LIQD Overview
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Liquid Holdings Group provides alternative asset managers with a modern operating system through their proprietary cloud-based platform. Their platform-as-a-service offering includes integrated trading, risk management, reporting and data management solutions. They aim to help funds modernize their operations, reduce costs, scale more efficiently and gain a competitive advantage over legacy solutions. Case studies show their clients achieving annual savings of up to 89% of technology and operations expenses by outsourcing to Liquid Holdings Group versus maintaining systems in-house.
LIQD Overview
- 2. 息 Liquid Holdings Group, Inc. 2014 1 As of the end of Q2 2014 2 Third Party Development Staff 3 As of August 18, 2014 Simplify success for todays alternative asset manager 2 OUR MANTRA
- 3. LIQUID AT A GLANCE 息 Liquid Holdings Group, Inc. 2014 1 As of the end of Q2 2014 2 Third Party Development Staff 3 As of August 18, 2014 1 Third Party Development Staff 2 As of December 1, 2014; includes 60 full-time employees and 30 full-time technology consultants 3 People 90 Employees Offices in NYC, Hoboken, Aventura and Romania 1 Development: 10+ years average experience Processes Platform-as-a-service Data-as-a-service Connectivity-as-a-service Infrastructure-as-a-service Products Liquid Platform - LiquidTradeSM - LiquidMetrics速 - LiquidMobileSM LIQUID OFFICE REMOTE LIQUID EMPLOYEE(S)
- 4. Connectivity-as-a-Service: To counterparties and trading venues without independent infrastructure costs 01 Data-as-a-Service: Historical repository of and real-time access to all portfolio and market data; end-of-day services to ensure accuracy 02 Software-as-a-Service: Multi-strategy trading, risk management and reporting capabilities accessible everywhere 03 04 Redefining the concepts of mission-critical and vendor 4 THE NEXT WAVE OF PREFERRED PROVIDERS Infrastructure-as-a-Service: Business continuity and disaster recovery; seamless upgrades and maintenance without interruption
- 5. LIQUID A MODERN HF OPERATING SYSTEM 1. Industrys First OERMS 2. With Managed Services 3. Through our Proprietary Cloud 4. Leveraging Next Gen, Open Technology 5 PLATFORMTHE LIQUID A high value alternative to legacy solutions, delivering:
- 6. MODERN APPROACHES TO SERVICING HEDGE FUNDS
- 7. Performance and risk analysis, client reporting and shadow NAV LIQUIDMETRICS速 I. SOFTWARE-AS-A-SERVICE CONVERGENCE OF REAL-TIME FRONT-OFFICE CONTROLS APPLICATION DESCRIPTION 7 Broker-neutral order and execution management systemLIQUIDTRADE Web-optimized dashboards and reports on any mobile deviceLIQUIDMOBILE
- 8. OUR SOLUTIONS: BROKER-NEUTRAL OEMS LIQUIDTRADE Integrates the speed, workflow and trading tools of broker-neutral EMS with OMS capabilities: Select and trade single and basket orders Choose best broker(s) for your strategy Route trades to the execution venue of your choice Analyze performance and compliance in real- time Allocate trades to accounts in compliant manner Access full transactions history for deeper analysis 8
- 9. OUR SOLUTIONS: REAL-TIME RISK & REPORTING LIQUIDMETRICS速 Real-time dashboards and reports for continuous portfolio monitoring, and investor reporting: Extensive library of risk, performance, and P&L statistics and reports Isolate drivers of performance Identify and mitigate potentially adverse events Automate client reporting Crosscheck fund admin with shadow NAV 9
- 10. 10 OUR SOLUTIONS: ANYTIME MONITORING LIQUIDMOBILE Mobile-optimized investment management platform: View real-time portfolio and risk analytics for immediate insight on the markets impact on your investments Stress test potential scenarios to answer investor questions, e.g. How does the price- drop in oil affect my investments? Create custom dashboards and reports to address the most specific investor mandates
- 11. 11 Outsourced services that enable firms to rapidly scale the business Reduce Capital ExpenseRe-allocate capital from ops to the front-office with outsourced start- and end-of-day processes Ensures data integrity and accuracy for analysis and reporting purposes Eliminate Manual ProcessesOn-board new locations, users, and portfolio products to take advantage of new opportunities Faster Time to Market Business Benefits 1. End-of-Day Reporting 2. Data Consumption 3. Trade & Position Reconciliation 4. Shadow NAV II. DATA-AS-A-SERVICE
- 12. 12 III. CONNECTIVITY-AS-A-SERVICE Simplified connectivity to growing number of liquidity venues and market data feeds in a broker-neutral environment Access Range of Brokers Expedites connectivity to brokers to take advantage of market opportunities Reduces dependence on a single partner through ability to execute and clear trades with custodian of choice Custody Neutral Eliminates latency and multiple points of failure that can erode TCA Direct-Fiber Connect to Markets Business Benefits EXECUTING BROKERS: BAML, Barclays, CITI, CS, Deutsche, Fidelity, Goldman, Instinet, Morgan Stanley, UBS, and CLEARING BAML, Bank of New York, ConvergEx, Credit Suisse, GPP, JPM, MS, Nomura, SS&C, UBS, others MARKET DATA FEEDS: ACTIV, Thomson Reuters
