Hedge Funds

Details matter in the world of hedge funds, and staying on top of the details is especially critical to a fund's profitability. As your partner, Fundadministration can provide the attention to detail your fund needs so you can focus on the big picture. As an experienced, independent hedge fund administration firm, we offer a full range of administration, accounting and customized client reporting services to support a fund throughout its entire investment lifecycle.

Using our integrated hedge fund services platform, we can streamline hedge fund operations, minimize administrative costs and help reduce operational risks. Our deadline-driven team is committed to offering innovative solutions and providing personalized service, making us the go-to administrative partner for a growing number of managers. Through a strong infrastructure and tight controls, investors can have complete confidence in the fund's administration and financial reporting.

Turn to us to:

  • Review offering documents and recommend operational procedures
  • Establish bank accounts for the fund and management company
  • Process and reconcile portfolio positions and cash activity
  • Facilitate and maintain copies of all wire transactions
  • Process subscriptions, redemptions and ownership transfers
  • Verify and comply with AML and KYC requirements
  • Calculate management, performance fees and incentive allocations
  • Verify and record income and expense accruals
  • Calculate net asset values (NAVs) for onshore and offshore funds as well as rate of return
  • Prepare accounting records, including financial statements, balance sheets, income statement and investor statements
  • Account for multi-series, multi-class and equalization structures
  • Coordinate tax preparation and provide audit oversight

Private Equity Funds

As specialists in private equity administration, our team of professionals has deep and broad experience with a range of fund types and investment strategies including real estate, venture capital, publicly traded portfolio companies, distressed debt and buyout funds. Our services encompass all aspects throughout the life of the fund, including fund formation, investor relations and accounting and reporting. As your single point of contact, we will work with you to reduce your administrative burden so you can focus on generating returns for your investors.

Fund Formation Services

  • Work directly with counsel and investment managers to review offering documents and recommended operational procedures
  • Establish and manage fund operating bank accounts
  • Personalize fund and investor reporting packages

Investor Services

  • Communicate with investors on fund execution documents
  • Review and maintain investor subscription documents
  • Process all investor correspondence, including capital calls, confirmation notices and investor statements

Accounting and Reporting Services

  • Support investment valuations and calculations
  • Reconcile portfolio positions and cash
  • Calculate management fees, performance fees and internal rates of return (IRR)
  • Conduct AML and KYC compliance
  • Calculate and document investor capital commitments
  • Arrange payment of all fund expenses
  • Issue investor statements, balance sheets, partnership allocations and profit and loss statements
  • Coordinate tax preparation and provide audit oversight

Fund of Fund Services

Fundaministration delivers broad support for fund of fund structures throughout a fund's lifecycle. Our services include assistance with fund establishment and structuring; fund accounting; customized reporting; estimated and final valuations at the fund level and for underlying securities; and regulatory compliance support. We can process information from all underlying investments made by the investee fund, both at the fund level and the underlying securities. With more than 20 years of industry experience, we have forged strong relationships with premier banks, legal experts and custodians, which helps ensure that funds are established efficiently and cost effectively.

Turn to us to:

  • Perform all AML and KYC procedures
  • Calculate net asset values (NAVs)
  • Provide reporting to both the investment managers and shareholders
  • Process subscriptions and redemptions for underlying fund investments
  • Prepare the annual financial statements
  • Provide custody for underlying fund investments
  • Customize reporting upon request
Fund of Fund technology

EB-5 Immigration Program Overview

In return for permanent U.S. residence, the Employment-Based Immigration Fifth Preference(EB-5) enables foreign nationals (their spouses and unmarried children under 21) to invest capital in new commercial enterprises that create local jobs, while satisfying particular requirements. Congress created the Immigration Act of 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. in 1992, Congress created the Immigration Investor Program, also known as the Regional Center Program. This sets aside EB-5 visas for participants who invest in new commercial enterprises associated with regional centers approved by United States Citizenship and Immigration Services (USCIS) based on proposals for promoting economic growth.

