Under the agreement, Fund Recs — which develops cloud-based reconciliation software for the funds industry and which is based out of the Dublin Institute of Technology Hothouse — will provide trade processing for Capita’s fund business in Ireland.
Commenting on the deal, Fund Recs director, Alan Meaney said: “We are excited to be working with Capita Asset Services and are delighted they’ve chosen Fund Recs as their trade processing solution.
“Our experience and technology are enabling Capita Asset Services transition to a straight-through processing model.
“This automated model helps reduce operational risk and will also provide additional transparency.
“As an innovation partner we’re actively working with firms similar to Capita Asset Services to create value by finding better ways to do things and also explore new services to drive revenue growth,” said Mr Meaney.
In April, Ireland’s fund administration industry hit an all-time high of over €2.8 trillion in assets under administration and now services 40% of global hedge fund assets. As the world’s largest fund administration centre, the market here offers huge potential growth for Fund Recs whose software automates the highly-manual process.
The software provided by Fund Recs will be used to automatically capture trades from fund managers and post them to Capita’s internal fund accounting system.
Having already secured initial investment from Enterprise Ireland since it was founded, the company is accelerating its business in Wayra, one of Ireland’s leading digital start-up accelerators.
The funds industry also employs more than 12,000 people in regional hubs such as Limerick and Cork and predominantly in Dublin’s IFSC. Capita alone employs more than 3,000 people in Ireland having been begun its operations in Belfast in 1999.
Commenting on yesterday’s announcement, Capita Financial Administrators Ireland senior manager, Paul Burke said: “Fund Recs was successful in our competitive trade capture RFP process, primarily for two reasons; fully understanding their clients’ requirements and a user-friendly solution that reduces manual risk. Fund Recs commitment to the process should enhance Capita’s operational model.”