Fund Manager Strategies for Mitigating Banking Risks

Between FDIC takeovers and falling stock prices, shakeups in the banking industry have caused uncertainty across the financial services sector. Like any area of risk, fund managers should take proactive steps to mitigate the potential impact on their businesses, portfolios and investors.

Grassi’s Fund Administration advisors can help you identify the greatest areas of risk and develop plans to protect your business and assets from loss. Strategies include:

  • Develop emergency response plan with scenario planning to address potential impact of bank closings on investments, vendors and business partners
  • Identify alternative sources of capital to diversify your banking relationships
  • Conduct due diligence on banks, custodians and related parties
  • Communicate strategically and proactively with investors to minimize risk of premature withdrawals and litigation
  • Connect with new banking advisors for a fresh perspective and reduced concentration risk
  • Tax planning to minimize obligations due to the restructuring or recovery of distressed investments

Having more than one banking relationship is considered a best practice even in the best of times. In times of stress, it is essential to have alternatives for all critical services. Our Financial Services team has deep connections within the banking community and can help you identify the ones that can add value to your fund. Contact your Grassi advisor or John Zoraian, Fund Administration Principal, to get started.

The ongoing disruption in the banking market has a unique impact on entities in the Financial Services sector. Get customized solutions from Grassi’s industry advisors who have decades of fund administration and management experience in both the front and back office.

John Zoraian John Zoraian is a Principal in Grassi’s Financial Services practice, where he provides expert fund administration, compliance and advisory services to hedge and private equity funds, funds of funds, master-feeders, investment advisors, broker-dealers, family offices, fintech entities and more. John draws from more than 35 years of experience in the hedge fund business. Prior to joining Grassi, he established S&Z Fund Services, a division... Read full bio