The alternative investment community in California currently includes over 1,000 firms with approximately $1 trillion in assets under management. California is a strong and growing venue for alternative investment firms, who are attracted to the state due to its legacy of innovation, access to the intellectual capital of top academic institutions, deep pool of talent, and proximity to global investment opportunities in the Asia Pacific region. The following resources are provided as a guide to key industry issues and the investment landscape outlook.

New!!   CalALTs 2018 Operational Insights in Alternative Funds - issued March 2018 [Read Full Report]


2018 Operational Insights in Alternative Funds

March 2018

On March 20, 2018, CalALTs released a white paper entitled: "2018 Operational Insights in Alternative Funds." The paper focuses on: marketing and pay to play developments, emerging manager operations and operational due diligence, private funds with one or no operations professionals, corporate culture and organizational architecture, the current state of expense allocations, the challenges with big data, and cryptocurrencies and institutional investors. This paper is a product of the CalALTs Best Practices Committee whose members include: Joshua Barlow, PAAMCO; Frank Perez, Makena Capital Management; Michelle Bergren, Camden Asset Management L.P.; Sasha Burstein, K&L Gates, LLP; Kimberly Durland, Goldman Sachs & Co.; Jarod Winters, Sunrise Capital Partners, LLC; and Lauri Martin Haas, PRISM, LLC, who is the Chair of the Best Practices Committee.


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Best Practices - Hedge Fund and Private Equity Operations

March 2017

The private funds industry has developed significantly in operational sophistication over the past 10 years. Today, the investor wish list includes the existence of an independent administrator, an internal CFO, segregation of duties, employee background checks, centralized operations, documented policies and procedures, a fiscal budget, an internal CCO, an external regulatory consultant, a clean regulatory history, formal compliance training, a tested disaster recovery plan, a cyber security plan, and related staff training.


In terms of internal staffing, best practices call for:
  • a seasoned fund accountant to act as Chief Financial Officer
  • a securities lawyer or regulatory professional acting as Chief Compliance Officer
  • an experienced operations person with knowledge of settlement, reconciliation, and trade break issues, and
  • coverage for back office personnel when they are on vacation


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Preqin Special Report: Alternative Assets in California

September 2016

While most noted for its venture capital sector, the Californian alternatives industry is a growing and diverse marketplace. The number of active* private capital fund managers based in the region has more than trebled since the turn of the millennium, with 949 active fund managers currently managing or raising vehicles. Furthermore, hedge fund managers are continuing to set up shop in California: 233 new hedge fund managers have been incepted since 2010, contributing to the launch of more than 750 new hedge funds.

It is not just the number of firms that have increased; the assets under management of the private capital industry have grown from $177bn in 2000 to just over half a trillion dollars by the end of 2015, and when compounded with the $268bn in total assets of Californian hedge fund managers, the state is one of the most prominent alternatives market in the US. Preqin is the alternative assets industry’s leading source of data and intelligence. Our products and services are utilized by more than 40,000 professionals located in over 90 countries for a range of activities including investor relations, fundraising and marketing, and market research. We hope you fi nd this report useful, and welcome any feedback you may have.


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Industry Overview & Outlook

Paul Hastings Hedge Fund Report (Spring 2014)


SEI & Greenwich Advisers’ Fifth Annual Global Survey of Institutional Hedge Fund Investors – Part I


Rothstein Kass Survey: Women in Alternative Investments – Industry Outlook and Trends – November 2011


Pillsbury 2012 Annual Compliance Obligations: What You Need to Know


Educational Series


In early 2013, CalALTs Board Member and Associate Professor in the Finance and Business Economics Department at the University of Southern California, Mick Swartz, Ph.D. (Finance), CAIA, developed the following series of educational white papers related to the alternative asset management community, exclusive to CalALTs.

Vol. 1 - Leverage

Vol. 2 - Transparency

Vol. 3 - Should Risk Management Become Uncertainty Management?

Vol. 4 - Separately Managed Accounts

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