Convergence Inc. Announces Its Alternative Asset Management Industry Q1 2015-2016 Year over Year Update

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Report Provides Key Data Findings on Investment Advisors

The key to our data set is the completeness and structure as well as the independent sourcing and the time series element.

Convergence, a leading data analytics and advisory services company, announces its Q1 2016 update of the State of the Union of the Alternative Asset Management Industry. The report focuses on business trends amongst alternative asset managers, related assessments of changes in operating complexity and risk, and changes in operating productivity.

The data is sourced from SEC filings and enriched to provide a unique view into the infrastructure of over 16,000 Registered Investment Advisors.

Some headlines from the paper include:

Alternative Asset Management Firms Continue to Grow

  • Alternative asset advisor growth of 10% with private fund asset growth of 3% and private fund count growth of 11% - the greatest increase attributed to quantitative and private equity managers
  • Infrastructure operating complexity growth of 4%
  • Growth in assets, funds and operating complexity resulting in headcount growth of 13%
  • Regulatory oversight continues to intensify with the number of regulatory actions disclosed increasing 11%
  • The manager service provider index (service providers by manager) declined slightly
  • Administration of assets – 56% dominated by top 10 – all other administrators at 18% - while self-administration represents the remaining 26%
  • Private equity funds continued to dominate the self-administration market
  • The inaugural manager productivity index was launched resulting in a productivity decline of 3%
  • Lastly, we will be publishing quarterly administrator and auditor league tables measured by private fund assets and number of private funds

"The key to our data set is the completeness and structure as well as the independent sourcing and the time series element. Convergence will continue to monitor this ever changing industry providing empirical data, fueled by research and observations," said John Phinney, Chairman and Co-President of Convergence.

"Convergence's unique State of the Union report and insight allows Managers and Advisors to put increased focus on defining their current operating metrics, establish clear operations-related objectives, and see a clearer path to a company's growth plans. It will provide service providers a 'best fit' analyses of the marketplace and Investors with an additional layer of due diligence data," added George Evans, Co- President.

To access the Convergence Q1 Alternative Asset Management Industry Update Research Tab click here.

For additional industry insight and information from Convergence, visit:

About Convergence Inc.

Convergence provides analytical data, benchmarking, custom research and advisory services to the Alternative Asset Management industry. The firm's data is unique because it is enriched by subject matter experts and provides best practices based on carefully selected peers. Convergence focuses on the Manager/Advisor infrastructure including Fund and Management Company accounting, investment operations, risk management, marketing, investor relations, tax, compliance, technology and the service provider infrastructure. Clients include asset managers, administrators, audit firms, financial technology firms, investment management consultants, prime brokers, custodians, investors, compliance firms, recruiting firms, colleges and universities and Institutional Investors. The Convergence approach creates value for clients by helping them research, understand infrastructure expenses, identify opportunities to increase market share, ensure practices are consistent with best in class peers, select service providers that best support strategic business goals, enhance investor due diligence efforts, perform difficult custom research and provide ongoing education.

For more information visit: or contact George Evans at or 215-704-7100.

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