Over the past 15 years, we have seen extreme shifts from funds managing their own Middle and Back office operations, to buying that work from Third Party Fund Admins for a price. Companies like Citco, SS&C, Northern Trust, SEI are coming into these Fund Managers and arguing that they have the technology and resources to completely take Reqs, Allocations, Valuations, and even Investor Services, off the HF/PE Fund Managers hands for a price.
What is happening to the COO position or Middle and Back Office managers at all these HF/PE Funds as their entire department is laid off to let the Admin take over their work for ~1-200BP?
My future career path was leading me towards an MBA focusing on MO and BO and eventually running COO at a Fund, but it is beginning to look like those positions are about to be as commonplace as the Giant Panda.
Where does the near future look like for people with an IT/Accounting/Finance/Fund Management background, if they didnt start their career as a quant, banker, or Front Office trader?
Think you'll always need someone running the function from the inside. That seems to be one of the key requirements. Like the outsourced offices may be good at actually doing but you'll still definitely need some oversight. May be a slightly smaller team. For really big funds, they like to keep some of that internal, maybe they'll outsource the settlements etc. but they'll always need to do some of that work themselves.
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