The future of real estate fund administration  is being reshaped by technology — transforming how property funds are managed, valued, and reported. As investors demand transparency and faster insights, digital innovation is redefining efficiency, compliance, and accuracy across the real estate investment ecosystem. Future Real Estate Fund Administration PwC’s 2024 Asset & Wealth Management  report found that 80% of asset and wealth managers believe AI  will drive revenue growth — a sign that fund managers are increasingly investing in digital tools and automation to modernize fund operations and investor reporting. Technologies such as AI-driven NAV calculations, blockchain recordkeeping and cloud accounting  are ushering in a more data-driven era of fund administration. In this evolving environment, real estate fund administration services  have become a strategic necessity rather than a back-office function. Automated reporting, regulatory compliance tracking, and real-time asset valuation are now essential for fund managers seeking to attract and retain institutional investors. This is where Fundtec  stands out. As a global provider of real estate fund administration services , Fundtec empowers fund managers to streamline accounting, ensure compliance, and enhance investor confidence — all through a technology-first approach. Their services include NAV calculation , performance reporting , audit support , and end-to-end compliance support , specifically designed for real estate and alternative investment funds. By integrating technology and expertise, Fundtec helps managers focus on growth while it handles the complexity behind the scenes.If you’re seeking a reliable, tech-powered fund administration partner for your real estate investments, Fundtec  is your trusted choice. Contact Us

In today’s fast-paced investment landscape, launching a new fund can feel overwhelming especially for emerging fund managers navigating tight budgets, compliance challenges, and investor expectations. That’s where BVI Incubator Fund Services  come in. Designed specifically for start-ups and first-time managers, the Incubator Fund structure in the British Virgin Islands (BVI) offers a cost-effective, flexible, and reputable pathway to establish a presence in the global fund management industry. Why the BVI? The British Virgin Islands has long been a leading jurisdiction for investment funds. With a strong regulatory framework, tax neutrality, and global recognition, the BVI is trusted by institutional investors and fund managers worldwide. But unlike traditional funds that may require higher capital thresholds and extensive compliance from day one, the BVI Incubator Fund  is designed to support managers in their early growth stage —giving them the room to test strategies, build a track record, and attract investors with lower upfront costs. Key Features of BVI Incubator Fund Services: Low Setup and Maintenance Costs For emerging managers, cost is a major concern. The BVI Incubator Fund offers one of the most affordable fund structures globally, allowing managers to allocate more resources toward strategy and investor relations instead of administrative overhead. Fast and Simple Launch With streamlined application procedures, funds can typically be set up in just a few weeks. This speed gives managers the ability to act quickly on market opportunities without being delayed by lengthy regulatory approvals. Flexible Operating Rules The structure allows up to 20 investors and a cap of US $20 million in assets under management (AUM) during the incubation period (typically up to 2 years). This provides sufficient scope to build credibility while maintaining compliance. If the fund exceeds the US $20 million limit, there is an option to convert it into an approved fund with a cap of US $100 million and up to 20 investors. Pathway to Growth Once managers prove their strategy, they can easily transition from an Incubator Fund into a more sophisticated Approved, Professional, or Private Fund  within the BVI framework—making scaling seamless. Why Emerging Managers Choose BVI Incubator Fund Services Global Credibility:  Investors trust the BVI due to its well-established legal and financial system. Regulatory Support:  Unlike unregulated jurisdictions, the BVI provides enough oversight to inspire investor confidence, without overburdening managers. Investor Attraction:  For early-stage funds, being domiciled in the BVI can act as a stamp of legitimacy—helping attract initial backers. Flexibility:  Whether you’re focused on hedge funds, crypto assets, or alternative investments, BVI structures can adapt to your needs. How Fundtec Can Help At Fundtec , we specialize in providing end-to-end BVI Incubator Fund Services  for emerging fund managers. From fund formation and licensing support to compliance, accounting, and investor reporting, we ensure you can focus on what matters most— delivering returns and building investor trust . Our team understands the unique challenges faced by first-time managers. We simplify the process, reduce the burden of ongoing administration, and provide scalable solutions that grow as your fund grows. Final Thoughts Launching a new fund doesn’t have to be daunting. With BVI Incubator Fund Services , emerging fund managers gain access to an affordable, flexible, and globally recognized platform to build a solid foundation for future success. If you’re ready to take the first step in your fund management journey, reach out to Fundtec today . Let us guide you through the process and help you transform your investment vision into reality. CONTACT US