To participate in the EB-5 program, a prospective U.S. immigrant must make a $1 million, or under certain conditions a $500,000, investment in a new commercial enterprise in the U.S. that creates or preserves 10 permanent full-time jobs for qualified U.S. workers within two years. The compliance requirements are significant and must be approved by USCIS or an authorized regional center.

EB-5 Fund Administration

While the EB-5 industry presents a unique alternative method of funding, it lacks specific financial controls. Fundadministration can help by combining robust technology, world-class service and industry expertise with the industry's leading banks. We offer a comprehensive suite of solutions that provides compliance, transparency and oversight.

How We Can Help

Burdened by complex and confusing requirements, EB-5 investors can become frustrated. Fundadministration can streamline the process by escrowing investor assets in the subscription phase, tracking funds throughout the project life cycle and generating required documentation for the immigration phase. We have the knowledge, experience, proprietary technology and project management skills needed to protect the interest of immigrants, regional centers and developers.

We Offer:

  • Third-party independence and world-class service with lower costs
  • Safe, transparent and efficient deposits of investor assets
  • Centralized documentation of critical information throughout the entire project including W-8BEN, I-526 petition and filing status updates and 829 critical capital reporting

*For additional details on the process, please Click Here

*For more information regarding eligibility, application and requirements, please visit www.uscis.gov/eb-5

*Frequently asked questions about EB-5, Please Click Here

Standard Reports

We offer over 120 standard reports with varying formats for financial statements, detailed workings of fee calculations, share registries and securities/portfolio related information.

Click here to request a sample report

Forming a New Fund or Considering an Administrator Change? We can help.

Whether you are a well-established or an emerging manager, Fundaministration is your ideal partner.

We provide the guidance, support and world-class service you need from the concept stage through to fund formation. If you have been self-administering or would like to make a change to your current administration provider, consider partnering with us so you can focus on what you do best: trading and growing your business.

Our clients include a diverse mix of fund styles and strategies, such as: domestic and off-shore hedge funds, fund of funds, private equity funds, real estate funds, futures funds, commodity pools, family offices, managed accounts, brokerage firms, EB-5 administration and banks along with other types or private investment vehicles.

We offer:

  • Support and guidance with fund formation
  • Assistance with custodial accounts
  • Review of fund documents in consultation with your legal counsel
  • Access to a wide network of strategic partners including auditors, lawyers, tax advisers, banks and more.

Concerned about the impact of changing your fund administrator? Don't be. We make the process seamless.
Just click the image below to contact us or schedule a demo.

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Managed Accounts

Managed Accounts continue to gain traction due to the heightened interest of institutional investors in alternative investments. Managed accounts provide you with operational advantages of a pooled investment solution outside a fund structure. This innovative structure saves you administrative work, provides position-level transparency and greater liquidity. The increased flexibility means you can focus completely on your investment activities. At Fundadministration Inc. we are prepared for the continued growth and heightened service level expectations in this area. Fundadministration Inc. enhanced managed account platform offers independent middle and back officer services, produces daily, monthly and quarterly Net Asset Value (NAVs) as well as providing financial accounting along with custom reporting. We streamline the process for our clients and their investors allowing them to benefit from strong monitoring and control.

A full range of comprehensive services include:

  • Set up and maintain security master information in the accounting system
  • P&L and portfolio valuations
  • Electronic interface with prime brokers and investment managers
  • Daily reconciliation and maintenance of bank and broker accounts
  • Calculate and record interest and amortization accruals
  • Process all security transactions into the accounting records
  • Apply prices, foreign exchange rates, dividends and corporate actions to securities held in the portfolio via independent, third-party sources, and/or the investment manager
  • Perform pricing controls and procedures in accordance with the fund's valuation policy and procedures
  • Identify, research and resolve reconciliation discrepancies
  • Calculate management and performance fees
  • Calculation of the NAV at required frequency
  • Wide range of customizable reports independently produced

Other Services

Foreign Account Tax Compliance Act (FATCA)

What is FATCA?

