Gemini Fund Services has hired 80 people over the last year as part of what officials call “a very large investment in infrastructure” to ensure the company’s operations can effectively address the proliferation of products on its platform.
The hiring spree in 2014 — accounting for more than a quarter of the Hauppauge, N.Y.-based service provider’s 300-person staff — came a year after the firm and its turnkey mutual fund series trust service, Northern Lights, was fined by the SEC over allegedly inaccurate disclosures about how fund boards made decisions about issues such as approving investment advisory contracts.
While some industry observers said the case highlighted the risks of having one series trust or board oversee scores of funds run by dozens of different investment advisers, Gemini officials say the hiring is more about being able to grow its business and offerings as its clients develop new products.
“Like most small companies that are growing dynamically, we had some growing pains. But right now we’re fully staffed and we’re growing for the future,” says Gemini CEO Andrew Rogers. Despite the regulatory scrutiny, Gemini says it helped 50 registered funds launch in 2014.
“We’re making that transition — we consider ourselves a great small company but we’re transitioning to be a great midsize company,” Rogers says. “In order to do that, we have to have the best people and the best systems to facilitate that growth.”
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