Buy-Side Technology - Concept Capital signs with Paladyne
April 1st 2007

New Contract

Concept Capital signs with Paladyne

Concept Capital, the prime brokerage services unit of Sanders Morris Harris which provides technology outsourcing, back-office support and administrative services to small- and mid-tier hedge funds, is implementing Paladyne Systems' product suite to facilitate greater internal integration with its portfolio accounting system. Concept also plans to offer a co-branded version of Paladyne's order management system to its hedge fund clients.

The firm has begun installing Paladyne front- and middle-office applications on-site for streamlined integration with Advent's Geneva accounting system, and will in turn offer Paladyne's order management, portfolio management, data warehousing, reporting and performance analysis tools via ASP to its hedge fund clients.

According to Michael Rosen, managing director at Concept Capital, and Paladyne chief executive Sameer Shalaby, the implementation should improve data and reporting accuracy, as well as increase the scalability of Concept's hedge fund services.

"There are two parts to the Paladyne deal," explains Rosen. "First, we have licenced their entire suite to implement for internal use at Concept Capital. This will integrate with Advent Geneva, which we implemented earlier this year, and it will make all of our employees more productive by using Paladyne tools to drive Geneva rather than using Geneva directly.

"Second, we will be able to resell their order management system and co-brand it with Paladyne to offer it to our hedge fund customers as a competing order management system," Rosen continues. "We believe this will create significant efficiencies for our hedge fund customers and ourselves because of the totally integrated environment that would ensue."

Rosen adds that once Concept Capital goes live with Paladyne internally, the firm will also be able to offer the system to clients, which should occur in about a month's time. "We are going to spend some time working some kinks out before offering it on a broad level, and also want our back-office people to become accustomed to using the product before rolling it out on a large scale." ><

Stewart Eisenhart

Bottom line: Recognising the need of smaller-tier funds and their service providers for tighter technology integration, Paladyne and Advent's alliance continues to bear fruit.