FATCA is a U.S law designed to detect and deter tax evasion by U.S. citizens and residents who use offshore assets and accounts to hide money outside the United States. FATCA encourages Foreign Financial Institutions (FFIs) to report information about their U.S. account holders and foreign entities. All FFIs must comply with FATCA or be subject to a 30% withholding tax penalty on certain U.S. sources of income. Both U.S. financial institutions and other U.S. withholding agents must withhold 30% on certain payments to foreign entities that do not document their FATCA status and report information about certain non-financial foreign entities.

Who must comply?

FATCA applies to all FFIs, including, but not limited to banks, investment funds (such as hedge funds and private equity funds), investment managers, brokers, custodians and insurance companies.

What are the FATCA requirements?

To remain FATCA compliant, FFIs are required to:

  • Register with the IRS
  • Review their investor base
  • Conduct due diligence on investors and remediate documentation
  • Implement new tax information reporting and withholding procedures.

How we can help

We are committed to assisting clients with complying with their FATCA obligations. Fundadministration can:

  • Register FFIs with the IRS through the office IRS Portal
  • Serve as an authorized third party for IRS FFI registration
  • Complete FFI agreement and manage any ongoing correspondence.
  • Validate taxpayer identification numbers for underlying beneficial owners
  • Provide status updates for pending FFI registrations and FFI agreements generated from approved FFI registration submissions
  • Disseminate global intermediary identification numbers (GIINs) to approved counterparties.
  • Maintain all client data related to FATCA
  • Renew GIINs and FFI agreements as needed
  • Perform year-end filings and upload to portal,

To inquire about our services Click Here

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Anti-Money Laundering

Fundadministration maintains policies and procedures that ensures we are in full compliance with all applicable laws and regulations regarding anti-money laundering (AML). We have procedures in place to prevent and detect money laundering, terrorist financing and other illegal activities, as well as to take affirmative steps to report to the appropriate authorities any known or suspected money laundering activity, suspicious transactions and other criminal activity. All employees must be trained and comply with our written AML policies and procedures, which are subject to review by our independent auditors. Fundadministration's policy is to only deal with individuals and organizations of good standing and sound repute. All prospective investors, sponsors and counterparties must be properly introduced and submit references and other background information to ensure that this standard is met.

Fundadministration uses the latest Know Your Customer (KYC) technology from KYCSphere to:

  • Perform customer onboarding
  • Screen sanction and watch lists
  • Identify politically exposed persons, fraudsters and criminals
  • Manage risk and compliance functions
  • Perform customer due diligence and Enhanced due diligence (EDD)
  • Monitor fraud and money laundering activities
  • Manage and process alerts
  • Consolidate information from cases involving suspicious activities
  • Generate and manage regulatory reports
  • Continually receive and monitor regulatory compliance news alerts

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Outsourced CFO Services

Hedge fund managers recognize the value of the insights and expertise that a Chief Financial Officer (CFO) brings to the table. However, many fund managers often elect to outsource CFO services to streamline their management teams and reduce costs. Therefore, many or our clients rely on us as their outsourced hedge fund CFO because they know they can trust our extensive experience and professional approach.

Turn to us to:

  • Provide professional advice on all operational and organizational issues
  • Assist in establishing internal controls, accounting policies, and financial procedures
  • Provide regular updates on regulatory issues
  • Consult with tax advisors on tax planning
  • Work with tax preparer to prepare and file tax returns
  • Assist with insurance planning and procurement
  • Open bank accounts
  • Help with year-end processes and procedures
  • Review and prepare monthly financial packages to ensure accuracy
  • Managing annual audits
  • Draft and/or review financial statements
  • Monitor cash management and controls
  • Calculate fees and manage cash flows, projections and budgets
  • Reconcile cash
  • Establish and maintaining trading, custody and financing relationships
  • Attend meetings with potential investors and service providers
  • Respond to investor inquires and requests
  • Facilitate investor introductions
  • Assess work of other service providers
  • Manage human resources
  • Access to full staff

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Cash Management

Our firm provides cash management and intermediary services, which offers an additional layer of independence between our clients and their investors. While we are hired by our clients, we also maintain a fiduciary responsibility to our clients' investors, keeping their interest in mind.

