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Private Investment Fund Administration

Private Investment Fund Administration

Fund Launch

Operational readiness and effective governance are crucial to get right when establishing a new fund and/or a new investment firm. GPFS has experience with multiple firm and fund launches so that GPs can focus more time fundraising and deal sourcing.

Throughout the launch, GPFS will partner with clients on several areas impacting the back office, such as:

  • Entity incorporation and bank account set up
  • Partnership agreement review
  • Operational due diligence support
  • Policies and practices
  • Investor reporting best practices including ILPA and Invest Europe
  • Technology including investor portal selection
  • Coordination of compliance and AML establishment
  • Treasury practices

At GPFS we understand that each product fundraise requires firms to prepare for the fiduciary responsibilities that come with raising investor capital. We will help you be ready for that responsibility.

Capital Call and Distribution Processing

GPFS professionals prepare and review client capital activity following strict policies and procedures to ensure compliance with fund organizational documents, accounting, and regulatory standards.

GPFS will calculate the following for client review:

  • Management fee and management fee waiver (deemed contributions)
  • Realised Carried Interest
  • Limited partner and general partner allocations
  • Investment allocations across fund structures including co-investment
  • Subsequent close re-balancing
  • Net capital calls and distributions
  • Remaining commitment
  • Capital gain or loss

At GPFS we understand that each product fundraise requires firms to prepare for the fiduciary responsibilities that come with raising investor capital. We will help you ready for that responsibility.

Subsequent Close Equalization

From first close to final close GPFS will ensure partner allocations are calculated in accordance with fund documents to ensure equitable treatment is preserved amongst investors.

For funds with multiple closes GPFS will:

  • Calculate capital due from new partners
  • Calculate subsequent close interest
  • Process return-of-capital to existing partners
  • Re-calculate investment allocations for funds with multiple vehicles
  • Reflect rebalancing in the accounting records

At GPFS we understand that each product fundraise requires firms to prepare for the fiduciary responsibilities that come with raising investor capital. We will help you be ready for that responsibility.

Carried Interest Calculations

GPFS has experience with calculating carried interest for a variety of different fund structures including those that use the American or European waterfall method. We invest time in understanding the intention of the organizational documents and ensuring the data being used in the calculations harmonizes with that intention.

GPFS calculates:

  • Realised carried interest by partner
  • Unrealised / accrued carried interest by partner
  • Whole-fund, deal-by-deal, cross-collateralised methods
  • Allocation of carried interest to carry recipients
  • Tax distributions
  • Blocker entity impact

Accounting and Reporting

Using best in class accounting software GPFS maintains the general ledger following strict internal controls that are independently tested annually during our annual SOC 1 Type II audit. GPFS employees have significant experience with US GAAP, UK GAAP and IFRS as well as reporting standards issued by ILPA.

GPFS maintains and prepares:

  • General Ledgers
  • Commitment Ledgers
  • Memo accounts
  • Quarterly financial statements including coordination for the annual audit
  • Partner capital accounts
  • ILPA reporting
  • Regulatory reporting (AIFMD)

Treasury

While adhering to strict internal controls, GPFS will provide a range of reporting and transactional support for client treasury demands.

Investor Communications

GPFS provides clients bandwidth to focus on the broader investor needs while we manage activities such as distribution of documents, response to back office inquires and maintenance of investor portal data.

General Partner/Carry Recipient Reporting

In addition to capital account schedules, GPFS can create custom reports to present cumulative carried interest and fee waiver (deemed contribution) information. Employees of the firm and other investors in these vehicles can see across their firm portfolio.

CFO Support

GPFS can providing a supporting role to CFO’s or firms without a CFO. As an example, our professionals can provide insight into best back office practices, key vendor selections, coordination of annual audits, establishment of banking relationships assistance with investor due diligence.

3rd Party Liaison

GPFS can assist with the selection and coordination of key 3rd party vendors for services such as:

  • Independent audit
  • Tax preparation
  • Regulatory compliance
  • Investor portal
  • Banking

AML

GPFS can offer a complete solution that will support the client in the AML/CDD onboarding process for new investors.

Let’s Discuss Your Needs & Objectives

Even if you’re exploring outsourced fund administration for the first time or making a change in providers, we would love to talk.
GP Fund Solutions

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