State Street Corporation has opened an office in Shanghai to provide alternative investment servicing solutions to support its strategic hedge fund clients as they expand their business in China. It will also support client and business development initiatives in the mainland for State Street’s Alternative Investment Solutions (AIS) business in the private equity and real estate asset classes.
Carol Hall, senior managing director of State Street’s AIS team, commented, “We believe our approach to providing integrated investment servicing solutions is well-suited to China’s growing market, where domestic institutional investors have become more sophisticated and are gaining more exposure abroad. These investors are looking for foreign partners with global capabilities combined with local knowledge and expertise.”
State Street’s team in Shanghai will report to Eric Chow, head of relationship management for State Street’s AIS business in Asia-Pacific.
State Street opened its technology center in Hangzhou China in 2008, its Beijing branch in 2011, and State Street Global Advisors announced a joint venture with Zhongrong International Trust Co. last year.
Chow added, “We expect the growth of China’s foreign reserves and the increasing appeal of global asset allocation will support our growth plans. Over the long-term, we would like to continue expanding our business in the region in accordance with our clients’ needs and Chinese regulations.”
In a global survey of alternative managers conducted by State Street in collaboration with Preqin in July last year, nearly one in five fund managers surveyed said they plan to expand into new regions by 2018 and 10% said they would acquire another business in the next five years.
