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Top Tier Investment Manager
Sourcing Complex Financial Operations, Technology, Services, Banks & Brokers
Business Issue: An established Investment Manager wanted sourcing to cover a larger area of spend including corporate, fund and complex front, middle and back office expenses.
Results: $50 million+ in savings; Rationalized supplier base; Mitigated counter-party risk; Optimized Service Level Agreements; Changed the supplier engagement paradigm
Major Buy / Sell Side Broker
Business Issue: A $10 Billion group of hedge funds had engaged a single Prime Broker for its Equity and Multi-Strategy funds resulting in risk , service level benchmarking and financing issues.
Solution: Instituted sourcing process to achieve $8 million in additional returns / cost reduction; Instituted an SLA with creating a more efficient, risk mitigated and time sensitive alternatives operations
Introduced a multi-prime environment creating ongoing competition, financing benchmarking and a larger “box” while reducing operational and counter-party risk; Aligned prime broker strengths with fund strategies
Global Investment Bank (Bank Holding Company)
Outsourcing Remediation and Quality Assurance
Issue: A KPO arrangement with two off-shore providers was riddled with quality issues and inefficiencies.
Solution: Reengineered processes and instilled quality measures to maximize the outsourcing relationship value.
Results: Tangible improvements in quality while reducing the firm’s unanticipated indirect costs of the outsourcing arrangement.
Business Process Outsourcing (BPO) - Defined Contribution Operations
Issue: Cost pressures, location shut-down and legacy technology made the DC operations inefficient and expensive.
Solution: Conducted feasibility study and tabulated the financial analysis of outsourcing the processing unit, call center and recordkeeping platform to an on-shore service provider. The project consisted of managing a cross functional team, conducting a complex RFP and compiling thorough financial and impact analysis.
Results: Outsourced the business processes, operations and technology to an onshore provider resulting in over $80 million in savings over the 5 year term of the contract.
Mid-size Broker Dealer
Brokerage Correspondent Clearing Services Consolidation
Issue: After an acquisition, the firm was faced with two clearing companies for its broker dealer.
Solution: Led a cross functional team, including top executives, in determining the feasibility and strategy of consolidating two outside brokerage clearing platforms onto one. After deep analysis, presented clear and concise direction to the firm including upfront and ongoing costs, potential risks and benefits. Negotiated deals.
Results: $6.4 million in savings and cost avoidance in year 1 and a 20% reduction ($2.7 million) in ongoing costs.
Print Statements and Confirms
Issue: Reliable ingrained supplier but high costs.
Solution: Benchmark rate and attempt to renegotiate fees without a formal sourcing event.
Results: $400,000 in savings, institution of SLA and business continuity plan.