Best Treasury Management System Technology Provider 2022
The technology stack for hedge funds is filled with myriad solutions to help and inform investment decisions. Still, few – if any – act as a tool to understand and address the many different ways prime brokers and hedge funds interact. Each firm has its own methods of practice that make it difficult to collaborate or discover trends and best practices, but Kayenta’s solutions will change all of that.
Kayenta is a multi-asset Treasury Management System (TMS) that provides investment managers with insight into financing costs and relationships. Though these are generally the largest overhead to a hedge fund strategy, they are often difficult to understand, let alone control. This is owing to the unique nature of how each prime broker calculates, values, and reports them. This is what Kayenta’s technology addresses and solves.
Kayenta operates a software as a service business model that is focused on remaining affordable to investment managers with anything from $100m+ to $1trn+ in assets. The basic offering starts at $40,000/year with modules that can be added as desired; Kayenta’s solution is one for funds of all sizes and complexities.
In addition, its TMS is poised to become a core part of the hedge fund technology stack. It transforms the treasury function from something that is too costly – or overlooked – to an affordable and semi automated process.
It differentiates from existing TMS solutions by having Kayenta’s experience and connections to guide it. It also utilises the technology available to deliver secure, reliable, and easily accessible data for all. Further underpinning that differentiation is Kayenta’s willingness to integrate into third parties who are best-in-class in their respective fields. Its offering incorporates market data and workflow solutions to provide the best possible solution for its clients from as many credible sources – and data streams – as possible.
It doesn’t just aggregate and normalise unreconciled prime broker reports, but by also asking clients to provide a ‘golden source’ of position data they have confidence in. Kayenta process those positions through an independent accrual engine, applying the fee schedules that have been agreed for each account, to deliver reliable information that enables actions to be made with confidence.
Kayenta also works closely with prime brokers to form optimised relationships that benefit both parties. Listening to the prime brokers and recognising their evolving needs helps it further understand how the industry is changing. To that extent, Kayenta’s TMS actively helps hedge funds manage their business in a way that is considerate of the needs of their counterparts.
Beyond this, Kayenta builds an in-depth knowledge of its clients’ financing arrangements thanks to the way it independently calculates accruals. For some, the presentation of the data is sufficient, but others may not have the team or experience to understand the nuances. As such, Kayenta has experienced individuals – in New York and London – to provide any required support and explanations of any aspect of the presented data.
Its clients are typically time-poor, so it ensures the onboarding process is of minimal impact to them. All clients need to do is provide a contact at their prime brokers and financing counterparts with an authorisation that their data can be shared with Kayenta. It then sources the necessary reports via SFTP, processes them through ETL pipelines, and securely holds the cleansed and normalised data in separate Cloud based resources. Once integrated, the investment manager is provided with a secure, containerised instance of the web application to view their data output.
From the specifics of its model – including its client-first perspective – to the intricacies in its system and its applications, Kayenta runs an impressive operation that has translated into considerable success for its clients and partners. Going much further than simply aggregating data and information to present tangible information that it can simply and effectively inform its clients with.
The team of Kayenta are experts who respect not just their work and the industry, but their clients – to formulate an experience well worth the title o