Use case · Fund administration
Hire a fund administrator that runs NAV, investors and reporting as one process
Fundtec administers hedge, private equity, venture, credit, real estate and digital asset funds from NAV calculation through investor reporting, audit and regulatory filings.
In one minute
A fund administrator is the independent firm that keeps a fund’s books, calculates its net asset value, maintains investor capital accounts, onboards and screens investors, and prepares financial statements and regulatory filings. Fundtec provides full-scope fund administration for open-ended and closed-ended funds across the major fund jurisdictions, delivered on its proprietary Tychi platform with ISO 27001-certified controls.
Managers at a decision point: a fund to launch, an administrator to change, or an operating model that has to scale.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What a fund administrator does
A fund administrator is the independent record-keeper for a fund. It books every trade, cash movement and expense, values the portfolio, calculates the NAV, allocates profit and loss across investors, processes subscriptions and redemptions, and produces the statements that investors, auditors and regulators rely on. Investors and allocators treat an independent administrator as a core control: the manager runs the portfolio, the administrator confirms what it is worth and who owns it.
Fundtec delivers the full scope as one process rather than a set of hand-offs. The same team that reconciles positions to the prime broker also calculates fees, maintains capital accounts and answers investor queries. That continuity is what keeps month-end short and audit queries rare.
NAV calculation and fund accounting
- 01
Trade capture and positions
Daily trade capture from brokers, OMS and custodians, with position and cash reconciliation against every counterparty.
- 02
Pricing and valuation
Independent prices under the fund’s valuation policy and pricing hierarchy, with stale-price and tolerance checks and escalation of hard-to-value positions.
- 03
Income, expenses and accruals
Interest, dividends, financing, borrow costs and fund expenses accrued in a double-entry general ledger with a chart of accounts built for the fund.
- 04
Fee calculations
Management fees, performance fees, high-water marks, hurdles and crystallization, calculated by class, series or investor as the documents require.
- 05
NAV pack and sign-off
A NAV pack with trial balance, P&L attribution, reconciliations, pricing exceptions and fee workings, reviewed under the four-eyes principle before release.
- 06
Cadence to match the fund
Daily, weekly, monthly or quarterly NAVs, and quarterly or annual closes for closed-ended funds.
Investor and capital accounting
- 01
Series and class accounting
Series accounting and multi-class structures with separate fee, currency and hedging terms, including roll-ups at crystallization.
- 02
Equalization
Equalization credits and depreciation deposits so each investor pays performance fees only on their own gains.
- 03
Side pockets
Side pocket creation, participation tracking and realization, kept separate from liquid NAV.
- 04
Capital calls and distributions
Commitment tracking, capital call and distribution notices, and investor-level unfunded commitment balances for closed-ended funds.
- 05
Waterfalls and carried interest
European and American distribution waterfalls, preferred return, catch-up and carried interest accruals, with clawback tracking.
- 06
Performance metrics
Investor and fund-level IRR, TVPI, DPI and MOIC for private markets reporting.
Financial statements, audit support and investor services
Financial statements
Annual and interim financial statements under US GAAP or IFRS, including schedule of investments, notes and financial highlights, prepared for audit.
Audit support
Year-end audit packs, confirmations, PBC lists and query management. We work directly with the auditor so the manager is not the go-between.
AML/KYC and investor onboarding
Investor due diligence, sanctions and PEP screening, risk rating and periodic refresh under the fund’s AML program.
Transfer agency
Transfer agency: subscriptions, redemptions, transfers and switches processed against the offering terms, with a maintained register of investors.
Side letters
Fee rebates, reporting commitments and liquidity terms from each side letter tracked and applied.
Treasury and payments
Wire preparation, capital call collection, redemption and distribution payments under dual authorization.
Regulatory and tax reporting we support
Fundtec prepares the data and filings within its scope. The fund, its directors or its advisers remain responsible for submitting and signing regulatory and tax returns.
| Filing or report | Applies to | Fundtec’s role |
|---|---|---|
| FATCA | Funds classified as foreign financial institutions | Investor classification, self-certification review, reportable account data and report preparation |
| CRS / AEOI | Funds in participating jurisdictions | Due diligence on account holders and controlling persons; AEOI report preparation |
| CIMA Fund Annual Return (FAR) | CIMA-registered Cayman funds | Financial data and supporting schedules prepared alongside the audited financial statements |
| Form PF support | SEC-registered advisers meeting the filing thresholds | Fund-level data extraction: exposures, counterparties, liquidity and investor concentration |
| AIFMD Annex IV support | Managers marketing funds in the EU | Portfolio, leverage and liquidity data for the manager’s filing |
| Schedule K-1 data | US partnerships and Delaware LPs | Partner capital accounts and allocations for the fund’s tax preparer. See K-1 support |
Investor reporting and the investor portal
Investors receive capital statements, contract notes, capital call and distribution notices and tax documents through a secure portal, with email and SFTP delivery where preferred. Managers get the same data as NAV packs, investor registers, flow reports and fee reports, and through API where they want it in their own systems.
Everything runs on Tychi, Fundtec’s AI-enabled accounting and operations platform. Tychi combines investor lifecycle, flexible data ingestion from API, spreadsheet and PDF sources, a double-entry general ledger with a custom chart of accounts, automated accruals and journals, and integrated controls and reconciliations. It is comparable in scope to institutional platforms such as Advent Geneva, and we do not pass a per-seat licence cost to clients. Funds that need to stay on their own systems can be administered there instead. See technology.