In today’s highly competitive investment landscape, private equity firms face increasing pressure to deliver strong returns while managing complex fund structures , demanding investors, and strict regulatory requirements . This is where the importance of Private Equity Fund Administration Services  comes into sharp focus. By streamlining operations and reducing administrative burdens, firms can dedicate more time to creating value and less time managing back-office challenges. Tailored Administration for Private Equity Firms At Fundtec , we specialize in delivering customized fund administration   solutions designed to meet the distinct needs of private equity managers . Our approach is centered on efficiency, accuracy, and transparency , helping firms navigate the complexities of fund operations with confidence. Our comprehensive Private Equity Fund Administration Services include: Regulatory and compliance tracking Performance measurement Operations and transaction support We also assist with highly specialized processes such as: Capital calls & distribution notices : Ensuring accurate and timely communication with investors throughout the fund lifecycle. Waterfall calculations : Managing profit distribution structures precisely to align with limited partner and general partner agreements. PCAP statement generation: Providing detailed partner capital account statements to ensure compliance, clarity, and investor trust. Technology-Driven Operational Excellence One of the standout advantages of working with Fundtec is our ability to leverage technology to streamline and automate  traditionally manual processes. This enables us to ensure data integrity , reduce turnaround times, and eliminate human error across mission-critical tasks. Automation plays a key role in: Executing capital calls and managing distributions Calculating waterfall structures based on fund-specific tiers Generating PCAP statements in compliance with accounting standards This operational automation translates to significant time savings, reduced costs, and enhanced investor confidence. Navigating Regulatory Compliance with Confidence In a world of ever-evolving regulatory frameworks, private equity firms need a partner who can not only ensure compliance but also provide proactive insights and guidance. Fundtec monitors global regulatory developments closely, helping clients adapt their operations without disruption. We offer: Regular compliance reviews Updates on regulatory changes Integrated solutions that ensure your fund operations stay within bounds while maintaining transparent investor communications A Strategic Partner for Long-Term Growth When you choose Fundtec for your Private Equity Fund Administration Services, you're not just selecting an operational provider—you’re gaining a strategic partner. Our experienced professionals work alongside your team to provide scalable solutions that align with your fund’s structure, strategy, and growth goals. Whether you're launching a new fund, scaling operations, or entering new markets, Fundtec ensures your administrative foundation is built for the journey ahead. Ready to Transform Your Fund Operations? Discover how Fundtec’s advanced Private Equity Fund Administration Services—including capital calls & distribution notices, waterfall calculations, and Pcapitals statements—can help your firm achieve operational excellence and strategic growth. 🔗 Visit our Private Equity Fund Administration Services page to learn more.

As investment firms continue to face increasing complexity in managing large portfolios and meeting regulatory demands, the need for efficient middle-office operations has never been more crucial. With the rise of AI and automation, firms now have the opportunity to streamline fund operations, reduce costs, and enhance scalability. According to a 2025 Deloitte study, 78% of private equity investors  plan to increase their AI investment in the coming fiscal year, underscoring the growing reliance on technology for operational efficiency. By leveraging automation, firms can eliminate repetitive manual tasks—such as data reconciliation , investor reporting, and compliance tracking—that traditionally consume valuable time and resources. McKinsey  reports that firms adopting AI for certain middle-office functions can achieve efficiency gains of up to 70% in workflows such as investment guideline creation and operational oversight. This allows fund managers to focus on higher-value strategic decisions rather than routine administrative work. At Fundtec, we are at the forefront of this transformation. Our advanced automation platform enables investment firms to optimize middle-office functions like trade processing, portfolio management, and reporting. By integrating AI algorithms, we provide real-time analytics that help managers make faster, data-driven decisions while reducing operational risks. As firms grow, scalability becomes critical. Fundtec’s next-generation platform is designed to evolve with your operations, allowing you to manage more assets with fewer resources. By minimizing manual intervention, we empower your team to focus on strategic priorities that drive profitability. For more information on how Fundtec can help streamline your fund operations, visit Global Fund Operations Services .

