Randy Troy, the founder of Summit Fund Services, discusses his view of the transformation of the financial services industry and why it was clear to him that there was a need for a fund administrator that had both the technology and the expertise to properly administer funds with complex structures and strategies.

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Please introduce yourself, speaking to your professional background.

 

Randy Troy (RT): I began my career over two decades ago in the financial services group at Deloitte, and as expected, the industry looked much different than it does today. I have been fortunate to experience the industry transformation, in senior level positions, from two different perspectives. One perspective from a service provider to the industry and the other from the side of the investment manager. 

 

I’ve served in Chief Financial Officer, President, Vice-Chairman and Managing Director capacities at large, institutional investment firms, and global fund administration companies. I believe this diverse experience has provided me with a unique view of what solutions managers and their investors seek.

 

How would you describe the evolution of the fund administration industry throughout your career? How have changes helped the emergence of new funds coming to the market?

 

RT: The hedge fund industry has seen rapid expansion, which has had an inevitable and substantial impact on those who service funds, mainly fund administrators. In 1990, 610 funds were managing $39 billion. Now nearly 10,000 funds are managing over $3 trillion. That's massive growth in a relatively short period.

 

I’ve seen the development of new financial instruments, the use of more complex fund structures, and a shift in the source of investment allocations away from high net worth individual investors, and toward large institutions.  These institutional investors want more information than just a monthly return.  This, in turn, forced fund administrators to invest heavily in technology.

 

Also, there has been an increase in global regulatory pressure that impacts both managers and service providers alike.  The move to a more technology-focused fund administration solution is a good one, but it has also brought enormous cost pressures.

 

Fund administrators today are a lot closer to the investment manager than ever before, as they are often viewed as an extension of a firm’s back office. This has been a positive development and one which I expect to grow even stronger as they become more relied on for their technology offering and expertise.

 

What does Summit Fund Services bring to the industry? Which client bases do you assist?

 

RT: I’ve been in this industry for a long time, which has allowed me to understand what fund managers and their investors are seeking. I noticed that there was a servicing void for emerging managers with complex strategies or structures.  These are the ‘hard-to-administer’ funds that are too complicated and too small to service properly.  Yes, there are a lot of fund administrators that say they service this client demographic, but something was missing.

 

It was clear to me that there was a need for a fund administration company that had both the technology and the expertise to properly administer funds with complex structures and strategies along with complicated security types. Summit Fund Services is the solution that I believe the industry was lacking.

 

Why did you invest time in helping design a new technology platform? How is it different from other systems currently in the market?

 

RT: I am bringing to the industry a system that uses the latest technology, which is flexible as well as agile. It is considerably faster than any other system on the market. It has better accessibility, allowing us to provide our clients and their investors with the information and reporting they need.

 

GoodForm serves the fund, the manager, and the investor. The system's flexible platform allows for easy accessibility to third-party networks, including risk, pricing, portfolio management, and compliance - putting information at both the fund managers’ and investors’ fingertips. Additionally, GoodForm's straight through processing functionality and automated reconciliation capabilities enable our team to calculate daily NAVs with speed and precision.

 

 

What is your vision for Summit in the next three years?

 

RT: I aspire to build a business of partnerships with fund managers where we deliver services to our clients that solve their problems and exceed their needs. As we continue to grow the Summit team, I'd like the people who join us to be proactive solution providers who, above all else, provide quality work with a warm, responsive, and pleasant demeanor.  White glove service without the expensive cost.  Our people and our clients are our most valuable assets.

 

Where do you believe there will be the most opportunity in the marketplace in the next two to five years?

 

RT: Investment managers need to control resources, and they are looking for operating partners with a broader view on things other than accounting, like middle office services, better technology, regulatory reporting solutions –to name a few. Service providers who build for the future, like Summit, will be well-positioned to provide solutions that both fund managers and investors will require as the industry continues to evolve.

 

 

Reach out to a member of the Summit Fund Services team to learn more about their fund administration solutions. They love showing people their revolutionary technology.