Services – Investment Fund Accounting and Administration
Hedge Funds
The fund administration services includes a comprehensive solution to the Fund Manager in regards to accounting, reporting, investor services, RTA, audit assistance and other statutory filings with the regulators. We assist our clients in maintaining their hedge funds with highly complex investment strategies to earn active returns. Though the demands of hedge funds administration may differ geographically and by time zone, we make sure to support you with day-to-day tailored management of your investments. We are uniquely positioned to reduce our clients’ cost base and increase their operational efficiencies. We deliver accurate and timely reports to all stakeholders, which are independently calculated in an automated and controlled working environment.
Fund Accounting
- Daily, Weekly, Monthly, Quarterly or Inter-Period NAVs
- Review of offering documents and recommended operational procedures
- Preparation of all accounting records, including financial statements, balance sheets and income statements.
- Verification and recording of income and expense accounts
- Preparation and on-going maintenance of investor capital-account journals.
- Cash, Positon and Trade Reconciliation
- Corporate Action processing
- Independent Portfolio Pricing
- Handle different management and incentive allocation arrangements within your capital structure.
- Income/ Expense Allocations to Investors and reporting
- Carve out and side pocket special allocations.
- Upkeep of General Ledger
- Multi-dimensional GL (i.e. by fund, location, manager, etc.)
- Full transaction ledger of trading and non-trading activity.
- Budget-to-actual reporting
- Accounting for multi-series, multi-class, and master-feeder structures
- Performance, exposure and custom reporting
- Complete Audit Support
- Investor Statement preparation and distribution
Financial Statements Preparation
- Financial Statements preparation per GAAP and IFRS
- Preparation of footnotes and computation of Financial Highlights
- Act as liaison and provide reporting to auditors
- Address audit queries, and make edits for audited financial statements as needed/requested
Investor Services
- Process investor's subscription, redemption and transfer transactions
- Maintaining shareholder registers and partners’ capital accounts
- Share series administration
- Maintaining share and partnership register
- Run applicable AML controls, checks - according to fund domicile
- Maintain investor documentation and make available for audit
- Address investor queries and information requests
- Support data and information requests of local regulators, directors and/or corporate secretaries
- Assisting with capital call activity
- Recording and maintaining investors’ database
Compliance and Reporting
- Investor AML/KYC
- NFA Reporting
- CPO/PQR
- Form PF
Private Equity and Real Estate Funds
As regulatory pressure increases and investment strategies become more complex, Private Equity funds are outsourcing their administration operations in order to put their focus on generating returns. We understand what is important to the Private Equity sector. Our experienced Private Equity team provides specialist accounting, investor relations, customized reporting and day-to-day management of our clients’ funds. We continuously review the workflows and invest accordingly to ensure the professional service provided to the funds and the investment is of the highest standard.
Private Equity and Real Estate Funds
- Periodic NAV reporting
- Periodical review of transactions and cash reconciliation. Liaise with banks, custodian or investment manager to ensure the funds operations are properly recorded.