In today’s fast-paced investment landscape, fund managers face growing pressure to deliver accuracy, transparency, and compliance while also ensuring investors receive timely reports. Whether it’s a hedge fund , private equity (PE) fund , real estate investment fund , or crypto fund , robust fund administration services  play a critical role in ensuring smooth operations. Why Fund Administration Matters According to a 2024 Preqin survey, 78% of fund managers outsource their administration functions  to improve efficiency and investor trust. From NAV calculation  and investor relations  to compliance reporting , outsourcing ensures managers can focus on strategy while specialists handle the complex middle and back-office tasks. For hedge funds, where strategies are fast-moving, timely and accurate reporting is essential. Private equity funds demand deep expertise in capital calls and distributions, while real estate funds require precise tracking of property-level data. On the other hand, the rise of digital assets  has created demand for administrators who can handle complex crypto fund reporting  and compliance frameworks. The Human Side of Fund Administration At its core, fund administration is not just about numbers—it’s about trust and transparency . Investors today expect more than spreadsheets; they seek clear, timely, and accessible insights into their investments. This is where a reliable partner makes all the difference. The Future of Fund Administration As investment strategies diversify and regulatory requirements tighten, the role of outsourced fund administration  will continue to expand. With the alternative investment industry projected to reach $24 trillion by 2027 (Preqin) , choosing the right partner is no longer optional—it’s essential. For fund managers seeking accuracy, transparency, and reliable global support, Fundtec is not just a service provider—it’s a trusted partner for long-term success. Why Fundtec Stands Out When it comes to choosing the right partner, Fundtec is recognized as one of the best service providers in global fund administration . With a proven track record across hedge funds, private equity, venture capital, real estate, family offices, and crypto funds, Fundtec ensures accuracy, compliance, and peace of mind. What sets Fundtec apart is its 24/5 global support model , ensuring fund managers and investors always have a trusted partner available across time zones. The company combines advanced technology with a client-centric approach, making fund administration both efficient and humanized. -- Explore Fundtec’s full range of solutions here: Fund Administration Services --

If you work anywhere near a fund’s back office, you’ve felt it: the U.S. regulatory environment is moving faster than ever. Valuation oversight, liquidity, derivatives exposure, marketing, cybersecurity, reporting cadence each year adds new layers. For fund accountants, this isn’t just “more paperwork.” It changes daily workflows, the controls you design, the systems you rely on, and how confidently investors can trust what’s in their statements. Why it matters:  the U.S. remains the world’s largest fund market, with tens of trillions of dollars in registered investment company assets  and millions of American households  invested through mutual funds, ETFs, private funds, and retirement plans. When the SEC updates a rule, the ripple hits every NAV, every reconciliation, and every investor report. Below is a practical, human-centered look at the most impactful U.S. regulatory shifts and what they mean for fund accounting. 1) Fair Valuation: SEC Rule 2a-5 turned “best practice” into obligation What changed:  SEC Rule 2a-5 modernized how funds determine “fair value in good faith.” It requires boards (or their designees) to establish robust valuation frameworks, test them, and oversee service providers. What it means for accounting: Documented methodologies  per asset class (and sub-class), including hard-to-price Level 2/3 securities and private investments. Calibration & back-testing  to show your models are not only reasonable, but remain reasonable as markets move. Price challenges  and overrides with clear audit trails. Board reporting  that is data-rich, exception-based, and frequent. Stat to know:  Independent surveys of allocators show accuracy and timeliness of NAV  consistently rank as a top criterion  when selecting administrators—proof that valuation controls are now a commercial advantage, not just a compliance checkbox. 2) Derivatives Risk Program: Rule 18f-4 made exposure visible (and model-driven) What changed:  Funds using derivatives must operate under a formal Derivatives Risk Management Program , designate a risk manager, apply Value-at-Risk (VaR)  limits, and enhance board reporting. Accounting impact: Daily exposure capture  across swaps, futures, forwards, and options. Collateral & margin  movements booked with precision to avoid NAV swings. VaR inputs & back-testing  integrated into the accounting data warehouse. Footnotes & shareholder reports  that reconcile derivatives’ economic impact with GAAP/IFRS presentation. 3) Liquidity Risk Management: Rule 22e-4 reshaped classifications and trading cutoffs What changed:  Funds must bucket assets by liquidity, monitor limits on “illiquid investments,” and test liquidity under stress. Accounting impact: Real-time classification  feeds from pricing/OMS into the accounting system. Shareholder-level controls  (e.g., swing pricing policies where applicable) that require enhanced NAV cutoffs  and order processing  logic. Board-ready metrics  that tie liquidity buckets to cash forecasting and financing lines. 