4. Connectivity-as-a-Service:
To counterparties and trading venues without
independent infrastructure costs
01
Data-as-a-Service:
Historical repository of and real-time access to
all portfolio and market data; end-of-day
services to ensure accuracy
02
Software-as-a-Service:
Multi-strategy trading, risk management and
reporting capabilities– accessible everywhere
03
04
Redefining the concepts of ‘mission-critical’ and
‘vendor’
4
THE NEXT WAVE OF PREFERRED PROVIDERS
Infrastructure-as-a-Service:
Business continuity and disaster recovery;
seamless upgrades and maintenance without
interruption
5. LIQUID– A MODERN HF OPERATING SYSTEM
1. Industry’s First OERMS
2. With Managed Services
3. Through our Proprietary Cloud
4. Leveraging Next Gen, Open Technology
5
PLATFORMTHE LIQUID
A high value alternative to legacy solutions, delivering:
7. Performance and risk analysis, client reporting and shadow
NAV
LIQUIDMETRICS®
I. SOFTWARE-AS-A-SERVICE
CONVERGENCE OF REAL-TIME FRONT-OFFICE CONTROLS
APPLICATION DESCRIPTION
7
Broker-neutral order and execution management systemLIQUIDTRADE℠
Web-optimized dashboards and reports on any mobile deviceLIQUIDMOBILE℠
8. OUR SOLUTIONS: BROKER-NEUTRAL OEMS
LIQUIDTRADE℠
Integrates the speed, workflow and trading tools of
broker-neutral EMS with OMS capabilities:
• Select and trade single and basket orders
• Choose best broker(s) for your strategy
• Route trades to the execution venue of your
choice
• Analyze performance and compliance in real-
time
• Allocate trades to accounts in compliant
manner
• Access full transactions history for deeper
analysis 8
9. OUR SOLUTIONS: REAL-TIME RISK & REPORTING
LIQUIDMETRICS®
Real-time dashboards and reports for continuous
portfolio monitoring, and investor reporting:
• Extensive library of risk, performance, and P&L
statistics and reports
• Isolate drivers of performance
• Identify and mitigate potentially adverse events
• Automate client reporting
• Crosscheck fund admin with shadow NAV
9
10. 10
OUR SOLUTIONS: ANYTIME MONITORING
LIQUIDMOBILE℠
Mobile-optimized investment management
platform:
• View real-time portfolio and risk analytics
for immediate insight on the market’s impact on
your investments
• Stress test potential scenarios to answer
investor questions, e.g. “How does the price-
drop in oil affect my investments?”
• Create custom dashboards and reports to
address the most specific investor
mandates
11. 11
Outsourced services that enable firms to rapidly scale the business
Reduce Capital
ExpenseRe-allocate capital from ops to the
front-office with outsourced start-
and end-of-day processes
Ensures data integrity and accuracy
for analysis and reporting purposes
Eliminate Manual
ProcessesOn-board new locations, users, and
portfolio products to take advantage
of new opportunities
Faster Time to Market
Business Benefits
1. End-of-Day Reporting
2. Data Consumption
3. Trade & Position
Reconciliation
4. Shadow NAV
II. DATA-AS-A-SERVICE
12. 12
III. CONNECTIVITY-AS-A-SERVICE
Simplified connectivity to growing number of liquidity venues and market
data feeds in a broker-neutral environment
Access Range of Brokers
Expedites connectivity to brokers to
take advantage of market
opportunities
Reduces dependence on a single
partner through ability to execute
and clear trades with custodian of
choice
Custody Neutral
Eliminates latency and multiple points
of failure that can erode TCA
Direct-Fiber Connect to
Markets
Business Benefits
EXECUTING
BROKERS:
BAML, Barclays, CITI, CS, Deutsche, Fidelity, Goldman, Instinet, Morgan Stanley, UBS, and
CLEARING
BAML, Bank of New York, ConvergEx, Credit Suisse, GPP, JPM, MS, Nomura, SS&C, UBS,
others…
MARKET DATA
FEEDS:
ACTIV, Thomson Reuters
13. 13
IV. INFRASTRUCTURE-AS-A-SERVICE
Outsourced data center, equipment and maintenance to safeguard mission-critical
workflows and data; ensures the highest levels of security and operational
reliability
1. Trading Operations Equipment
2. Central Data Repository
3. Redundant Data Centers
4. Automated Upgrades
Security
Controls access to equipment
and data to combat access to
services and data
Ensures optimal speed and
performance for low-latency
investing and analysis
Consistent
PerformanceProven 99.9999% uptime with
full back-up systems and
redundancy
Improved Business
Continuity
Business Benefits
Maintains portfolio data since
inception for analysis and
reporting purposes
Unlimited Data
Repository
14. 14
A COMPARATIVE VIEW
MODERN VS. LEGACY APPROACHES TO SERVICING HEDGE FUNDS & THEIR INVESTORS
OMSEMS Pre-Trade Risk
& Compliance
Portfolio &
Risk Analytics
Shadow NAVReal-Time
Reporting
Liquid
Platform
Data M’gmt
Services
Legacy
Suite
Point
Solutions
Multi-Tenant
Cloud
Multi-Asset
Coverage
“This is (now) a cloud first and mobile first world.The industry does not respect tradition,
it only respects innovation.” – Microsoft CEO
15. REAL SOLUTIONS
15
REAL CLIENTS
$2.5B Boston-Based RIA
• Running 3 funds; preparing to launch a 4th
• Were evaluating OMS’ when we uncovered drivers:
• Real-time performance and risk statistics
• Ability to run compliance rules and client reports
$600M Activist Hedge Fund
Launched in 2013; tripledAUM in 18 months
Requirements: integratedOMS/EMS/PMS with reporting
Referred to us by their largest investor
$100M New Launch– HealthCare Focus$800M Options-Based Asset Manager
• .