Leveraging our long-term banking relationships, we can expedite opening accounts for our clients. Given our deep experience, we are able to navigate the requirements for some of the most complex banking industry regulations, such as Basal III, KYC and AML.

We maintain the highest standards of internal and operational controls, which are regularly tested and verified by independent certified public accountants. We follow industry best practices to protect our client's assets.

We Provide:

  • Daily cash reconciliations in all account currencies
  • Complete record keeping and reporting
  • Dual signatures required
  • Multi-level transaction review
  • Expense management
  • Check writing and wire transfers
  • Redemption processing

Transfer funds for margin calls

  • AML and KYC compliance

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Registrar and Transfer Agency Services

We are a full service registrar and transfer agent with tailored solutions to meet the unique needs of our clients. As a registrar, we maintain the register for each issued security, record total shares outstanding and maintain records for each individual and entity that owns the security. As a transfer agent, we issue and cancel certificates to reflect changes in ownership.

We provide:

  • Onshore and offshore share registry and transfer agency services
  • Processing for all investor transactions (subscriptions/contributions, redemptions/withdrawals, transfers, ditributions)
  • Lot level equalization calculations
  • Maintenance of investor registers
  • Preparation and dissemination of investor transaction confirmations and statements
  • Investor communications
  • Investor audit confirmations
  • AML and KYC compliance
  • Verification of investor ERISA status
  • Secure reporting

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Corporate Accounting and Bookkeeping

At Fundadministration, we believe even routine accounting and bookkeeping functions deserve special treatment. Our knowledgeable and professional team provides the highest level of accounting and bookkeeping expertise for all of your needs. With our customized processes and cutting edge technology, we can help small and mid-size businesses reduce the amount of time and expense spent in this area.

Bookkeeping and Bill Paying Services

Accounts Payable

  • Client invoices and expenses
  • Check distribution and reconciliation
  • Credit card transactions reporting
  • Bank charges
  • Prepare bank reconciliation
  • Prepare credit card reconciliation

Accounts Receivable

  • Prepare and distribute fee invoices
  • Process cash receipts
  • Record bank deposits
  • Receivable reporting

General Ledger

  • Fixed asset / Depreciation management
  • Prepaid / Accrual expense entries
  • Monthly close

Taxes and Payroll

  • K-1 and tax coordination
  • Payroll facilitation with third party
  • 1099 preparation
  • Sales tax reporting

Financial Statements

  • Partner capital
  • Profit and loss statement
  • Balance sheet
  • Cash flow statements
  • Financial position
  • Budgets

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Financial Statement Preparation

Preparing annual financial statements can be a complex and time-consuming process, and given increasing regulatory requirements, it's more important than ever for fund managers to get it right. As your trusted partner, we can coordinate with your Fund's independent auditors to draft year-end financial statements and accompanying footnotes. We efficiently and accurately track, reconcile and report all investment and cash flow transactions and prepare monthly or quarterly financial statements, net asset values, investor roll-forward schedules, management and incentive fee reports and other supporting reports.

Turn to us to:

  • Prepare a complete set of financial statements, including footnotes and supporting schedules
  • Coordinate with and assist all service providers as needed
  • Compile all schedules required to prepare K-1 reports
  • Complete year-end audit confirmations
  • Provide relevant documents to support the audit process

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Liquidation Services

The decision to bring an investment fund to a close is never easy, but Fundadministration can simplify the process. Our experienced team can provide support throughout the entire liquidation process and create tailored solutions based on your needs and objectives.

Turn to us to:

  • Liquidate fund assets and distribute accordingly
  • Communicate with investors
  • Coordinate with all service providers (legal counsel, auditors and tax professionals)

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MainstreamBPO Services

Fundadministration, Inc., is a wholly owned subsidiary of MainstreamBPO group, a leading fund administrator for fund managers, superannuation trustees and listed companies. MainstreamBPO is an ASX traded company with over $95 billion in funds under administration and a network of offices across Australia, Hong Kong, Singapore, Cayman Islands and United States. Our clients can choose to outsource all – or a part - of their administration to us.

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