Hedge Fund Administration

At WCG we can offer customized accounting and administration solutions for your organization. We understand that when investors make their investment decisions, they are not only focusing on the fund’s performance, but also on its infrastructure. WCG offers the luxury of having the best in the industry as part of your team to help you with your accounting and administration needs, regardless of the size of your fund. At the end of each month, our team will gather financial data from prime brokers, banks, and other sources and enter all investment transactions, as well as investor subscriptions and redemptions, into our fund accounting system.

Our fund accounting system will calculate the net asset values, performance and management fees, reconcile and record income/expense accruals, and roll forward the portfolio investments and capital balances in compliance with the fund’s governing documents and in accordance with GAAP. We also review and reconcile prime broker/custody agent’s statements to ensure completeness and accuracy. Different types of reports can be generated based on the fund structure or the preference of the manager upon request.

We will work with your management team to customize an approach based on a thorough examination of your organization’s concerns, needs, and expectations. We work with clients in various stages of their business life cycles, from start-ups to established organizations. For most of our clients, Fund Accounting Services includes the following:

  • Monthly / Quarterly preparation of Fund’s financial statements, including Balance Sheets, Income Statements, Partners’ Capital Allocation Schedules, and Fund Performance Schedules
  • Monthly/Quarterly preparation of Investor Statements
  • Record expenses and capital transactions in accordance with US GAAP and Fund governing documents (including accruals, subscriptions and redemptions)
  • Reconcile cash accounts with statements provided by prime brokers or custodians
  • Maintain a record of each investor’s capital balance and allocate profits and losses in accordance with the most current limited partnership agreement (or equivalent) provided by the Fund
  • Maintain documentation of subscription and redemption notices
  • Calculate management fee and incentive allocation / carried interest based on the Fund’s governing documents
  • Support the AML and KYC compliance requirements in connection with offshore jurisdictional and U.S. Patriot Act Requirements
  • Provide the Fund’s tax advisor with accounting records to assist in the preparation of the Fund’s annual income tax returns
  • Provide necessary accounting records and workpaper schedules for the Fund’s annual audit
  • Provide annual financial statement preparation services

Audit Assistance

We can provide assistance and will work closely with the fund’s auditors to produce quality information for the annual audit on a timely basis. These functions include preparing financial statements for annual audits and related footnote disclosures, the condensed schedule of investments, confirmation letters, and providing independent auditors with annual audit packages.

Management Company Accounting Services

In addition to the fund accounting services, WCG can also assist you with the accounting for the management company entity, including preparation of monthly balance sheets and income statements, processing of payroll for key personnels and employees, monthly reconciliation of cash accounts, and processing the income and expense accruals in compliance with Management Company’s operating agreement and in accordance with United States Generally Accepted Accounting Principles.

Tax Preparation Services

Tax regulations surrounding the hedge fund industry can be daunting. Whether it is a state and local or federal income tax legislation, the implications for hedge funds are substantial. We work closely with tax CPAs who have experience in guiding clients through a full spectrum of hedge fund tax issues. We assist in preparing fund’s annual income tax return filings with Federal K-1 Forms.

 

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