Alter Domus, a fund and corporate services provider focused on the alternative investment industry, has recently expanded its service offerings to include the administration of open-ended private market funds. Announced in a press release on Thursday 4 January 2024, this expansion is a direct response to the growing demand from fund sponsors who are keen to take advantage of the increasing democratisation of private assets, said the firm.
The new capabilities are designed to support the launch and ongoing management of open-ended private market funds and closed-ended private market funds with liquidity management features, including European long-term investment funds (Eltifs).
According to Alter Domus, this expansion is driven by various factors, including a rise in retail demand for non-traditional assets and significant regulatory changes within the EU, US and UK. These changes are aimed at broadening access to private market investments. Consequently, these developments have been instrumental in facilitating the democratisation of alternative funds, leading to a substantial increase in client demand for managing open-ended funds.
For Luxembourg-based funds, Alter Domus acts directly as a registered transfer agent. In North America and the UK, the company partners with leading transfer agent systems to deliver its services.
The newly introduced open-ended fund solution also encompasses a range of services such as investor and transfer agency services, investor and regulatory reporting, fund accounting, cash management, capital administration and tax services.
Key enhancements of the new service include the ability to support more frequent net asset value calculations and more streamlined settlement processes, the company stated. The solution also provides increased connectivity to distribution networks for trade settlements and improved functionality to manage complex distribution channels, including individual investors and wealth advisers. Additionally, it features enhanced investor and regulatory reporting capabilities to address the increased volume of liquidity events, stated the press release.
Doug Hart, chief executive officer of Alter Domus, emphasised the growing interest of individual investors in private assets in the firm’s announcement. He noted that regulatory changes, including the Eltif 2.0 in the EU and the redefinition of accredited investors in the US, are creating significant opportunities for their clients to reach a broader investor base.
As of March 2023, Alter Domus employed 1,075 people in Luxembourg.