Start-up managers need to consider vendor management

Vendor management has become a key component of enterprise risk management (ERM) for today’s budding new hedge fund managers. This was not necessarily the case a couple of years ago, but with the introduction of the Alternative Investment Fund Managers Directive (AIFMD) the landscape has changed dramatically. Now, start-up managers, keen to get their strategies up and running without necessarily becoming registered AIFMs from day one and reduce initial costs, are turning to fund platforms. The problem is, there is such a plethora of platforms to choose from.