Services

ParkLexington is laser focused on helping our clients set-up and/or optimize their funds and firms. Our services are tailored to clients’ unique needs and strategic goals, driving results that directly enhance the bottom-line. Value in, cost out.

Fund Expense Management

ParkLexington works with the most recognized Investment Managers and Asset Owners to provide transparency into transaction and fund expenses. We not only understand their expenses, but also institute strategies to reduce costs. This comprehensive cost management approach reduces transaction and fund expenses, improves performance and optimizes the company bottom-line.


Commingled Funds

40 Act Mutual Funds Collective Trusts UCITS Limited Partnerships Delaware Business Trusts Group Trusts Hedge Funds Insurance Accounts Other Commingled Funds

ParkLexington optimizes fund performance by reducing or eliminating operating expenses, hidden fees, and high interest commonly charged by financial intermediaries and service providers supporting the firm and fund operations. Excess expenses, fees, commissions and interest rates can cost your funds and firm millions. These expenses may be hidden in trading transactions or deducted directly from the fund assets. ParkLexington understands these expenses and works closely with fund managers and fiduciaries to reduce their expenses resulting in millions of dollars in annual savings and increased returns for the fund and firm. If you are exceeding expense caps, ParkLexington can help you decrease expenses directly, reducing fee waivers and fund reimbursements which have materially improve firm profitability. If you are under the caps, we help reduce the fund’s expense burden and improve fund performance. Either way, ParkLexington enhances financials while helping you meet your fiduciary responsibly. We structure our engagements to guarantee a return meaning you only pay for our services when savings and/or gains are realized.

ParkLexington Fund Optimization
Custody Accounting Fund Admin Transfer Agency Securities Lending Hedging Services
FX, Currency Services Cash Balances Financing and Prime Services Legal, Audit, Print & Other Services Middle Office Services Other Fund & Capital Markets Services

Fund Optimization Case Studies

$176 Billion fund complex

Rationalize fund accounting, admin and custody

Reduce fund expenses and reimbursements

Results

  • $32 million reduction in fund expenses
  • $8 million reduction in IM reimbursements
  • Consolidated banks, Improved service levels
  • Fiduciary evidence of Board and management duties
  • Lower fund expense ratios, making funds more marketable

$670 Billion fund complex / $30 Billion UCITS complex

Benchmark and reduce UCITS fund expenses and reimbursements

Analyze fees structure alignment with fund types

Results

  • $4 million reduction in fund expenses, currency hedging
  • $1.5 million reduction in fee waivers / reimbursements
  • Improved service
  • Optimized fee structure by type of fund
  • Fiduciary evidence of Board and management duties
  • Lower fund expense ratios, making funds more marketable

$88 Billion fund complex

Benchmark & reduce fund expenses and reimbursements

Build case for fund administration fee recalibration

Results

  • $3 Million in identified reductions
  • $1 Million in reimbursement reductions
  • Fiduciary evidence of Board and management duties
  • Lower fund expense ratios, making funds more marketable

$24 Billion fund complex

Reduce firm and fund expenses

Optimize firm operations

Results

  • $2.4 Million in fund & firm expense reductions
  • $5 million gain in securities lending
  • Lower fund expense ratios, making funds more marketable
  • More efficient operations and improved service levels

$110 Billion Fund Complex

Old fee schedule that they thought was competitive

Unaware of hidden fees and potential gains

Results

  • $12 million reduction in fees
  • $8 million pick up in sec lending, cash and FX

$70 Billion Fund manager

Margins were suffering as a result of Fund Reimbursements and Waivers

Assured that fees were best in industry (they were not)

Results

  • $3 million in expense Reductions- $2 million in waivers / reimbursements
  • Identified and implemented transaction volume reduction measures
  • Moved fees from inline to close to best relative to industry market place

$30 Billion portfolio team spinning out of a large bank

Needed a fully operational firm, portfolio mgmt, trading, IM operations

Required an institutional grade firm to comfort transitioning clients

Results

  • An efficient, on-time setup of highly scalable, best in class firm
  • Met all requirements and culture while minimizing the financial impact.
  • Transitioned 100% of the clients, data and $30 Billion in assets

$3.5 Trillion dollar fund complex

Many custodians, accounting agents and administrators

Strategically and efficiently rationalize and align fund service providers

Results

  • Advised and assisted in analysis of existing structure
  • Rationalized fund service providers and developed consolidation strategy
  • Millions in savings while improving fund operations efficiency

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Pensions and Endowments

ParkLexington boosts pension plan, endowment, and trust performance by reducing or eliminating operating expenses, undisclosed fees, and high interest commonly charged by financial intermediaries to support a plan’s operations. Excess expenses, fees, commissions, and interest rates can cost a plan millions. Theses expenses are hidden in trading transactions or deducted directly from the plan assets. ParkLexington understands these expenses and works closely with plan fiduciaries to reduce plan expenses resulting in millions of dollars in annual savings and increased returns for the plan. As Plan Fiduciaries are increasingly scrutinized, ParkLexington can help you meet your fiduciary responsibilities to the pension plan participants while boosting the fund’s returns and services – ensuring you are paying the most favorable rates and fees for the best fit services.

ParkLexington’s non-evasive approach can maintain relationships with your providers while instituting savings measures and programs that will generate a significant pick-up for the fund. An obtainable pick-up of 15 basis points will generate $1.5 million annually for every $1 billion in fund assets equating to $25 million in 10 years and $185 million in 30 years. We are not compensated until you realize the gains ensuring your fund realizes a true return and you demonstrate your fiduciary obligations.