4) Private Fund Advisers: more reporting, more transparency What changed:  Amendments to Form PF  and the SEC’s broader private fund agenda tighten reporting timelines and stress disclosures. Large hedge fund advisers face event-driven reports  within hours/days  after major market or operational events. Accounting impact: Near real-time P&L and exposure  to support “T-0/T+1” style internal reporting. Workflow automation  so unusual events (gates, margin spikes, cyber incidents) push straight to compliance dashboards. Data lineage —being able to show exactly where a number came from, who touched it, and when. 5) The Marketing Rule: performance calculations under a microscope What changed:  The Investment Adviser Marketing Rule  modernized how performance and endorsements are presented. Substantiation, net-of-fee standards, and books-and-records requirements are explicit. Accounting impact: Single source of truth  for performance composites, fees, and benchmarks. Reproducible performance packs —the numbers in your pitchbook must exactly match the ledger and performance engine. Ongoing surveillance  of third-party content and testimonials to ensure disclosures are present and up-to-date. 6) Cybersecurity & Safeguarding: accounting is now part of resilience What changed:  The SEC has advanced rules around cybersecurity risk management and incident disclosure  for market participants, and proposed enhanced safeguarding of client assets  (broadening the custody rule). Accounting impact: Access controls and segregation of duties  across general ledger, pricing, and investor records. Immutable logs  and forensic-ready audit trails  to demonstrate data integrity after an incident. Vendor risk management —SOC 1/2 reports that actually get read, mapped to your controls, and tested. 7) T+1 Settlement (2024): faster markets, tighter books What changed:  The U.S. moved to T+1  equity settlement in 2024. Funds have less time to resolve breaks and confirm positions. Accounting impact: Intraday trade capture  and accelerated reconciliations  with brokers and custodians. Corporate actions & FX  aligned to faster windows so NAVs reflect reality, not estimates. Exception management —what used to be a “nice to fix” is now “must fix before NAV.” Quick datapoint:  Large administrators report double-digit reductions in settlement fails  when firms automate post-trade reconciliations and confirmations—evidence that technology pays for itself under T+1. 8) ESG & disclosure evolution: data quality is kin g Even before final rule harmonization, investors are asking for ESG-adjacent metrics  and clearer disclosure. For accounting, that means: Data provenance  for KPIs that blend financial and non-financial sources. Consistent tagging  in shareholder reports and websites to avoid greenwashing risk. Scenario-ready reporting —the ability to re-cut data as frameworks evolve. 9) Digital assets, tokenized funds, and on-chain accounting As tokenization and crypto strategies mature, U.S. oversight is intensifying around custody, valuation, and disclosures . For the back office: Wallet-level reconciliation  to custodians and chain explorers. Independent price sourcing  for thinly traded tokens; model documentation rivals private equity. NAV timing  that respects on-chain settlement finality and potential forks. Tax lots & wash sale  nuances for digital assets—tracked with the same rigor as equities. Stat to watch:  Industry trackers show institutional participation in digital assets continues to grow , with allocators demanding audit-ready NAVs  and daily transparency  comparable to traditional funds. What high-performing fund accounting looks like now Across these rules, winning teams share five traits: 1. Data unity:  one golden source for trades, prices, FX, fees, and investor records—API-connected, not spreadsheet-patched. 2. Evidence-first controls:  every price challenge, override, and accrual has a timestamp, an owner, and a reason. 3. Speed with safety:  daily (even intraday) reconciliations, but with maker-checker reviews and alerts that surface what matters. 4. Explainable performance:  from gross to net, from security-level to sleeve-level—numbers reconcile front-to-back. 5. Board-caliber reporting:  concise, visual, exception-based. Oversight that feels  like oversight. Where Fundtec fits in If your team is feeling the squeeze—more regulation, same headcount—outsourcing part or all of fund accounting to a specialist can be the difference between “compliant” and confident . Fundtec  delivers end-to-end Fund Accounting Services  tailored to U.S. rules and investor expectations: Accurate, audit-ready NAVs  across mutual funds, hedge funds, private equity, and digital asset strategies Valuation governance  that aligns with Rule 2a-5  (methodologies, calibration, back-testing, board reporting) Derivatives & liquidity workflows  built for 18f-4  and 22e-4  (VaR, collateral, liquidity buckets) T+1-ready ops:  accelerated trade capture, real-time reconciliations, same-day break resolution Marketing-rule support:  performance packs that tie directly to the ledger—fully reproducible Cyber & vendor controls:  SOC-aligned processes, granular access, and immutable logs Digital assets expertise:  wallet reconciliation, chain-level evidence, and independent pricing A track