It also strengthens the fund’s reputation, boosts investor confidence, and helps attract future investments. On the flip side, errors in NAV calculations can lead to confusion or erode trust, potentially jeopardizing the fund’s long-term growth. However, the hedge fund services landscape is evolving as independent firms offer compelling alternatives. BNY’s Investor Services and Reporting will help you maintain oversight of transactions and cash movement. You’ll get access to NEXEN®, our proprietary portal for investor services and reporting, unlocking a focused set of insights, powerful transactional tools and advanced reporting capabilities that will help set your funds apart. Our company secretaries work closely with board and hedge fund management teams to ensure that all corporate governance processes are handled with the highest level of professionalism and efficiency.
- We give fund managers the unique opportunity to view and manage their portfolio from top to bottom.
- Research reveals that operational failures account for 50% of hedge fund closures, while investment-related issues contribute to another 38%.
- Managers of funds often choose to outsource some or all of these activities to external specialist companies, such as the fund’s custodian bank or transfer agent.
- In addition to Form PF, registered private fund advisers must now provide quarterly performance reports to investors and conduct annual “surprise” audits.
- However, independent firms also play a key role, often providing more specialized expertise and white-glove service.
With nearly €7.26 trillion in net asset value, a 41% growth since 2015, and over 3,900 institutional investors, the AIF market is thriving. Global fund managers are seizing opportunities to tap into substantial capital sources. With the right third-party fund administrator, fund managers can focus on raising capital.
Hedge fund administration encompasses a wide range of operational and regulatory support functions that ensure the smooth running of a hedge fund. These functions include financial reporting, investor services, tax compliance, regulatory filings, and cash management. Outsourcing fund administration to a third party can provide private equity, hedge funds, venture capital and real estate fund managers with much-needed back-office expertise and support. This may be more cost-effective and efficient than managing these activities in-house. Charter Group Fund Administration, for example, offers tailored AML, CRS, and FATCA compliance services for offshore funds. Their in-depth knowledge of regional regulatory requirements allows hedge funds to meet their obligations while staying focused on investment strategies.
- Depending on your fund’s complexity, size, investor reporting needs, tech stack usage and other complementary services (such as valuation or loan administration), the discovery and scoping phase will vary.
- Precise NAV reporting empowers investors to make well-informed decisions while showcasing the fund’s dedication to meeting regulatory standards.
- Experts predict that up to 10% of all assets worldwide could be tokenized by 2030, compared to less than 1% today.
- A 2024 HedgeWeek survey found that 50% of hedge funds are considering or planning to outsource additional functions, with 70% of alternative investment managers expecting to expand their outsourcing efforts.
Supporting VC-firm Rethink Ventures with its mobility and logistics fund
Our offerings include a range of FX hedging solutions to help you track the efficiency of your share class hedging, reduce your operational risk and provide execution transparency. With a global presence and local market expertise to support FX execution, our teams will help you navigate the range of solutions to meet your needs. Learn more about BNY’s capabilities in Foreign Exchange, as well as other execution and product offerings across Capital Markets, Financing and Liquidity. As hedge funds navigate an increasingly complex market and regulatory environment, the right hedge fund services partners have never been more important.
They also manage multi-currency transactions, foreign exchange calculations, and derivatives – key elements in many hedge fund portfolios. From this, they generate monthly, quarterly, and annual financial statements that give investors detailed insights into the fund’s performance. Waystone delivers a comprehensive suite of accounting administration services designed to support hedge funds at every stage of their lifecycle. Our global expertise, combined with local insights, allows us to offer tailored fund accounting solutions that cater to a diverse range of fund types, investment strategies and industry segments. With the right outsourced fund administrator, operations are often easier to manage and provide a better value for both the managers and investors alike. The business, which expands IQ-EQ’s footprint in the Boston market, was acquired from the majority shareholder, Everlane Equity Partners, and principal employee shareholders.