ParkLexington Pension & Endowment Optimization
Custody OCIO Investment Management Cash Balances Securities Lending Recordkeeping / Payment Services
FX, Currency Services Brokerage Commissions Tax Reclaims Actuary Class Actions Legal, Audit, Print & Other Services

Pension and Endowment Case Studies

$4B Manufacturer, Aerospace

Situation: A $2 Billion underfunded Pension Plan was seeking ways to reduce its funding gap and cash contributions while ensuring that its fees to service providers were calibrated to market rates.

Solution: Analyzed plan expenses and provider contracts, developed and implemented cost reduction strategies for global custody, Investment Management, professional services, and other expense areas.

Results: $3.5 million reduction in annual expenses / gains; aligned fees to market rates; Provided confidence that the plan service fees are aligned with the market.

$7.5B Utility, Electric & Gas

Situation: A $3.5 Billion underfunded Pension Plan was seeking ways to reduce its funding gap and cash contributions while ensuring that its fees to service providers were calibrated to market rates.

Solution: Analyzed plan expenses and provider contracts, developed and implemented cost reduction strategies for global OCIO, professional services, and other expense areas.

Results: Strategies ranged in opportunity from $1.4 million in annual expense reductions / gains;

$2.8B Manufacturer, Building Materials

Situation: A $1.5 Billion underfunded Pension Plan operating in an OCIO environment was seeking ways to reduce its funding gap and cash contributions, yet unsure of how to benchmark and negotiate fees with its OCIO provider. Previous internal efforts to drive down fees were unsuccessful.

Solution: Analyzed plan expenses and provider contracts, developed and implemented cost reduction strategies for global OCIO, professional services, and other expense areas.

Results: $1.2 million in annual OCIO savings.

$10B Distributor, Industrial Gas & Chemicals

Situation: A $2.8 Billion underfunded Pension Plan was seeking ways to reduce its funding gap and cash contributions while ensuring that its fees to service providers were calibrated to market rates.

Solution: Analyzed plan expenses and provider contracts, developed and implemented cost reduction strategies in the area of Investment Management.

Results: Strategies ranged in opportunity from $1 million to $3 million in annual expense reductions / gains. Results: $1.2 million in annual OCIO savings.


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Investment Manager Operational Consulting

Whether you are launching a new firm or are already an established manager, ParkLexington will maximize your investment in operations by sourcing and optimizing service engagements and designing and implementing efficient operational processes resulting in a fully scalable institutional quality infrastructure.

Investment Manager Setup & Transition

ParkLexington understands investment management operations, organizational structures and the industry service provider landscape. We have developed a methodology of assessing future requirements and combining that with industry best practices to recommend and implement a future state structure that combines leading service providers with high quality operational processes. This proven strategy has allowed ParkLexington to setup best in class investment management organizations primed to support growth.

Investment Management Structure: Building a Cohesive Team and Collaborative Partnership Culture
ParkLexington Investment Manager Set-up
Portfolio Managment Trading Sales/Marketing Legal/Compliance Investment Management Operations IT HR Accounting/Finance Audit/Tax
Organization & Service Provider Robustness, Scalability, Economics
Organization Readiness

Operational Consulting Case Study

Client: $30 billion portfolio management team spinning out of a large bank

Requirements: Client required a fully operational firm, inclusive of portfolio management, trading, and investment manager operations. The new firm also need to be institutional grade to comfort transitioning clients.

Results: ParkLexington performed an efficient, on-time setup and implementation of highly scalable, best in class providers that met all business requirements and culture of the new firm while minimizing the financial impact. ParkLexington successfully transitioned all clients, data, and $30 billion in assets under management.


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Assessments and Due Diligence

ParkLexington has developed a methodology of assessing an organization’s current situation and uncovering risks or vulnerabilities that could impact future operations.  We also gather future state requirements and perform a gap analysis versus the current state and industry best practice to develop recommendations for a future state with lower risk, lower cost and that can support growth.  ParkLexington can be an invaluable advisor to varying clients on this front, whether they are a Private Equity firm looking to make a significant investment or an existing firm looking to diagnose the effectiveness of their operations.  

Cultural Fit Project Program Management Analytics IM Operations Experience
Subject Matter Expertise ParkLexington Collaborative Approach
Tools & Templates Research Methodologies Proven Results

Assessment and Due Diligence Case Study

Client: $20 Billion Asset Manager

Requirements: Perform an expenses assessment and identify areas for savings.  Also performance an operational assessment and identify process, control, system or organizational changes to improve the operations infrastructure.

Results: ParkLexington completed an in-depth review of $11.5 million across 22 categories of spend and identified savings potential of up to $3 million.  In the operational assessment, ParkLexington reviewed 27 functional areas spanning front, middle and back office and provide over 75 recommendations covering a broad range of impact.


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Operational Improvement & Change Management

ParkLexington uses its industry knowledge to manage small to large scale operations & technology changes facing investment management firms.  We have assisted on a wide range of implementations ranging from minimally evasive process changes to full Middle Office & OMS outsourcing.  ParkLexington has a proven method and uses the utmost diligence and care when assisting with and monitoring these implementations to ensure the best possible outcome for our clients.  Additionally, ParkLexington is able to leverage its insights and connections to ensure our clients receive best in class services at an optimal price point.

Case Study

Client: $2.5 Billion Asset Manager

Requirements: Design & implement a future state infrastructure able to support a 2-3x growth in AUM/Clients. ParkLexington reviewed the current state lifecycle of a trade and lifecycle of an account and determined the existing technology and resourcing count could not support the existing business or growth and determined the best solution was a full OMS & Middle Office outsourcing.

Results: ParkLexington ran the project from end to end including sourcing the vendor, contract & fee negotiations, process design & implementation, system testing & implementation, and implementation of new internal controls. ParkLexington managed the successful transition of $2.5 Billion in AUM across 200+ accounts onto the new outsourced platform & developed several process improvements for the future state.


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