WTP Advisors, has announced that it has acquired Sala Associates LLC, an esteemed provider of operations consulting for hedge funds and investment banks. Sala Associates will now become WTP Capital Markets.
Building on Sala Associates' existing suite of services, WTP Capital Markets will offer tailored solutions for hedge funds in start-up and transitional phases focusing on operational infrastructure, including, fund administration and prime brokerage assessment and selection, staffing, and serving as pro-tem CFO/COO. WTP Capital Markets will also help financial institutions improve their bottom line and reduce costs by streamlining their technology and operational systems.
"There is a growing need for business experts who can manage the operations side of investment funds. By providing back and middle office infrastructure, WTP Capital Markets lets hedge fund managers focus on trading," says Michael Minihan, Partner and co-founder of WTP Advisors. "We will also concentrate on offering business advisory services specific to investment banks, including process re-engineering, which can result in significant cost savings."
Louis J. Sala, principal and founder of Sala Associates will come aboard as CEO of WTP Capital Markets. Sala's 25 years of experience in the finance industry has made Sala Associates a much sought-after firm for handling the 'blocking and tackling' functions of hedge funds, as well as investment banks.
"In the post-Madoff era the hedge fund industry has witnessed a greater emphasis on ensuring fund managers focus on the business of running a business. Portfolio managers must be actively engaged in building and maintaining cost effective infrastructures with sound internal controls," says Sala.
In other words, Sala and his staff provide a specific need high in demand within the hedge fund space: delivering the non-trading activities that are the backbone of any fund. Sala, now under the auspices of WTP Advisors, will continue to work hand-in-hand with portfolio managers to develop cost effective solutions to serve as the blueprints for successful execution in establishing customized trading infrastructures.
WTP Capital Markets can objectively evaluate and assess each fund's outsourcing requirements. As seasoned professionals, WTP Capital Markets offers a C-Level suite which provides a full range of pro-tem services affording organizations the ability to bridge any gaps brought about by ongoing professional searches or staff turnover.
"We work in concert with our clients to help them make optimal business decisions regarding their infrastructure. Our array of services include all that is required to run the business, such as operations, accounting, technology, investor relations, human resources and facilities management," says Sala.
Sala Associates' hands-on approach learned through years of experience as senior executives in hedge funds and investment banks has been a major differentiator from its competitors.
"In launching this business in 2007, it was my desire to become the consultant of choice in this space. Having sat across the table on the client-side I realized the value of relationships and the true wants and needs of clients. Only a team-based 'roll up your sleeves' attitude can deliver the right solutions which become the fabric of the organizations we work with," says Sala.
Sala has advised and assisted some of the largest investment banks and hedge funds, helping them to significantly reduce costs and bring their staff levels to the 'right size'.
He was an early proponent of Activity Based Costing (ABC) - a way to estimate the actual cost of overhead associated with specific projects, and eliminate those that are unprofitable - and developed and deployed several successful models using ABC as a platform. Throughout Sala's career he has been at the forefront of reengineering engagements and fully believes that WTP Capital Markets will provide him the opportunity to further expand his product offering in this area.
The WTP Capital Markets business model revolves around not only devising a sound strategy, but actually executing the game plan, including building out teams, and transferring knowledge to permanent staff.
"This is why Sala Associates and WTP are a good fit and why we're excited to bring Lou on board," says Minihan. "Lou understands that, as a consultant, it's not just about coming up with a plan, it's necessary to dig in and get your hands dirty in order to make an idea work. This philosophy is what distinguishes WTP Advisors, and is the reason why Lou is so respected in this industry."
