SS&C Expands Fund Administration Business in India with GIFT City Office

Rhea-AI Summary

SS&C Technologies Holdings (NASDAQ: SSNC) is expanding its fund administration business in India by opening a new office in Gujarat International Finance Tec-City (GIFT City). Licensed by the International Financial Services Centres Authority, SS&C GlobeOp will offer fund administration and compliance services to alternative investment funds and other funds in the zone. Arun Baldwa will lead the office. SS&C manages over $19 billion in assets in India and has 12 offices employing 7,500 staff. This expansion aims to capitalize on the rapid growth of the fund management industry in GIFT City, which has attracted over 80 fund managers with commitments exceeding $30 billion in the past three years.

Positive

• SS&C's expansion into GIFT City could attract more clients and increase assets under administration.
• Licensed by the International Financial Services Centres Authority, adding credibility.
• SS&C manages more than $19 billion in assets in India, showcasing strong market presence.
• 12 offices and 7,500 employees in India indicate a solid operational foundation.
• GIFT City has seen rapid growth with over $30 billion in commitments, offering significant opportunities.

Negative

• The expansion involves operational costs that may impact short-term profitability.
• SS&C's heavy reliance on the Indian market exposes it to regional economic and regulatory risks.
• Competition in GIFT City is increasing, which could pressure SS&C’s market share.
• Uncertainty about the financial impact of the new office on SS&C's overall performance.

Insights

Financial Analyst

SS&C Technologies' expansion into GIFT City significantly enhances its position within the rapidly growing Indian financial market. By establishing an office in this economic opportunity zone, SS&C aims to leverage tax benefits and a specialized regulatory environment tailored for financial services. This strategic move could optimize operational costs and foster closer client relationships. However, the initial setup costs and regulatory compliance efforts might impact short-term profitability. Given that SS&C already manages assets worth $19 billion in India, the addition of GIFT City operations is likely to consolidate their market leadership. For retail investors, this indicates a proactive growth strategy, but they should monitor the execution and cost management in the short term.

Market Research Analyst

GIFT City has been positioned as a competitive hub for fund management, with over $30 billion in commitments from more than 80 fund managers in the last three years. For SS&C, expanding into this zone offers a unique opportunity to tap into a concentrated market of alternative investment funds (AIFs). The decision to license SS&C GlobeOp underscores the company's reputation and operational capabilities in servicing complex fund structures. This move may attract more foreign and domestic clients seeking expertise and reliability in fund administration, thereby enhancing SS&C's revenue streams in the long term. However, investors should consider the competitive landscape and whether SS&C can maintain its distinct advantage as more players enter GIFT City.

Regulatory Expert

The licensing of SS&C under the International Financial Services Centres Authority (IFSCA) to provide fund administration services in GIFT City is pivotal. It implies compliance with stringent regulatory standards and potential benefits from favorable tax regimes. For investors, understanding the regulatory landscape is important because it impacts operational efficiency and profitability. In GIFT City, firms benefit from reduced tax liabilities, which can enhance net returns. However, the long-term success of this expansion will depend on SS&C's ability to navigate complex regulations and meet compliance requirements. Any regulatory hurdles could potentially impact the bottom line, although the prospects look promising given SS&C's historical compliance record.

WINDSOR, Conn., June 12, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) is expanding its global footprint with a new office in India's Gujarat International Finance Tec-City (GIFT City). The International Financial Services Centres Authority has licensed SS&C GlobeOp to provide fund administration and compliance services to alternative investment funds (AIFs) and other funds domiciled in the economic opportunity zone. 

SS&C has more than $19 billion in assets under administration in India. Arun Baldwa will lead the GIFT City office.

Kedaara Capital and Multiples Alternate Asset Management are among SS&C's clients with AIFs in GIFT City, with more in the pipeline.

"There is tremendous opportunity in GIFT City, and we are excited to be part of it," said a representative from Multiples Alternate Asset Management.

"SS&C's experience as the world's leading alternative funds administrator makes the firm a great partner to help support us as we grow. We look forward to working with SS&C's team on the ground to support our daily operations," said a representative for Kedaara Capital.  

The fund administration offering in GIFT City complements SS&C's extensive fund administration business across India. SS&C first expanded into the country in 2003. Among Indian fund administration clients, SS&C services more than $19 billion in assets under administration. SS&C has 12 offices in India and employs 7,500 staffers servicing clients across fund services, transfer agency and brokerage. Arun Baldwa, Senior Director, will lead the new office in GIFT City.

"We are excited to grow our presence in India further with the new GIFT City operating license and on-the-ground presence," said Bhagesh Malde, Head of SS&C GlobeOp. "As the world's leading alternatives fund administrator with more than $2 trillion in assets under administration, we have experience handling all operational needs for various intricate fund structures across domiciles and regulatory and tax regimes. An on-the-ground presence in GIFT City further cements our deep commitment to India. We look forward to working even closer with our clients as they set up funds in this exciting new epicenter of global finance and IT."

The fund management industry has been growing rapidly in GIFT City, with many domestic and foreign firms taking advantage of the benefits. More than 80 fund managers with commitments of more than USD30 billion have set up in the economic opportunity zone in the last 3 years, according to IFSCA.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

Follow SS&C on Twitter, LinkedIn and Facebook.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ssc-expands-fund-administration-business-in-india-with-gift-city-office-302170088.html

SOURCE SS&C

FAQ

What is SS&C Technologies' new expansion?

SS&C Technologies is expanding its business by opening a new office in Gujarat International Finance Tec-City (GIFT City), India.

What services will SS&C provide in GIFT City?

SS&C will offer fund administration and compliance services to alternative investment funds and other funds domiciled in GIFT City.

Who will lead SS&C's new GIFT City office?

Arun Baldwa, Senior Director, will lead SS&C's new office in GIFT City.

How much assets does SS&C manage in India?

SS&C manages over $19 billion in assets under administration in India.

What opportunities does GIFT City offer?

GIFT City offers significant growth opportunities with over 80 fund managers and $30 billion in commitments established in the last three years.