MaplesFS: From the Cayman Islands to Montreal
From Finance Montreal
Interview with Tyler Kim, Chief Information Officer, MaplesFS
In a few sentence, could you describe MaplesFS, its origins and the services it provides? As for yourself, could you share a bit on your background?
MaplesFS commenced operations in 1997 in the Cayman Islands with its origins tied to the provision of fiduciary and accounting services to special purpose vehicles used in structured finance transactions. In 2003, the investment funds division was established. In 2005, our offering was expanded to include middle- and back-office outsourcing services to hedge funds, private equity funds, family offices and institutional investors.
In 2009, a decision was made to establish technology as a source of competitive differentiation and driver of expansion for MaplesFS. We decided to open our Montreal office, and I joined MaplesFS as its first Chief Information Officer to build and manage its new IT team.
MaplesFS is now present in major financial centres such as New York, Singapore, Dubai and Luxembourg. When looking at global opportunities to expand, what are the criteria driving investment decisions for an investment operations outsourcing business like Maples Fund Services?
Proximity to our clients, strength of the local talent pool, and relative costs of doing business are three of the factors that we consider when opening new offices. Montreal ranks favorably with respect to all of these criteria. We also look at the presence of synergistic industries in the jurisdiction we are evaluating (investment funds, PE, structured and aircraft finance etc.) and our ability to utilise our expertise in these areas to grow our business in new markets.
What other cities were you looking at and what are the reasons that made you choose Montreal over those cities? In other words, what are Montreal’s key differentiators in financial services and software development?
When the decision was made to open a North American office outside of the Cayman Islands that could facilitate the expansion of Maples Fund Services, several options in both the US and Canada were considered. Montreal was particularly attractive because of the calibre of finance and accounting professionals graduating from the local universities. Moreover, as this office would serve as our global centre of expertise for IT, Montreal’s technology sector and concentration of high-calibre, experienced technology professionals also appealed to us. Also the multi-lingual workforce and the ability to recruit from the strong financial services community already present in Montreal, were key factors that influenced our decision as well.
Let’s talk about setting up a financial office in Montreal. Various aspects come to mind: compliance and regulatory issues, finding the right office space, recruiting skilled people, etc. How would you qualify that overall experience has been in Montréal?
Our Montreal office has expanded from 8 people in 2009 to 50 people in 2014. This team has proven their ability to compete on a global scale. In 2012 and 2013, we were named in Institutional Investor’s Tech 50, an annual ranking of those who lead the financial services industry in technological achievement and innovation. In 2013, we were also recognized as the Leading Hedge Fund Administrator – Technology by the Hedge Fund Journal.
How would you describe Montreal’s HR reserve pool? Did you have any difficulties recruiting skilled finance professionals in Montreal?
There are not a lot of other firms in Montreal that do exactly what we do. However, there are many firms here that have been a great training ground for the talent pool that we have drawn from, including State Street Global Advisors, National Bank Financial, BMO, CIBC and Standard Life Investments. Our presence here has also allowed us to attract Quebeckers seeking to return home from offshore jurisdictions such as Bermuda and Cayman.
What was the most positive surprise you’ve had since settling in Montreal? On the other hand are there any drawbacks?
I did not expect the culture of the city itself to have such a significant impact on our business. The atmosphere here contributes to very high morale. Also, the cultural diversity that is a natural part of Montreal’s fabric makes this one of the most interesting and fun offices that I have worked in.
What would you advise to a financial services company in search of a smart expansion opportunity?
Mainstream ideas seldom offer the greatest rewards. Truly ‘smart’ investments require foresight and the ability to realize the potential of jurisdictions you are expanding into.
About MaplesFS’ plans regarding future expansion, where are the opportunities likely to come from? How should financial centres facilitate this?
Our Montreal office will further expand as: 1) new client mandates are won; and/or 2) responsibilities for new organizational functions are assigned to our Montreal team. Both of these factors have contributed to the growth we have experienced to date. The IFC has been of help by using its public and private sector network to ensure that any potential concerns about growing our business here are adequately addressed.
For more on this story go to:
