Services

Accounting and Administrative Solutions for the Private Equity Industry

Advanced Fund Administration’s commitment to state-of-the-art technology is what sets us apart from other fund administrators.  We constantly evaluate new products to provide our clients with the very best service we can offer.   The cornerstone of AFA’s fund administration offering is a fully integrated accounting platform to include SunGard and Paxus.  AFA uses the Paxus accounting and reporting platform to service private equity, real estate, and venture capital funds.  The Paxus platform also facilitates AFA’s communication with investment managers by providing them with timely reporting and analysis.  The Paxus platform’s integrated investment lifecycle and allocation capabilities provide AFA with a unique advantage in servicing private equity funds. Paxus is scalable as the number and size of the portfolio investments grow, resulting in a cost effective service model to support NAV calculations, allocations, performance reports, investor capital statements, and capital call notices.

AFA is a SSAE 16 compliant fund administrator offering a comprehensive solution to private equity funds and related management companies, and is flexible in providing fund administration services to address client needs. AFA’s Private Equity expertise encompasses all types of private equity funds including real estate, venture capital, public traded portfolio companies, distressed debt and buyout funds.  A critical factor separating AFA from other firms in this space is our in-depth knowledge of the Private Equity industry and our commitment to understanding the economics of each deal, while ensuring the governing fund documents properly reflect these economics prior to the commencement of operations.

AFA utilizes the Paxus accounting and reporting platform to service private equity, real estate, and venture capital funds, and to communicate with investment managers to provide timely reports and analysis. The Paxus platform’s integrated investment lifecycle and allocation capabilities provide AFA with a unique advantage in servicing private equity funds. Paxus is scalable as the number and size of the portfolio investments grow, resulting in a cost effective service model to support NAV calculations, allocations, performance reports, investor capital statements, and capital call notices.

Investment Tracking and Analysis

AFA records all aspects of our clients' portfolio company holdings beginning with equity or debt securities transactions and storing key parameters (e.g. conversion ratios, expiration dates, payment schedules and restrictions).  Portfolio investment valuations are updated in accordance with the fund’s pricing policies, to allow for monitoring of overall fund performance. In addition, we have the flexibility to customize reports, providing the investment manager with a comprehensive analysis of fund performance and transparent communication of fund results to investors.

Investor Allocation and Reporting

Paxus features an integrated allocation engine which can perform complex calculations such as waterfalls, tiered hurdle rates, and claw backs, as well as an extensive design allowing AFA to customize fee calculations for its clients. Paxus provides complete transparency, while offering multi-currency support and flexible reporting. For distribution of investor statements, Paxus also offers a secure investor web-portal featuring a two-factor authentication process and the ability to securely partition folders inside the data room for controlled access.

Accounting Services

  • Maintain tax lots of investments and record Fund investment transactions in the Fund’s general ledger accounts
  • Verify the market value of portfolio against the fund’s valuation policy and/or through the use of independent pricing sources
  • Reconcile portfolio positions and cash balances to prime broker/custodian bank
  • Calculate and accrue all income and expenses
  • Calculate gains and losses (security and currency)
  • Prepare and deliver financial reports and analysis to fund managers

Investor Services:

  • Perform AML/KYC due diligence
  • Facilitate the capital call process and record subscriptions/redemptions and distributions
  • Maintain share register and related activity
  • Calculate economic allocation to investors of book profit and loss
  • Calculate management fees and investor incentive fees and reallocation (or payment) of profit to Advisor
  • Prepare and distribute investor statements via web-based investor portal and respond to investor inquiries

Cash Management Services:

  • Establish escrow account in the Fund’s name and serve as signatory on the account
  • Coordinate/assist with the movement of money for capital calls, subscriptions/redemptions, distributions, and vendor invoice/expense payments 

Year-End Financial Services:

  • Coordinate audits by independent accountants
  • Prepare initial draft of fund’s annual financial statements with footnotes
  • Regulatory Reporting Assistance

Provision of Registered Office Services

FATCA Reporting Services:

  • Validate Forms W-8 and W-9 and other documentary evidence pursuant to IRC §1441 & §1471-1474
  • Prepare Foreign Financial Institution (“FFI”) agreements between Subscriber and the Internal Revenue Service (“IRS”), and register such FFIs with the IRS as required
  • Serve as Authorized Third Party (“ATP”) for purposes of IRS FFI registration or completing FFI Agreement as well as managing ongoing correspondence regarding same
  • Provide status updates for pending FFI agreements, along with FFI global intermediary identification numbers generated from approved FFI agreements
  • Validate account holder taxpayer identification numbers as required, including social security numbers, employer identification numbers, and global intermediary identification numbers
  • Provide calculations of withholding pursuant to IRC §1441, §6041 and §§1471-1474
  • File required Form 8966, Form 1042-S and other information reporting with either the IRS or local government