Efficiently managing the costs of global SPV portfolios

22 November 2023 - Against the backdrop of macroeconomic activity, inflation and higher rates resulting in a transactional slowdown, prudent investment managers will be looking to leverage the current market downturn to improve operational efficiency and cost control in their Special Purpose Vehicle (SPV) portfolios.

Typically, there are two main reasons for inefficiencies in SPV administration:

• The first being that SPV administration is often outsourced to different service providers across, and sometimes within, jurisdictions, which inherently complicates the standardization of workflows.
• The second is the ongoing consolidation in the service provider industry. After a service provider’s merger or acquisition, the integration of data, systems, and staff is often a long and complex process that can affect the continuity, quality and efficiency of service delivery to clients.

These operational inefficiencies can lead to significantly higher costs for managers – including service provider fees, audit and tax compliance costs.

The Citco group of companies (Citco) is an independent firm driven purely by organic growth. Our efforts are focused on creating and maximizing operational efficiencies for our clients. We do this by continually strengthening our unmatched operational framework – through hands-on and collaborative relationship management, technological innovations, streamlining processes and improving the efficiency of data management. Citco’s SOC 1 Type 2 accreditation for accounting workflows is just one example of how we provide our clients with rigorous quality control and standardized procedures.

Within our fully integrated SPV service offering, we help manage costs and provide comprehensive administrative support for clients’ sizeable SPV portfolios.

Since 1985, Citco has offered banking services through the Citco Banks; these are highly-regulated and risk-adverse transactional banks that only offer banking services to Citco clients, including bank account services to SPVs.