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StoverDowns Case Studies:
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
Dealer
Brokerage Processing & Operations
Business Issue:
An established brokerage processing relationship was
costing the firm in excess of $20 million annually.
Solution:
Conducted sourcing event realizing $10
million in savings year 1 and multi- millions in cost
avoidance in the following years;
Instituted an SLA with penalties creating a more
efficient, risk mitigated and time sensitive back
office; Set the platform for an alternative Broker
Dealer structure that may result in $10 million in
additional savings annually while enhancing the ability
to retain assets
Hedge Fund
Prime Brokerage
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.
Global 50
Insurance Company
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.
Investment Manager
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.
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