What services does a hedge fund administrator provide?
Administrators provide a wide array of services. The core service is to prepare an independent presentation of the fund’s monthly or quarterly accounting. A standard fund accounting deliverable will include the following:
- Preparation of the balance sheet and income statement
- Computation of net asset value
- Tracking of investor subscriptions and redemptions
- Calculation of investor ownership percentages
- Allocation of profits and losses among partners
- Computation of management fees and incentive allocations
- Time-weighted rate-of-return calculations on a month-to-date, quarter-to-date and year-to-date basis
Please view our sample accounting package.
Most administration firms offer additional services, which include:
- Investor relations services, including the preparation and distribution of investor capital account statements and other manager communications
- Please view our sample investor statement
- Learn about our secure document delivery portal
- Audit assistance, including the drafting of fund financial statements and footnotes and communicating directly with the auditors. (However, we do not audit, review or compile clients’ financial statements, nor prepare tax returns; we are glad to refer clients to specialists in these areas.)
- Transfer agent services, such as the collection, review and processing of subscription and redemption documents
- Authorized approval of withdrawals (for many hedge funds, an independent accountant or attorney must sign off on fund disbursements to managers)
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