HazelTree and Goldman Sachs Asset Management Announce Strategic Partnership to Help Investment Managers Manage Cash Holdings

Rules-based “sweep” developed in response to banks’ compliance with Basel III guidelines

NEW YORK--()--HazelTree and Goldman Sachs Asset Management (GSAM) announced today a strategic partnership to assist hedge funds, fund administrators, managed account providers and family offices in improving their cash management. The partnership is in response to the changing regulatory environment for systemically important financial institutions (SIFIs), particularly Basel III guidelines on capital requirements and balance sheet composition.

“Because of these new requirements, banks’ desire to accept or retain short-term cash deposits on their balance sheets has become challenging for SIFIs, and many institutional investors may not be able to keep cash balances on deposit in the same way they have in the past. As more banks become 100-percent in compliance with Basel III, the pressure on hedge funds in particular to find alternatives for their cash — or face deposit limits or higher fees — will only increase,” said Stephen Casner, CEO of HazelTree. “This partnership with GSAM aims to provide a risk-managed, operationally efficient way for hedge funds to streamline their cash management through an unprecedented combination of visibility into excess cash balances across clients’ various counterparties and automated movement of that cash for easier execution.”

Instead of manual cash transfers with each counterparty, typically the most common practice today, the partnership between HazelTree, a leading Treasury Management solution provider, and GSAM will provide hedge funds, fund administrators, managed account providers and family offices with automated, rules-based “sweep” access to solutions managed by GSAM. Clients will have a comprehensive view of all cash balances across their counterparties and can set target rules to optimize those cash balances and investments through the enhanced functionality.

“As HazelTree sought ways to enhance their platform with new, industry-leading technology, we were pleased to partner with them” said James McNamara, Managing Director and Global Head of Third Party Distribution. “GSAM has a long history of managing cash for hedge funds and other institutional investors, and we believe this new relationship with HazelTree will make cash management that much easier, as certain institutions are increasingly asked to find alternative investment options for their cash balances.”

About Goldman Sachs Asset Management

The GSAM Global Liquidity Management (GLM) team provides money market and short duration fixed income solutions with more than $277.0 billion assets under management as of September 30, 2015. With more than 30 years of liquidity management experience, GLM remains a core capability within GSAM and serves many of the world’s most discerning liquidity managers.

Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which oversees $1.19 trillion as of September 30, 2015.1 Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. For more information please visit www.GSAMFunds.com.

About HazelTree

HazelTree is a leading Treasury Management solution provider, serving hedge funds, fund administrators, managed account providers and family offices with powerful, proactive performance enhancement and risk mitigation capabilities that seeks to generate operational alpha, reduce a range of risks and streamline operations. Its complete treasury management solution includes comprehensive cash management, securities financing, over the counter (OTC) collateral management, counterparty management and prime-broker margin management capabilities. While each of these modules enables improved performance and control of specific functions, HazelTree is most powerful when working as an integrated treasury management suite. All modules are delivered through a single user interface and supported by a common data management infrastructure that integrates and normalizes feeds from multiple sources, performs quality checks and provides an audit trail. For more information please visit www.hazeltree.com.

1Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion.

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Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice.


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Date of First Use: December 15, 2015 Compliance Code: 24629-OTU-129116


For Goldman Sachs Asset Management
Andrew Williams, 212-902-5400


For Goldman Sachs Asset Management
Andrew Williams, 212-902-5400