J.P. Morgan is replatforming its hedge fund servicing business, with 40 percent of its clients now using its new technology platform.
According to J.P. Morgan, the rest of its client base will be able to use the platform by the end of the year.
J.P. Morgan said its initiative was to simplify and upgrade the tech stack, simplify the operating model, and simplify the location strategy.
Instead of having up to 16 different locations with pieces being done everywhere J.P. Morgan now has a singular model using a small number of core locations.
Joan Kehoe, global head of alternative investment services at J.P. Morgan, said: “On the hedge fund servicing side, going back some years we had old technologies running on a number of separate applications.”
“Our data analytics team is driven out of Bangalore. If the net asset value (NAV) is for European clients it’s typically being struck in Dublin. If it’s a US client, same model but NAV struck in the US.”
She added: “This re-platforming had an effect on our appetite for new business as our objective is to provide first-class business all the time. As the technology and location strategy is now firmly in place, the hedge fund services arm of J.P. Morgan alternative investment services is open for business and excited about the future.”
“While on the hedge fund servicing side we have completely re-platformed from a technology perspective, in the private equity business, we were using the right technology, we just needed to improve the operating model and location strategy. Since that process has been completed, the private equity business is firing on all cylinders.”
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