Case Studies

US quantative hedge fund launches London operation within four weeks

Situation

A US hedge fund was looking to open a London office in order to integrate additional local traders to seamlessly complement its existing strategy in New York. The hedge fund was in need of an immediately available turn-key structure including regulatory license, framework and office space.

Client goals

An immediate go-live via a simple service provider offering, commencing with fund formation, structuring, legal, compliance and regulations and office management services being provided.

Barriers to success

The average time frame for the implementation of such a project can 10-12 months with start-up costs of £500-800k. Due to regulatory reasons, the portfolio managers and traders would be unable to trade during the preparation time, potentially harming the client’s ability to attract top talent and take advantage of market dislocations.

Solutions provided

Lawson Conner provided a one-stop solution to the client, comprising of: regulatory infrastructure, managed compliance services for trade reporting and post trade surveillance, risk management program, compliance support, training & development, office space, regulatory filings.

Results

The client was able to start trading within five weeks, introducing a new investment strategy to its investor base.

One of the biggest private equity spin-outs of 2017 required an immediate regulatory hosting solution

Situation

The private equity arm of one of the largest global fund management groups was spinning out of its ultimate parent company via a management buyout and needed to start conducting regulated activities immediately after spinning-out whilst awaiting FCA authorisation.

Client goals

An interim solution which would enable operation during the lengthy approval process of six to 10 months and provide speed of execution and a smooth business transition.

Barriers to success

Such a delicate transaction as a management buyout involves significant investor dialogue, and, entrusting the regulatory status of the UK entity to a third party can often be a challenging proposition for institutional investors to comprehend.

Solutions provided

Lawson Conner provided the regulatory infrastructure so the client can start marketing the fund under AIFMD. Lawson Conner completed all regulatory filings and notifications and made sure the firm was compliant right from the start to meet operational due diligence requirements. The client has received its direct authorisation and Lawson Conner provides managed compliance services and software.

Results

The management buyout and the launch of the client’s own fund was executed in a record time without any material business disruption. All investors were satisfied to provide additional capital to the fund.

Lawson Conner assisted one of the leading law firms in executing a multi-billion global capital raising program by providing global KYC/AML services

Situation

The client needed a complete global AML solution and investor onboarding services all in one platform as part of their >$1bn capital raising.

Barriers to success

The client was working against a very tight deadline of only two weeks and needed an organisation which can complete the project on a global scale. This involved the processing of a vast amount of data, the review of complex investor structures and the application of a global AML program. In order to meet the deadline a software solution was required.

Solutions provided

Lawson Conner provided a number of solutions to the client, which included Lawson Conner’s AML software MaxComply:

  • Fully integrated AML solution with dedicated escalation structures
  • Service provided on a managed compliance basis
  • Ongoing monitoring services to comply with global KYC/AML regulations
  • IT platform for data exchange over multiple offices and jurisdictions
  • Full reporting and audit trail
  • Scalability for further capital raisings
  • Ongoing monitoring of AML provisions and data as part of compliance monitoring program
  • Use of Lawson Conner’s AML software suite to reduce risks and increase efficiency

Results

A great number of individual AML checks have been performed within a very tight deadline with great quality. As a result, the client was happy to confirm another mandate on a similar basis to Lawson Conner with the third mandate already announced in the near future.