• .
• ..
•
.
•
• ..
Management team came from Soros & SAC Capital
Priming at Goldman and Morgan Stanley
Required EMS/PMS with real-time risk and reporting
to actively manage investments
• Established fund built and managed in-house
investment systems
• Infrastructure did not keep pace with markets
• Scalability,TCO and the ability to launch new products
were an issue
17. ROI OF INVESTING IN INFRASTRUCTURE
INSTITUTIONALIZED
MANAGER• $800M Options-Based Manager
• Dynamic Funds + Managed Accounts
• Very Established; 26YearTrack Record
CRITICAL BUSINESS ISSUES
Disparate, Non Real-Time Systems
Multiple Points of Failure
Inability to Expand into New Markets
HighTCO
Single End-to-End Platform
Market-Tested Options Capabilities
Proprietary Cloud; Managed Services
Eliminate Systems and Ops Headcount• 89% Annual Savings vs Legacy Approach
• .
• l
• .
• ..
• .
•
• L
• ..
VALUE OF MODERNROI
17
$129K
Alternative¹
Modern
1 Average 3rd party expenses by % of AUM; Citi Prime Finance Expense Survey
TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
18. ROI OF INVESTING IN INFRASTRUCTURE
• Allocated $140K per annum back to the front-
office
ROI
18
TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
$60K
Alternative
Modern
$200K
19. ROI OF INVESTING IN INFRASTRUCTURE
EMERGING MANAGER
• $250M L/S Equity Fund
• 3 Funds + ManagedAccounts
• Strong Pedigree; 5YearTrack Record
CRITICAL ISSUES
Analytics and investor reporting; Mobile access
Non real-time systems that do not synch
Tech costs outpaced growth & fees
Single end-to-end platform
Integrated real-time risk analytics
Limited IT; No operations footprint
Institutionalized to raise more assets• Allocate $140K per annum back to the front-office
• ..
• .
• .
• .
•
• L
• ..
1 Technology and Operations Expenses as Reported by Liquid Holdings Client
VALUE OF MODERNROI
19TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
$60K
Alternative¹
Modern
$200K
20. ROI OF INVESTING IN INFRASTRUCTURE
START-UP
• $40M Event Driven Fund
• 3 Employees: CIO, HeadTrader, CFO
• CIO & HeadTrader: 10-year track record
CRITICAL ISSUESAT LAUNCH
Real-time workflows to synch front-office
Present-day & future transparency
Appear institutional to pension funds
Front-office system scales as business grows
Support different fund structures
Automate middle-office with repeatable controls
Tech and ops expenses align with cash flow• Allocate $90K per annum back to the front-office
• ..
• .
• .
• .
•
• L
• ..
1 Technology and Operations Expenses as Reported by Liquid Holdings Client
VALUE OF MODERNROI
20
$40K
Alternative¹
Modern
$130K
TRADING COSTS RISK COSTSTECH COSTSOPERATIONS COSTS
Interesting value: value of what we are saying. Because we do all of this.
Opportunity to save $$$ / reallocated toward additional front-office.
Inside circle – 30%-- within 12 months, increased assets by 30%....
Interesting value: value of what we are saying. Because we do all of this.
Opportunity to save $$$ / reallocated toward additional front-office.
Inside circle – 30%-- within 12 months, increased assets by 30%....
Interesting value: value of what we are saying. Because we do all of this.
Opportunity to save $$$ / reallocated toward additional front-office.
In circle – 120% growth to $90 million dollar manager