TaxPreparation
My account manager has been extraordinary in managing any issues and promptly handling them. Engaging NAV to handle our fund administration is among one of my best operations decisions. The quality of their work is impeccable and customer service requests are always handled in a very timely manner. Effective hedge fund administration is no longer a back-office function – it’s a strategic imperative. While these companies represent some of the industry’s key players, evaluating each administrator based on their capabilities, technology infrastructure, and alignment with your fund’s unique requirements is essential.
An Ultimate Guide to Outsourcing Fund Administration
We utilize FIS Hedge Fund Portfolio Manager (formerly Sungard VPM) and Advent Geneva World Investor to provide full service fund administration services. South Watch provides high quality, transparent hedge fund administration services so you can focus on your investors and your portfolio. We offer a tailored approach to hedge fund management, ensuring that each solution is customized to meet your specific needs. By partnering with Waystone, you gain a trusted team that enhances your fund’s efficiency while helping you navigate complex regulatory landscapes. To find out more about our Hedge Fund Administration Solutions please reach out to your usual Waystone representative or contact us below.
Across our offices, the Maples Group offers complementary fiduciary support, bringing in-depth knowledge and expertise of regulatory and investor requirements and best practice to ensure the highest standards of corporate governance. We maintain accounting records for funds across a wide range of investment strategies and instrument types and ensure timeliness and precision in the delivery of our NAVs. Managers of funds often choose to outsource some or all of these activities to external specialist companies, such as the fund’s custodian bank or transfer agent. Depending on your fund’s complexity, size, investor reporting needs, tech stack usage and other complementary services (such as valuation or loan administration), the discovery and scoping phase will vary. We handle all the accounting, reporting and investor servicing for your fund including position reconciliations, performance calculations and independent valuations of your portfolio.
They prepare to officially start taking over admin functions, provide training and ensure your investor portal is ready by the date that the administration of your fund starts. “Independent fund administration is seen as a strength to investors and within the industry is seen more and more as a best practice.” The right middle-office partner will tailor their services to your unique workflows while providing the control environment and data transparency you need. When evaluating fund administrators, these are the six main things you want to think about. What sets NAV apart is their exceptional service, unwavering reliability, and advanced technology.
By partnering with the right administrator and leveraging advanced technology, fund managers can navigate the challenges of the industry with confidence and focus on delivering exceptional results to their investors. While there is no law that requires a domestic hedge fund to have an administrator, there is no real good reason why a hedge fund should not have an administrator. Outside verification of a hedge fund’s numbers, especially given the current state of the capital markets, is becoming a requirement for hedge fund investors.
Each client is provided with their hedge fund administration services own team of Waystone hedge fund administrators and a dedicated primary contact person who oversees all elements of the relationship with Waystone. At the heart of our hedge fund accounting services is a flexible and scalable real-time accounting system. Whether you are managing an incubator fund or a large, mature fund, our accounting platform is flexible, scalable, and ensures that accounting needs are met with precision and efficiency.
This allows fund managers to focus on investment strategies while ensuring accurate reporting and adherence to regulations. SS&C GlobeOp, a subsidiary of SS&C Technologies, is one of the largest fund administrators globally and is recognised for its advanced technology solutions and specialised fund administration services. SS&C GlobeOp has become a trusted name in the industry by combining extensive experience with cutting-edge technology, serving hedge funds of various sizes and complexities.
As your fund evolves, make sure it has access to world-class fund administration, accounting, investor services and reporting to achieve it’s potential. Hedge Fund Administrators play a vital role in helping funds stay accurate, run smoothly, and follow regulatory rules with hedge funds managing over $4 trillion globally. From raising capital and fund establishment at the GP level, to deploying capital at the LP and fund level. To monitoring the investment and reporting, and realizing investments and wind-up with the portfolio, CSC provides a holistic approach to fund services. Our proprietary multi-asset order and portfolio management platform, offering real-time access to portfolio P&L, exposures, and a full suite of risk analytics, customized to your portfolio’s unique requirements.