Strategies we administer
| Strategy | What the administration emphasizes |
|---|---|
| Hedge funds | Daily P&L, multi-prime reconciliation, series accounting, equalization and performance fees |
| Private equity | Capital calls, waterfalls, carried interest, fair value support and IRR/TVPI/DPI reporting |
| Venture capital | Commitments, SAFEs and convertibles, round-by-round valuations and LP reporting |
| Private credit | Loan-level accruals, PIK interest, fee amortization and borrower cash reconciliation |
| Real estate | Property-level consolidation, SPV accounting and distribution waterfalls |
| Fund of funds | Underlying fund NAV capture, estimates versus finals and look-through reporting |
| Digital assets | Exchange and wallet reconciliation, 24/7 pricing cut-offs and staking income |
How to choose a fund administrator: criteria checklist
Use these questions in your request for proposal and reference calls.
- Experience with your strategy, asset classes and fund structure
- Named team: who calculates your NAV, and how long they stay on the account
- NAV delivery timeline after period end, and how it is measured
- Platform: proprietary or licensed, and what licence costs are passed through
- Handling of series accounting, equalization, side pockets or waterfalls as your documents require
- Pricing sources, valuation policy support and escalation for hard-to-value assets
- Reconciliation scope: cash, positions and transactions against every counterparty
- Controls evidence: ISO 27001, segregation of duties, maker-checker and audit trail
- AML/KYC capability in your fund’s jurisdiction and investor base
- Regulatory filing support: FATCA, CRS, CIMA, Form PF data or K-1 data as relevant
- Investor portal, reporting formats and API or SFTP data delivery
- Transition approach, parallel run and references from funds that switched
- Fee model and what triggers additional charges
- Business continuity plan and coverage across time zones
What to expect when onboarding a fund administrator
Scoping and proposal
We review offering documents, strategy, counterparties and reporting needs, then confirm scope, cadence and fees.
Document and term review
Fee, liquidity, valuation and allocation terms are mapped into calculation rules. Ambiguities are raised with the manager and counsel before go-live.
Platform configuration
The fund, share classes, chart of accounts, fee schedules and pricing sources are set up in Tychi or on your systems.
Counterparty connectivity
Data feeds or files from prime brokers, custodians, banks and the OMS are connected and tested, with authorization letters in place.
Investor onboarding
Existing investors are migrated or new investors onboarded through KYC, with the register and capital accounts reconciled to opening balances.
First NAV and review
The first NAV cycle runs with extra review. Workings are walked through with the manager and adjustments agreed before the period is locked.
What drives fund administration fees
Assets and complexity
Fees are commonly quoted in basis points on assets with a minimum. Complex instruments and many counterparties add effort.
NAV frequency
Daily NAVs cost more to run than monthly or quarterly NAVs.
Investor count and activity
Onboarding, dealing and reporting scale with investor numbers and turnover.
Structure
Master-feeders, SPCs, series and side pockets add ledgers and allocations.
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Hire a Fund Administrator
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Ask a specialistFrequently asked questions
How much does a fund administrator cost?
Fund administration is commonly priced as basis points on assets under administration, subject to an annual minimum, with add-ons for services such as AML/KYC, regulatory filings or tax data. The main drivers are NAV frequency, strategy complexity, number of counterparties and investors, and structure. Fundtec quotes after reviewing your offering documents and does not pass per-seat platform licence costs to clients.
What is the difference between a fund administrator and a fund accountant?
Fund accounting is one part of fund administration. The fund accountant books transactions, values the portfolio and calculates the NAV. A fund administrator also maintains investor records, processes subscriptions and redemptions, runs AML/KYC, prepares financial statements, supports the audit and produces regulatory and investor reporting. Fundtec delivers all of these as one engagement.
Do emerging managers need an independent fund administrator?
Yes. Institutional investors, auditors and many regulators expect an independent administrator, and allocators treat self-administration as a due diligence red flag. An independent administrator also gives a small team documented controls, a clean investor register and audit-ready books from launch. Fundtec’s pricing and onboarding are designed to work for first funds as well as established managers.
How long does it take to onboard a new fund administrator?
A new fund with standard terms can typically be onboarded in a few weeks, driven mainly by counterparty connectivity and investor onboarding. An existing fund moving from another administrator takes longer because historical data, capital accounts and a parallel run are involved. Fundtec runs a structured transition with the core cut-over around 90 days from kick-off.
Which fund structures and strategies does Fundtec administer?
Fundtec administers open-ended and closed-ended funds, LP/GP structures, segregated portfolio companies, multi-share class funds, master-feeders, funds of funds and standalone vehicles. Strategies include hedge funds, private equity, venture capital, private credit, real estate and digital assets, across equity, fixed income, derivatives, FX and private assets.
Does Fundtec file regulatory returns such as FATCA, CRS and Form PF?
Fundtec prepares the data and reports for FATCA and CRS/AEOI and supports CIMA annual returns, Form PF and AIFMD Annex IV with fund-level data. The fund, its directors or its compliance adviser remain responsible for submission and sign-off where the rules require it. Scope is agreed per fund in the service agreement.
Can Fundtec administer a fund on our own systems instead of Tychi?
Yes. Most funds are administered on Tychi, Fundtec’s proprietary accounting and operations platform, but Fundtec can also operate on a client’s own accounting and portfolio systems. In that model, data stays in the client’s environment and Fundtec staff work through client-controlled access with a full audit trail.
How does Fundtec protect investor and fund data?
Fundtec is ISO 27001 certified for information security and ISO 9001 certified for quality management. Access is role-based, work follows segregation of duties and maker-checker review, and every change is logged. Investor data is exchanged through a secure portal, SFTP or API rather than open email attachments, and business continuity is documented and tested.
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Read more →Request a fund administration proposal
Send us your offering documents and current setup. We will confirm scope, cadence and fees, and show you what your NAV pack will look like.