BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE:STT), the world's leading provider of
financial services to institutional investors, today released two papers
on alternative investments as part of its Vision series of
thought-leadership reports.
The companion Vision papers examine two key components of alternative
investments, hedge funds and private equity, and their future prospects
amid the global economic downturn.
While both industries have been hard-hit by the financial crisis, they
will likely adapt to the changed investment environment and continue to
provide significant long-term opportunities for institutional investors,
according to State Street.
"With so much debate within these sectors as complexity has heightened
over the past year, we want to help identify the actual market
conditions and trends that will determine the future of hedge funds and
private equity," said Jack Klinck, executive vice president and global
head of State Street's Alternative Investment Solutions team. "The
research and insights presented in these reports will help institutional
investors as they make their investing decisions."
"New Views of the Hedge Fund Industry" cites two major trends
affecting the industry: a migration to third-party administration and
custody services and increased regulatory oversight. While hedge fund
redemptions are expected to continue through 2009, according to the
report, "anecdotal evidence suggests that investors are starting to
regain confidence."
"The hedge fund industry will emerge from the financial crisis -
smaller, in terms of the number of funds, but eventually larger in terms
of assets under management," the report states.
State Street's second Vision paper, "Private Equity at the Cross
Roads," notes that although the industry is currently under pressure
from the financial crisis and recession, "many believe that private
equity is about to enter a new phase of more sustainable growth. Over
the long-term, investors and governments will look to private equity for
its significant capital resources, management expertise, and high risk
tolerance to help restore economic strength as impaired assets are wound
down and fresh investments are required for new and expanding
businesses."
The two Vision papers draw on State Street's extensive knowledge of
hedge funds and private equity servicing. State Street's hedge fund and
private equity teams are part of its Alternative Investment Solutions
group, which includes more than 2,200 employees worldwide.
With approximately $252 billion in hedge fund assets as of March 31,
2009, State Street provides a complete set of servicing and management
solutions for hedge funds, including recordkeeping, fund accounting,
valuation, risk management and regulatory reporting.
In private equity, State Street provides full-service fund
administration services to more than 400 primary funds with total assets
exceeding $137 billion.
To obtain copies of the Vision papers or for more information, members
of the press should contact publicrelations@statestreet.com.
All other requests should be directed to vision@statestreet.com.
Previous reports in State Street's proprietary Vision series have
addressed a range of topics, including the pensions industry, investment
operations outsourcing, sovereign wealth funds, the insurance industry,
and Islamic finance.
About State Street
State Street Corporation (NYSE: STT) is the world's leading provider of
financial services to institutional investors including investment
servicing, investment management and investment research and trading.
With $11.3 trillion in assets under custody and $1.4 trillion in assets
under management at March 31, 2009, State Street operates in 27
countries and more than 100 geographic markets worldwide. For more
information, visit State Street's web site at www.statestreet.com.
Source: State Street Corporation
Contact: State Street Corporation
Carolyn Cichon, + 1-617-664-8672