Even before Dodd-Frank required hedge fund registration and enhanced oversight, we'd been saying that investors were increasingly demanding more transparency, more customer-friendly policies and in some cases third-party administrators that could better handle back office and compliance functions. Most hedge funds now get that the 'ride 'em cowboy' approach will no longer cut it. Sensing opportunity, we're seeing more hedge fund vendors cater to this new market imperative.

Prime brokers are also enhancing their offerings. A great example is Citi Prime Finance, which just launched a consulting and advisory business. The whole idea is to help funds win more investors in the new regulatory climate. The idea is to latch on to young funds and then partner "with them through all phases of their growth and maturity, from start-ups to institutional size funds," according to Citi.

One goal for clients is to "reduce the cost related to having a more established structure, and over the past six months has hired management consultants and experts that helped sell-side research firms strengthen their businesses in the past few years," notes Reuters.

For more:
- here's the article
- here's the release

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