Any suggestions for resources (books, texts, web resources) that explain in detail back office operations - custody, fund admin, sec lending, cash sweeps, etc? I am working on a long-term project valuing these services for a firm, and although I have the basics down, I am looking to acquire some deeper knowledge. Preliminary web searches don’t yield any promising results… but maybe I am looking in the wrong places. Thanks in advance for your help.
Try something by Charles Bukowski
Actually, I read this book on security lending & repos to prepare for a repo desk interview about 5 years ago. It was was actually pretty good. http://www.amazon.com/Securities-Finance-Lending-Repurchase-Agreements/dp/0471678910 Other than that, I don’t know that you need a book to learn enough about the other topics… I’m sure there are specialized books for each of the other topics you mentioned (ie MF administration, cash management, custodial, etc, etc.)
Generally back office firms charge a 5 to 10% markup on a cost plus basis. Account for tax, discount this and bobs your uncle you have a value, simple stuff.