NEW YORK & MINNEAPOLIS–(BUSINESS WIRE)–Dec. 10, 2003–Capco, the global financial services and technology solutions provider, announces the completion of an advisory engagement to assist in thelaunch of Black River Asset Management LLC (Black River), an alternative asset management company recently formed by Cargill’s Global Capital Markets (GCM). The formation of this new entity is partof Cargill’s plan to leverage its proprietary trading expertise by creating alternative investment products for institutional investors.
Capco assisted Cargill in designing and implementing the operational support for Black River, which will be based on the capabilities of Cargill’s Global Capital Markets. This included hedge fund operations, technology, and business control infrastructure, as well as assisting in the evaluation and selection of third party vendors for both technology and services.
“Capco’s in-depth understanding of the operational and control requirements of hedge funds enabled us to quickly and effectively establish a world class infrastructure for supporting Black River,” said Kok-Ying Lee, head of operations and financial control for Black River. “We believe that our 19-year history of trading global markets through multiple market cycles and risk events, our global reach in both developed and emerging markets and our well established global administration and risk management functions will provide our investors with attractive alternative investment products.”
“Cargill has very strong business, operations and technology teams, and desired to launch Black River making use of best practices in operations, technology and risk management,” said Stuart Feffer, co-head of Capco’s Private Client and Asset Management (PCAM) practice. “Capco has without a doubt been impressed with Cargill’s business philosophy in wanting to not only establish a preeminent asset management business, but also to support that business with a strong operational foundation which is becoming so important to investors,” said Christopher Kundro, also co-head of the Capco PCAM practice.
Kundro and Feffer are co-authors of the March, 2003, Capco study, “Understanding and mitigating operational risk in hedge fund investments”, which has helped to make operational risk issues a top priority of hedge fund participants, investors and regulators.
About Capco
Capco is the only leading strategist focused exclusively on modernizing business models and architectures in the financial services industry. The Company provides advice and managed services to top tier clients from offices in North America, Europe, and Asia. For more information, or to learn about Capco’s services and solutions, please visit http://www.capco.com/.
For more information on the Capco study, “Understanding and mitigating operational risk in hedge fund investments”, please visit http://capco.com/alternative_investment.html.
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