fund administrator GlobeOp in takeover talks

Posted Jan.11, 2012 under Hedge Fund Administration

GlobeOp Financial Services (GO.L) is in talks with private equity firms Advent International Corporation and TPG over possible takeover offers, as the hedge fund services firm carries out a strategic review to try and boost its share price.

The London and New York-based firm, which has $173 billion in client assets under administration and which last month said it was encouraged by net inflows, said the talks have come after it appointed Evercore Partners to advise on a review.

The firm has formed an independent committee to conduct discussions as some directors may take part in an offer.

Talks are still at a preliminary stage, GlobeOp added.

Shares in GlobeOp, which publishes monthly updates of client flows and redemption requests, have fallen from more than 440 pence last July to below 300 pence at Thursday’s close.

The company had a market cap of 312 million pounds as at close of trading on Thursday, Thomson Reuters data showed.

“GlobeOp is performing extremely well and we are confident of continuing the strong growth of the business under our current ownership structure,” said GlobeOp chairman Ed Nicoll in a statement.

“Nevertheless, the board felt it right to explore options which could enhance the interests of clients, employees and shareholders.”

Source: Reuters

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U.S. SEC Seeks Emergency Halt to Citigroup Fraud Case

Posted Dec.29, 2011 under Hedge Fund Knowledge

The U.S. Securities and Exchange Commission filed an emergency request to put its securities fraud lawsuit against Citigroup Inc. on hold so it can quickly appeal a judge’s decision to reject its proposed settlement with the bank.

In a court filing, the SEC said the urgency came after U.S. District Judge Jed Rakoff in a teleconference this month directed Citigroup to address its charges by Jan.  nearly one month sooner than federal rules require.

Mr. Rakoff on Nov. 28 had harshly rejected the proposed $285 million settlement, saying the SEC’s failure to require the New York-based bank to admit or deny its charges left him no way to know whether the settlement was adequate.

But the SEC said the ruling was “legal error,” at odds with decades of court decisions allowing such settlements and letting investors get faster recoveries, and could affect its ability to reach similar accords with other companies.

In its Tuesday [Dec. 27] filing with the 2nd U.S. Circuit Court of Appeals in New York, the SEC it faced potential irreparable harm if Citigroup were forced by Jan. 3 to “answer” its complaint, 27 days sooner than federal rules require. An answer can force Citigroup to deny some or all of the SEC allegations, or seek to dismiss the case entirely.

But doing so would force the SEC to devote substantial resources to the case and “disrupt a central negotiated provision of the consent judgment pursuant to which Citigroup agreed not to deny the allegations,” the regulator said.

“The parties will not be able to return to their initial bargaining positions should this court ultimately reverse the district court,” the SEC added.

The SEC said Citigroup has agreed to its request to put the case on hold and allow an expedited appeal.

Announced on Oct. 19, the settlement was intended to resolve charges that Citigroup sold $1 billion of risky mortgage-linked securities in 2007, without telling investors that it was betting against the debt. Investors lost more than $700 million, the SEC has estimated.

The $285 million payment was to include $160 million of disgorged profit and fees, $30 million of interest and a $95 million civil fine. Mr. Rakoff called the penalty “pocket change” for Citigroup, the third-largest U.S. bank.

But the SEC has said the law limits the sums it can recover. It has asked Congress for authority to seek larger penalties in corporate cases.

Mr. Rakoff has set a July 16, 2012, trial date. One Citigroup employee, director Brian Stoker, was also charged by the SEC, and has been contesting those charges.

The case is SEC v Citigroup Global Markets Inc., case No. 11-05227, in 2nd U.S. Circuit Court of Appeals.

Source: Reuters

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Advent Named European Back Office Provider of the Year by Funds Europe

Posted Dec.24, 2011 under Advent Geneva

Advent Software, Inc. , a leading provider of software and services for the global investment management industry, today announced that it has been named European Back Office Provider of the Year in the Funds Europe Awards 2011. The annual award recognizes Advent’s track record of innovation in delivering an industry-leading hedge fund solution(1) in Europe.

Advent has gained momentum in the European hedge fund market. Advent’s hedge fund and alternative investment manager solution Geneva(R) offers unparalleled fund and shareholder accounting coupled with flexible data access to provide transparency for both manager and investor to prove fund valuation and inform investment decision making. These innovative features, built on Advent’s industry leading portfolio accounting platform, make the solution attractive to European hedge funds who are looking to grow, enhance client service and comply with regulatory standards.

In March 2011, Advent acquired London-based Syncova, integrating margin optimization into Advent’s solutions and growing the UK team. Demonstrating Advent’s ongoing commitment to better serve the region, the company has also certified ten new consultants on Advent’s hedge fund solution, bringing the number of staff members and consultants working for Advent’s hedge fund team in EMEA to more than 35.

“Advent is honored to be recognized as a global leader in providing hedge fund solutions. We have invested efforts toward deepening our understanding of the European hedge fund space, and this prestigious award reflects our company’s strong momentum and commitment to the region,” said Hakan Valberg, senior vice president and general manager, Advent Software EMEA. “Growing our team and skills, as well as rolling out innovative enhancements specific to this market, have been critical to our success and valuable services for our clients.”

Advent’s investments in the hedge fund space have been recognized by new clients and by the industry at large. Advent won 2011 Hedge Fund Journal, HFM Week and Waters Technology awards, and Advent’s CEO Stephanie DiMarco was named one of the 50 Leading Women in Hedge Funds.

About Geneva(R) Geneva(R), a global portfolio management, reporting and investor accounting platform, is a proven solution for asset managers, hedge funds, fund administrators, prime brokers, and fund of funds that require a high level of operational efficiency and access to real-time P&L, performance, and exposure reporting. Geneva(R) offers comprehensive instrument coverage, a fully integrated financial general ledger, and industry-standard integration tools to enable firms to manage complex investment vehicles, multiple investment strategies, and unlimited fund structures.

About Advent Advent Software, Inc., a global firm, has provided trusted solutions to the world’s financial professionals since 1983. Firms in more than 60 countries count on Advent technology to run their mission-critical operations. Advent’s quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling operational risks and costs.

Advent, the Advent logo, Advent Software and Geneva are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.

SOURCE: Advent Software, Inc.

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