record that speaks for itself:  Fundtec supports managers handling billions in collective AUM , with high on-time NAV rates , low break ratios , and clean audit outcomes  year after year. Clients tell us the biggest change isn’t just fewer errors—it’s more time back  for the front office and compliance to focus on investors. The bottom line is Regulation isn’t slowing down. And that’s okay—because the same rigor regulators expect is exactly what investors value. For fund accountants, the winning playbook blends strong governance , modern tech , and experienced partners  who’ve solved these problems before. If you’re ready to turn regulatory momentum into operational excellence, Fundtec  is here to help. Explore our solutions and see how quickly we can shore up your NAVs, speed up your closes, and simplify board-level oversight  Fund Accounting Services — Fundtec

In recent years, cryptocurrency has evolved from a niche market to a major financial sector, prompting the need for specialized Cryptocurrency Fund Administration services. These services help manage the financial, legal, and operational aspects of cryptocurrency funds, ensuring that investments in digital assets like Bitcoin, Ethereum, and other altcoins are tracked, compliant, and optimized for performance. The rise of digital assets has brought an increased demand for professional fund administration , with the global cryptocurrency market valued at over $1.4 trillion in 2023 . As the market expands, more funds are emerging to capitalize on the potential of blockchain technology and decentralized finance (DeFi). In fact, some of the reports show that over 60% of institutional investors are now either directly or indirectly involved in cryptocurrency investments, underlining the growing importance of secure and transparent management of these assets. One of the most exciting developments in this space is the emergence of Tokenized Funds  and On-chain Funds . Tokenized Funds  represent traditional investment funds in the form of blockchain-based tokens, enabling fractional ownership, increased liquidity, and easier global access for investors. On-chain Funds , on the other hand, are fully managed and operated directly on the blockchain, where all transactions, performance records, and governance activities are transparently recorded in smart contracts. Both models bring enhanced efficiency, faster settlement times, and greater transparency compared to traditional fund structures. However, they also require advanced fund administration capabilities to ensure regulatory compliance, accurate NAV (Net Asset Value) calculations, and secure investor reporting in a real-time blockchain environment. Cryptocurrency fund administration services include tasks such as NAV calculation, compliance with regulatory frameworks, tax reporting, and investor communications. These services help ensure that cryptocurrency funds — whether traditional, tokenized, or on-chain — are managed in line with investor expectations while complying with global financial regulations. Moreover, with the volatile nature of cryptocurrency prices, efficient risk management is critical. Fund administrators provide performance analysis, helping fund managers make informed decisions to minimize risk and optimize returns. This requires deep expertise in both blockchain technology and traditional finance, making it crucial for fund managers to partner with experienced administrators. Fundtec stands out as a reliable partner for digital assets fund administration. Their comprehensive services include everything from transaction tracking to compliance with financial regulations. With expertise in both traditional and digital asset fund management, Fundtec ensures seamless operations for fund managers navigating the evolving world of blockchain-based investments.   For more information, visit Cryptocurrency Fund Administration

Yale Strategist Reveals The Truth About Hedge Fund Failures By now you’ve begun to notice a pattern in the news about hedge funds : Nobody is making money anymore, so managers are returning millions to disappointed investors. The latest to close is Eton Park Capital. But the decision by that fund’s managers is hot on the heels of epic losses by previously high-flying funds. A few of the notables include Pershing Square Capital (run by activist investor Bill Ackman) and startling declines reported by John Paulson, the manager who famously bet against the housing market before it collapsed. There has been a lot of interesting analysis as to why this is happening. As my MarketWatch colleague Howard Gold concludes in a recent column, mostly it’s a problem of supply and demand. Essentially, the ability to consistently beat the stock market is a vanishingly rare talent. Investors who were early in the hedge fund game saw some distinct advantages, which only drew in more investors.The resulting flood of money, some $3 trillion in total, created demand for which there is no natural supply — managers who deliver repeatable, above-the-market returns after fees. In a real sense, it’s not different from the dot-com boom, the housing boom, the gold boom and so on. People just pile into the lifeboat until it sinks. In addition, any kind of secret sauce developed by a given manager will be figured out and replicated, erasing the advantage. It’s inevitable. For a number of years the big endowments at Yale and Harvard enjoyed a wide-open playing field. Their managers prospered, returned