- 13. 13 IV. INFRASTRUCTURE-AS-A-SERVICE Outsourced data center, equipment and maintenance to safeguard mission-critical workflows and data; ensures the highest levels of security and operational reliability 1. Trading Operations Equipment 2. Central Data Repository 3. Redundant Data Centers 4. Automated Upgrades Security Controls access to equipment and data to combat access to services and data Ensures optimal speed and performance for low-latency investing and analysis Consistent PerformanceProven 99.9999% uptime with full back-up systems and redundancy Improved Business Continuity Business Benefits Maintains portfolio data since inception for analysis and reporting purposes Unlimited Data Repository
- 14. 14 A COMPARATIVE VIEW MODERN VS. LEGACY APPROACHES TO SERVICING HEDGE FUNDS & THEIR INVESTORS OMSEMS Pre-Trade Risk & Compliance Portfolio & Risk Analytics Shadow NAVReal-Time Reporting Liquid Platform Data Mgmt Services Legacy Suite Point Solutions Multi-Tenant Cloud Multi-Asset Coverage This is (now) a cloud first and mobile first world.The industry does not respect tradition, it only respects innovation. Microsoft CEO
- 15. REAL SOLUTIONS 15 REAL CLIENTS $2.5B Boston-Based RIA Running 3 funds; preparing to launch a 4th Were evaluating OMS when we uncovered drivers: Real-time performance and risk statistics Ability to run compliance rules and client reports $600M Activist Hedge Fund Launched in 2013; tripledAUM in 18 months Requirements: integratedOMS/EMS/PMS with reporting Referred to us by their largest investor $100M New Launch HealthCare Focus$800M Options-Based Asset Manager . . .. . .. Management team came from Soros & SAC Capital Priming at Goldman and Morgan Stanley Required EMS/PMS with real-time risk and reporting to actively manage investments Established fund built and managed in-house investment systems Infrastructure did not keep pace with markets Scalability,TCO and the ability to launch new products were an issue
- 16. 息 Liquid Holdings Group, Inc. 2014 1 As of the end of Q2 2014 2 Third Party Development Staff 3 As of August 18, 2014 LiquidMobile provides my investment team with modern, real-time analytics to proactively manage our investments and client relationships. Im in and out of two particular dashboards constantly, whether Im at my desk or on my iPad, so I have a handle on the business at all times. 16 Pablo Garcia, Founding Partner, Goldwater CLIENT TESTIMONIAL
- 17. ROI OF INVESTING IN INFRASTRUCTURE INSTITUTIONALIZED MANAGER $800M Options-Based Manager Dynamic Funds + Managed Accounts Very Established; 26YearTrack Record CRITICAL BUSINESS ISSUES Disparate, Non Real-Time Systems Multiple Points of Failure Inability to Expand into New Markets HighTCO Single End-to-End Platform Market-Tested Options Capabilities Proprietary Cloud; Managed Services Eliminate Systems and Ops Headcount 89% Annual Savings vs Legacy Approach . l . .. . L .. VALUE OF MODERNROI 17 $129K Alternative孫 Modern 1 Average 3rd party expenses by % of AUM; Citi Prime Finance Expense Survey TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
- 18. ROI OF INVESTING IN INFRASTRUCTURE Allocated $140K per annum back to the front- office ROI 18 TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS $60K Alternative Modern $200K
- 19. ROI OF INVESTING IN INFRASTRUCTURE EMERGING MANAGER $250M L/S Equity Fund 3 Funds + ManagedAccounts Strong Pedigree; 5YearTrack Record CRITICAL ISSUES Analytics and investor reporting; Mobile access Non real-time systems that do not synch Tech costs outpaced growth & fees Single end-to-end platform Integrated real-time risk analytics Limited IT; No operations footprint Institutionalized to raise more assets Allocate $140K per annum back to the front-office .. . . . L .. 1 Technology and Operations Expenses as Reported by Liquid Holdings Client VALUE OF MODERNROI 19TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS $60K Alternative孫 Modern $200K
- 20. ROI OF INVESTING IN INFRASTRUCTURE START-UP $40M Event Driven Fund 3 Employees: CIO, HeadTrader, CFO CIO & HeadTrader: 10-year track record CRITICAL ISSUESAT LAUNCH Real-time workflows to synch front-office Present-day & future transparency Appear institutional to pension funds Front-office system scales as business grows Support different fund structures Automate middle-office with repeatable controls Tech and ops expenses align with cash flow Allocate $90K per annum back to the front-office .. . . . L .. 1 Technology and Operations Expenses as Reported by Liquid Holdings Client VALUE OF MODERNROI 20 $40K Alternative孫 Modern $130K TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
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Editor's Notes
- Interesting value: value of what we are saying. Because we do all of this. Opportunity to save $$$ / reallocated toward additional front-office. Inside circle 30%-- within 12 months, increased assets by 30%....
- Interesting value: value of what we are saying. Because we do all of this. Opportunity to save $$$ / reallocated toward additional front-office. Inside circle 30%-- within 12 months, increased assets by 30%....
- Interesting value: value of what we are saying. Because we do all of this. Opportunity to save $$$ / reallocated toward additional front-office. In circle 120% growth to $90 million dollar manager