- Value of outsourced treasury transactions jumps 27% in 2024;
- Demand for outsourced collateral and trade operations also climbs sharply;
- “Generational shift” being witnessed in middle office outsourcing
(New York/London, February 19th 2025) – Demand for outsourced middle office solutions surged last year, breaking numerous records, new data from the Citco group of companies (“Citco”), the leading asset-servicer to the alternative investment sector, can reveal.
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Among the key findings, Citco’s 2024 Middle Office Solutions report showed significant growth in both the number of alternative fund managers outsourcing functions such as collateral and treasury management, and in the volumes they are outsourcing, as managers continue to look for ways to support their future growth by getting external support for non-core activities.
Citco data showed an acceleration in the value of outsourced treasury transactions it processed, which rose by 27% year-on-year to almost $2 trillion, with new monthly records for payment volumes seen continuously throughout 2024.
The amount of collateral transactions outsourced to Citco also climbed in 2024, rising by almost a third, while the value of margin movements processed surged some 75%.
Elsewhere, the data showed a significant uplift in the number of managers outsourcing trade operations to Citco, amid a push for efficient and effective trade operations globally. As part of this trend, overall volumes for outsourced trade operations, one of the busiest areas in 2023, continued to grow in 2024.
Speaking about the record-breaking figures, Ryan Fitzgerald, Head of Middle Office Solutions, Citco Fund Services (USA) Inc., said:
“2024 was another impressive year of growth for middle office, with more clients than ever before outsourcing this function.
“While middle office has historically been handled internally, the mindset among alternative asset managers, as well as corporates and banks, is changing.”
Fitzgerald said developments in middle office outsourcing were akin to the rise of the cloud in the last decade.
“A decade ago, businesses wanted everything on their own premises but fast-forward to today, and you would be hard pressed to find anyone who doesn’t have data in the cloud,” he said.
“We see the same thing happening for middle office – we are on the cusp of a generational shift, with managers starting to see the benefits of the major advancements in technology and servicing which they can utilize to help scale their own businesses faster.”
About the Citco group of companies (Citco)
The Citco group of companies (Citco) is a network of independent companies worldwide. These companies are leading providers of asset-servicing solutions to the global alternative investment industry. With $2 trillion in assets under administration and operations spanning across 36 countries, Citco’s unique culture of innovation and client-driven solutions have provided Citco’s clients with a trusted partner for more than four decades.