double-digit gains year after year. Yet in fiscal 2016 Yale delivered 3.4%, a modest return that nevertheless trounced the rest of the Ivy League managers. Yale’s respected chief investment officer, David Swensen, offers this advice to retirement investors: Use low-cost index funds, diversify globally and rebalance. That’s enough to get the job done. So why hedge funds? The fundamental lesson taught in business schools is “don’t be in the middle.” If you are going to try to sell a product to a high-end clientele, build that product and charge accordingly. Think perfumes, exotic cars and designer fashion. The rest belongs to discounters, businesses that market around price and try to create enough quality to keep up. That’s Amazon and Walmart.account risk, hedge funds ultimately don’t work much differently than ordinary mutual funds but certainly they thrived, for a while at least, on the mere perception of difference. Perception matters. One study found that the name of the fund affects investment inflows, irrespective of performance. The hedge fund industry is the ultimate high-end offer, a very costly and very exclusive product. Taking into Call yourself “Master Alpha” or “Capital Dynamic” and the money pours over the transom. Go with “Splitrock Moderate” and fewer want in. Predictable returns Now the hedge-fund lifeboat is flooded and investors are clamoring to get out. Who know what they’ll pour money into next? Most likely something else that seems exclusive, costly and secretive — and promises to somehow bend the laws of finance in their favor. In short, another lifeboat. Swensen has it right. Retirement investors are best served by diversification, indexing and rebalancing, along with steady contributions. Compounding, the way money grows through reinvestment, is the real secret sauce. Furthermore, investors are often much better served by ignoring return data, which is actually fairly predictable over long periods, and instead focusing on risk. If you can keep your investment risk in line with your goals, that is, if you can keep from jumping into the next high-risk lifeboat, you can retire with more. Courtesy- Rebalance

Innovative approaches, proven results. Meaning Litigation funding, also known as legal financing and third-party litigation funding (TPLF), is the mechanism or process through which litigants (and even law firms) can finance their litigation or other legal costs through a third party funding company. It is a form of non-recourse financing for legal disputes. In exchange for a pre-agreed share of any proceeds arising from the litigation, the funder agrees to pay some or all of the claimant's legal costs and disbursements. Disputes that attract TPF generally include commercial contracts, international commercial arbitration, class action suits, tortious claims like medical malpractice and personal injury claims, anti-trust proceedings, insolvency proceedings, and other like claims that have a calculated chance of resulting in a substantial monetary award. How it Works A third party funder is an independent party that pays some or all of the legal costs and expenses of one of the parties to dispute proceedings. Experts such as claim assessors, technical experts, forensic investigators and local law firms help the funder determine the chances of success in a dispute, understand the risk that needs to be priced, and ascertain the costs which would be incurred in the resolution of the dispute. In return, the funder will be paid out of the proceeds if the claim succeeds, often as a percentage of the amount recovered or a multiple of the amount it invested. If the claim fails, the funder will not be entitled to payment. There are also insurance policies that can be combined with funding to cover this potential costs risk. The result is that the burden of the upfront cost is removed from the client, with the funder covering those and taking its reward from the dispute at a later stage. Latest Industry Updates Global Litigation Funding Investment Market Share to Surpass USD 22,373 Million By 2027 According to the research study, the global Litigation Funding Investment Market was estimated at USD 10,916 Million in 2018 and is expected to reach USD 22,373 Million by 2027. The global Litigation Funding Investment Market is expected to grow at a compound annual growth rate (CAGR) of 8.3% from 2019 to 2027. ( Source ) Two more legal cases resolved successfully by Europe’s first litigation funding platform Axia Funder . Axia Funder, Europe’s first for-profit litigation funding platform, has secured GBP 1.9million from investors since launching in January 2019, with a 100 per cent success rate on completed cases. Axia Funder has fully funded a total of 13 cases via its platform so far, winning all five that have been concluded with an average investor return of 55 per cent, and as high as 94 per cent. The other eight cases remain ongoing; The current cases at the funding stage include a shareholder dispute case relating to a high-value house building business, and a group litigation claim against two retail banks the funding is in the process of closing. (Source) Artificial Intelligence Driving Investment Decisions in Litigation Funding Artificial Intelligence in Litigation Funding Market” 2021 industry research report provides information regarding market size, share, trends, growth, cost structure, capacity, and revenue and forecast 2026. This report also includes the overall and comprehensive study of the Artificial Intelligence in Litigation Funding with all its aspects influencing the growth of the market. It provides data for making strategies to increase the market growth and effectiveness. (Source) Key Takeaways Litigation funding is the practice of a third party funding litigation in exchange for a cut of any proceeds that result from the lawsuit. Typically, the funding will cover the funded parties legal fees and expenses incurred in the arbitration. Financing companies typically provides non recourse funding to a litigant. Litigation funding is essentially a high-return investment. Experts help the funder determine the chances of success in a dispute, understand the risk that needs to be priced, and ascertain the costs which would be incurred in the resolution of the dispute.

