Hedge fund administrators are increasingly focusing on specialized services to support new asset classes, with cryptocurrency funds standing out as a rapidly growing segment. Managing crypto funds presents unique challenges, including custody, valuation, and operational controls for digital assets. Automation plays a key role in simplifying client interactions and flagging data inconsistencies, which improves reporting accuracy.

Fund Administration & Fund Services

We provide asset managers with daily reconciled cash and position reporting using a dedicated state-of-the-art cash and position reconciliation software. As part of our daily service, we will automatically upload your trade files into our core administration platform and complete three-way reconciliations between you and the custodian or prime broker. Cash and position reconciliations breaks are reported to you for further action, and you also have the ability to view daily cash and positions from anywhere in the world on our secure 24/7 reporting platform. To complement the daily administration support service, we also offer a daily performance and risk reporting solution through an enhanced reporting support service. Offshore hedge fund administration generally refers to the administration of an offshore hedge fund administration services hedge fund. Typically the process and function will be the same, but there are more issues that come into play with an offshore hedge fund.

Find out how our fund administrative services reduce the admin burden for our clients so they can keep growing. Large firms – these firms are well-established within the hedge fund industry and are thriving businesses themselves. These firms may be subsidiaries of large international banks or (former) investment banks.

In short, reliable fund administration is more than just a safeguard against errors – it’s the foundation that allows hedge funds to succeed in an increasingly competitive and regulated market. Bernie Madoff’s infamous Ponzi scheme, which defrauded investors of billions, was enabled by inadequate audits and oversight. Similarly, The Bayou Group deceived investors out of over $400 million through fraudulent accounting and a fake auditing firm.

An Ultimate Guide to Outsourcing Fund Administration

You can anticipate compliance and regulatory changes by working with a partner who’s proactive and understands your needs. South Watch provides fund administration, tax preparation, outsourced CFO and hedge fund consulting services to hedge funds of all sizes from startups to registered investment advisors. Ultimately, hedge fund services should provide peace of mind that your operational functions are in good hands so you can focus on delivering for your investors.

As you continue working together, they become a more valuable resource for ideas on improving your fund processes and systems. As I noted in an article on hedge fund expenses, the costs of the administrator are usually paid by the fund and not by the management company. Some managers may choose to pay the administration costs so that these costs will not be a drag on performance.

Waystone’s regulatory and compliance services are designed to help hedge fund managers navigate the complex regulatory landscape, ensuring full compliance with all applicable laws and regulations. Our team of hedge fund administrators provides ongoing support to minimise risks and enhance operational efficiency. Citco, SS&C GlobeOp, Northern Trust, and BNY Mellon have each demonstrated industry leadership, providing services tailored to the complex and dynamic world of hedge funds. These administrators offer comprehensive solutions that support fund managers in meeting regulatory requirements, maintaining investor relations, and accessing high-quality financial reporting. Fund administrators play a pivotal role in hedge fund operations, offering services that ensure accurate financial reporting, regulatory adherence, and clear communication with investors.

• Financial reporting We provide semi-annual and annual financial statements, coordinate annual fund audits, prepare various regulatory reporting forms, along with preparing schedules of investments.
• Beyond accounting and NAV calculations, fund administrators are instrumental in helping hedge funds navigate the complex regulatory landscape.
• We recognize the challenges that come with managing the intricate details of our funds.
• These firms have shown an ability to attract top industry talent and invest heavily in innovation to serve a fast-evolving market.

Technology is reshaping fund administration, with tools like AI, blockchain, and cloud computing leading the charge. Artificial intelligence, for instance, enhances portfolio analytics by processing massive datasets in real time, uncovering insights that can refine investment strategies. Administrators assist by identifying reportable accounts, collecting necessary documentation, and submitting reports to tax authorities. For offshore funds, particularly those operating in jurisdictions like the Cayman Islands, compliance with global standards – often shaped by FATF recommendations – is especially challenging.

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Outsourcing offers hedge funds the opportunity to streamline operations, improve transparency, and leverage advanced technology. 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. South Watch is a full service independent hedge fund administrator led by Paul Timmins, Kirby Richards and Dave Loescher. We are a team of experienced, knowledgeable individuals focused on providing high quality service. We are a boutique, full service, hedge fund administration firm with institutional quality infrastructure and an excellent value proposition. Our team’s 70 years of experience and dedicated client focus have earned us an outstanding reputation in the industry.

• We surround this impeccably designed technology with fund-caliber teams – highly experienced experts, aligned specifically to your organization.
• You can rely on our consistent and accurate  servicing, tailored to your specific needs, using cutting-edge technology platforms, and multi-jurisdictional operational expertise.
• Third-party administrators invest heavily in institutional-grade systems, from automation tools to compliance platforms, giving funds access to these capabilities without the high upfront costs.
• It’s rare to find a team so dependable and consistent in their pursuits of excellence.

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.

What are the benefits of outsourcing hedge fund administration?

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.