Backstop: Cloud-Based Solutions For the Alternative Investment Industry

Feb 16 2016 | 4:36pm ET

Editor's Note: The alternative investment industry has benefited greatly from the advent of software-as-a-service products that increase efficiency while simultaneously lowering costs, especially when compared to legacy solutions often anchored on simple spreadsheets and inflexible, obsolete software. The cloud-based tools offered by Chicago-based Backstop Solutions Group are at the forefront of this revolution, enabling hedge funds, funds of funds, endowments, institutional investors, private equity companies and consultants to work efficiently, invest intelligently and communicate more effectively.

Company name: Backstop Solutions

Locations: Americas, Europe, Middle East, and Asia


Fintech Sector(s): Investment management solutions and services

Elevator Pitch: Backstop Solutions is a leading provider of cloud-based financial technology solutions for the institutional investment industry.

Year Formed: 2003

No. of Employees:197

Stage: Profitable

Notable investors: n/a

Tell us a bit about your company and what it does?

Backstop is a leading provider of institutional investment technology. Created in 2003, Backstop was the industry’s first web-based software to help the investment management community operate more efficiently, invest intelligently, and communicate effectively. Today, more than 700 clients manage over 2 trillion dollars of assets on Backstop. 

How is Backstop different than other companies in the same space?

While most companies offer only a CRM tool, Backstop is a fully-integrated investor relationship management solution. Backstop’s software serves as a one-stop solution for investor relations, portfolio management, CRM, web-based reporting, and data tracking. 

Since 2003, Backstoppers have been pioneers in creating technology solutions that drive growth for clients. We were the first to develop and enhance cloud technology specifically for the buy-side community. Our unmatched expertise and vast resources provide clients with unparalleled support and service, and have been recognized by HFM European Technology, the HFM US Hedge Fund Services and Acquisition International Hedge Fund.

Who is your target market?

Backstop offers the largest client-centric services team in the industry. Our solutions are tailored for hedge funds, fund of funds, pensions, endowments, private equity firms, consultants, family offices and consultants in the institutional investment management space. Uniquely implemented for each client, the platform can be scaled to specific firm sizes and needs- -helping everyone from the startup hedge fund to the largest institutional investor drive transformative growth. 

How big is the opportunity?

Large. Backstop’s integrated platform provides market-leading solutions for all levels of institutional investors. The biggest competition Backstop faces is the do-nothing firm who opts for no solution. Over 60% of Backstop sales come from inbound leads. With 700 leading investment managers and allocators already using Backstop, and a network that spans the globe, we’re well-positioned for continued growth. 

Why are you and your team capable of succeeding?

Backstop partners with its clients to provide a user experience that goes beyond software. With highly customizable solutions, we’re able to address each client’s specific needs, creating a one-of-a-kind experience personalized to every user. Our internal teams focus on relationship management, client services, knowledge management, engineering and security – all in a unified effort to create the best user experience in the institutional investment community. 

What is your company’s next target/milestone?

Backstop has big growth plans for EMEA in 2016. We recently announced Craig Rowland as the company’s new Vice President of Institutional Sales. Rowland will be responsible for driving overall strategy and revenue growth in EMEA. Following the opening of our EMEA office in 2014, we are increasing our dedication to servicing this growing market.

Can you tell us one unusual fact about your company?

The idea of Backstop came to CEO Clint Coghill when he was running a hedge fund and wanted a technology solution that would make him more efficient. Specifically, Clint sought a solution that would organize his communications with investors and keep his research in one centralized place.

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