- Generate and process Commitments, Capital Calls, Distribution Notices, Transfers and Redemptions
- Capital Call & Distribution Calculations
- Carried Interest and Waterfall Calculation
- Customized Investor Reporting
- Flexible Performance Reporting, including IRR, MOIC, Annualized yield, and ITD Annualized ROR calculations
- Trial Balance, Balance Sheet, Account Statement, Equity Schedule
- Combined Capital Call and Distribution Summary
- Distributions for Income, Non-Recallable or Recallable Return of Capital, and Recycling Provisions
- Calls for Investments, Expenses that Impact or do not Impact Commitment and Interest
Fund of Fund (FOF)
- Preparation of cash disbursements and receipts for FOF’s
- Recording of unrealized G / L on Investments
- Maintaining complete Ledger for FOF investment
- Locking period and documents management of underlying Investment funds
- Verification of Fee charged by FOF’s
- Tracking of FoF’s by Strategy or Sub-Strategy
- Process Subscriptions and Redemptions
Managed Accounts
- Daily and Monthly reporting
- Three-Way Trade & Position Reconciliation
- Calculation of Account performance (daily, monthly, year to date, and since inception)
- Performance and exposure reporting
- Management & Performance Fee Calculation
- Complete Audit Support
- Daily Trade breaks reporting and Net P & L
- P & L and Exposure Reporting by Fund, CTA and Strategy
- VaR, margin analysis, Benchmark comparison and correlation analysis
- Commission Reconciliations, Intraday
- Attribution reporting by Sector, Asset class, Country, Currency, and Trader
- Invoicing Account Owners for Management and Performance Fees
Cryptocurrency Funds
- Daily, Weekly, Monthly, Quarterly or Inter-Period NAVs
- Comprehensive Trade and Position Reconciliation
- Proficient with calculations of numerous bespoke derivative products across multiple exchanges
- Knowledgeable on ICOs, public/private blockchains, hot/cold wallets, ERC-20 tokens, and forks
- Experienced with different trading strategies such as staking, mining, and high frequency trading
- Management and performance fee calculations
- Cash reconciliation
- Partnership, multi-series, and equalization accounting
- Complete audit support
- Experienced with ICOs, Public & Private Blockchains, Hot Wallets &Cold Wallets, ERC – 20 tokens, and Forks
- Proprietary Portfolio reconciliation Technology for Cryptocurrencies
Services -Shadow Accounting
Shadow accounting services allows you to make no mistake while you submit your final reports. It also ensures double check of the reported numbers with a second pair of eyes. With our advanced tools, solutions and globally accepted resources, we assure minimum errors in the final accounts. Keeping shadow accounting independent of fund administrators is an excellent internal control and one of the best practice in reviewing accounts. Our experience in this field is unparalleled and furthermore enhances the ROI exponentially by additional features of reporting & business analytics. Customized Outsourced Shadow-accounting will lead you to give an extra pair of eyes to look after the fund reports. Service level and all the other agreed deliverables ensures consistency under shadow accounting and official Administrator role.
Services -Middle Office Support
We provide extensive in-house experience to Fund Managers with a best-in-class solution for outsourcing their middle office and trading operations. Managers that utilize us, experience a team of experts that professionally manage the day-to-day operations. Our team is industry experts in utilizing the litany of trading, settlement, allocation and accounting systems that have proliferated the industry over the past several years. We support the full life cycle of systems implementation – from helping clients select the appropriate system, integration and customization, through leveraging the technology to successfully support middle office management. Institutional investors find comfort in knowing that it is a part of our back-office operations.
- Bank and credit card accounts reconciliation
- A/R and A/P monthly aging reports
- Complete Support for investor due diligence and onsite visits
- Data transfer to third party custodians and risk reporting systems
- Interface with limited partners, fund auditors, and other service providers
- Trade allocations
- Prepare and upload trade files
- Three-way reconciliations
- Daily Reconciliation of trade breaks, cash, positions and P&L
Process – Investment Fund Accounting
- Starts with signing NDA, engagement letter and service level agreement which covers the agreed delivery date of monthly accounting package, inclusions of the standard accounting package, any customized reports etc.
- We download the broker statements, bank statements etc. independently by read only web login or alternatively clients’ share their statements over email, hubdoc, google drive etc.
- We process these statements independently in our system and calculate the realized gain\loss, closing cost of the portfolio as per the preferred method of lot realization like FIFO, LIFO, weighted average, HIFO etc.
- Process the trades or transactions given by clients (if any) independently in our system
- Process investor capital activities – subscriptions, redemption and transfer requests.
- Perform a reconciliation of trades provided by broker vs trades provided by clients
- Independent Portfolio Valuation of listed securities by Reuters, NYSE, model valuation
- Programming of customized management fee, performance fee (subject to hurdle and high watermark) in our system in accordance with the terms of PPM.
- Seeking operating expenses estimates from clients and revising them periodically wherever required.
- Integrating all the sub systems like investor allocation, portfolio monitoring, operating expenses in our Centralized system to generate standard accounting package.
- Standard monthly accounting package consists of Fund level Trial Balance, Balance Sheets, Profit and loss, Cash flow statements, realized gain reports, Investor allocation schedule, and Individual Investor statements