A global buzz around going public. What Is a Special Purpose Acquisition Company (SPAC)? A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Sometimes a SPAC is called a “blank-check company” because it doesn’t have any actual operations. Instead, the company is created for the purpose of taking a private company public. How it Works: A SPAC is created as a shell company that looks for a business opportunity to acquire or merge with an existing private company.  Initially SPAC sponsors are allowed to put money into the blank-check company and receive favorable terms for their shares or other consideration. SPACs seek underwriters and institutional investors before offering shares to the public. Once it lists on the Nasdaq or New York Stock Exchange, investors can buy into the new company, just like any other IPO. Proceeds from the IPO are kept in Interest bearing trust account. Eventually, the SPAC identifies a private business that looks to be a good acquisition target. If approved, the business is acquired and continues operations. The SPAC shares continue to be available on the market but now they are publicly associated with a business.  If a SPAC investor doesn’t want to be a shareholder in the new, combined company, they can redeem their shares. Usually a SPAC has up to two years to find a suitable arrangement for a business acquisition. If the time frame isn’t met, the trust account is liquidated and beneficiaries can receive their portion of the funds back. More about SPAC: Prospectus and reports Whether you are investing in a SPAC by participating in its IPO or by purchasing its securities on the open market following an IPO, you should carefully read the SPAC’s IPO prospectus as well as its periodic and current reports filed with the SEC pursuant to its ongoing reporting obligations. It is important to understand the terms of your investment.   Trust account SPACs generally invest the proceeds in relatively safe, interest-bearing instruments, but you should carefully review the specific terms of an offering as there is no rule requiring that the proceeds only be invested in those types of instruments. Trading price In the IPO, SPACs are typically priced at a nominal $10 per unit. Unlike a traditional IPO of an operating company, the SPAC IPO price is not based on a valuation of an existing business. When the units, common stock and warrants (more below) begin trading, their market prices may fluctuate, and these fluctuations may bear little relationship to the ultimate economic success of the SPAC. Period to consummate the initial business combination A SPAC will typically provide for a two-year period to identify and complete an initial business combination transaction. However, some SPACs have opted for shorter periods, such as 18 months. The SPAC’s governing instruments may permit it to extend that time period. If a SPAC seeks to extend the time period, it may be required to seek shareholder approval. If a SPAC lists its securities on an exchange, it is required to complete an initial business combination within three years of its IPO.   Latest Industry Updates: Kredivo id is set to go public via $2.5 bln Spac Merger The owner of Indonesian buy now, pay later platform Kredivo is set to go public in a $2.5 billion merger with a special purpose acquisition company sponsored by Victory Park Capital. (Source)   Egyptian ride-sharing company Swvl plans to go public in a $1.5B SPAC merger Cairo and Dubai-based ride-sharing company Swvl plans to go public in a merger with special purpose acquisition company Queen’s Gambit Growth Capital,. The deal will be valued at roughly $1.5 billion. Its services, mainly bus-hailing, enables users to make intra-state journeys by booking seats on buses running a fixed route. Swvl offerings have expanded beyond bus-hailing services. Now, the company offers inter-city rides, car ride-sharing, and corporate services across the 10 cities it operates in across Africa and the Middle East. (Source)   Vacasa, a vacation rental co. with Boise roots, aims to go public in $4.5 billion deal The deal, which would come via a merger with a special purpose acquisition company called TPG Pace Solutions, would value Vacasa at about $4.5 billion. (Source)   Key Takeaways: 1. A special purpose acquisition company is formed to raise money through an initial public offering to buy another company. 2. At the time of their IPOs, SPACs have no existing business operations or even stated targets for acquisition. 3. Investors in SPACs can range from well-known private equity funds to the general public. 4.SPACs have two years to complete an acquisition or they must return their funds to investors.

