State Street is buying a majority stake in InfraHedge, a UK-based firm that provides a platform for institutional investors to invest money in hedge funds through managed accounts.
State Street says the product offers significant flexibility alongside an independent governance and risk management infrastructure. The firm hopes this will encourage more institutional clients to invest in hedge funds because it will provide them with a level of transparency and reporting that is on a par with other asset classes.
State Street will offer the product alongside its suite of alternative investment solutions aimed at global institutional investors such as pension funds and wealth managers.
Akshaya Bhargava, founder and chief executive officer of InfraHedge, said State Street shared a “vision of making hedge fund investing more controlled, transparent and cost effective for institutional investors”.
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