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Reconciliation headaches SOLVED

$8B hedge fund streamlines its reconciliations with middle and back-office co-sourcing solution from Linedata Global Services.

Managing Director, $8B hedge fund

“Linedata’s robust yet flexible reconciliation solution is instrumental in helping our operations keep pace with our growth. As a virtual extension of our team, Linedata’s service is excellent, and their reliability and accuracy under deadline pressure is highly appreciated.”

To solve these challenges, the fund turned to Linedata’s reconciliation solution

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Client Challenges

  • Manual, Excel-based reconciliation processes
  • Inability to meet daily 8AM reconciliation deadline
  • High number of breaks due to human error

Our Solution

  • Daily reconciliation service: Position, Cash and Transactions
  • Secure client access to research and fix breaks
  • Daily management-level dashboard reporting

Client Benefits

  • Fully reconciled investment book to start each day
  • 24-hour coverage from dedicated Linedata team
  • Ability to adapt and scale as business demands evolve

Starting each day with verified cash and positions is a major operational challenge for many firms, particularly those reliant on manual, Excel-based practices.

Our client, a multi-strategy hedge fund, regularly failed to meet its 8 AM reconciliation deadlines, although its analysts started work at 5 AM. Tight deadlines left little time to double-check their work, and manual processes and human error resulted in numerous daily breaks. The situation was untenable, particularly for a firm with major growth ambitions.

To solve these challenges, the fund turned to Linedata’s reconciliation solution. We assembled a dedicated team of operations professionals, based in New York and offshore, whose experience is tailored to the client’s requirements. They use our proprietary, automated reconciliation tool and transparent, fully documented processes to provide our client with accurate, three-way reconciliation before the start of each New York business day.

The fund’s executives can manage and monitor the reconciliation process with management-level dashboard reporting that includes completion status, aging of breaks, material issues, and time series/trend analysis. The fund’s operations team also has direct access to our reconciliation platform to review, modify and research breaks. Our professionals are an extension of the client’s team and collaborate to assist and resolve breaks.

Linedata’s reconciliation solution, part of our Middle and Back Office Services offering, includes position level (quantity and market value), cash, transactions and P&L reconciliations between the fund’s accounting system, its administrators, and the street (prime brokers, OTC counterparties, and custodians). Our follow-the-sun model provides 5x24 support.

Our client has said goodbye to daily reconciliation headaches and scaled its business significantly while reducing risk from error-prone manual processes.

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