Building a solid legal and tax foundation is essential for your hedge fund . The fund’s documentation and tax structure are some of the main building blocks in its creation. Documentation: More than Boilerplate Setting up a hedge fund entails more than 100 legal documents. One of the most important is the offering memorandum or private placement memorandum (PPM), which is central to the success of the fund. It spells out the fund’s strategy, the risks and constraints of the strategy, the team members and their histories, the fund’s governance and its legal underpinnings. It outlines the guts of the fund: how it will function as a legal entity; how to subscribe to the private placement; redemptions; and risk warnings. It’s tempting to think of it as boilerplate, but investors spend a great deal of time going through the offering memorandum because it lays bare the framework, discusses the rights of investors and addresses such matters as founder shares. And, when the PPM gets reviewed, if the risk warnings are out of sync with the alpha proposition or the redemption mechanics don’t square with the liquidity, then it’s unlikely to pass muster with investment consultants and advisers. Balancing the rights of the investors against the tools needed by the manager to steer the fund requires experienced counsel. So, when choosing a lawyer to draft the PPM, make sure to hire someone with experience. Tax Structure In thinking about your tax structure, you need to take a two-pronged approach: What works best for the manager side and what works for the fund side? Fund side: The tax structure must start with the investors. Accordingly, knowing your investors is critical: Are they U.S. or non-U.S. investors? Are they U.S. taxable or tax-exempt investors? Is the fund structured as an efficient vehicle from the investors’ perspective? The three categories of investors all have competing needs. The non-U.S. investor wants to avoid paying tax on a current basis, while the U.S. taxable investor has to pay income tax on a current-year basis. Finally, the U.S. tax-exempts wish to accumulate gains and pay tax only upon redemption of the shares. A master fund fed by an offshore corporate fund for non-U.S. and U.S. tax-exempts and an onshore partnership for the U.S. taxable investors is able to satisfy the competing tax needs—with the partnership set up in Delaware and offshore fund domiciled in the Cayman Islands. Manager side : The limited liability partnership and the partnership agreement are the cornerstones of any manager’s legal infrastructure. The LLP serves to future-proof the fund against changes in the regulatory or tax landscape and retain fees for marketing shares in the fund. The partnership structure also allows for a lower tax rate. If the LLP can be thought of as a kind of marriage license, the partnership agreement serves as the “pre-nup,” spelling out the terms of the dissolution of the partnership, covering everything from a falling out between partners to retirement to death. Arguably, from the manager’s perspective, it’s the most important document—and it’s important to have the discussion at the beginning. Courtesy- Bloomberg

Strategic outsourcing of functions such as administration and technology is an issue that fund managers face throughout a lifecycle, beginning with earliest seeds to full maturity. Cost is a factor when deciding on a service provider, but think long term when outsourcing. Investors will scrutinize your choice of service providers as closely as they will your strategy. Without an institutional-grade administrator and technology provider, you’ll never be able to attract the level of institutional investors you need and you’ll also have a hard time growing beyond family and friends’ money. Administration : The success of a fund depends on engineering the proper split of responsibilities for running the firm: investment management activities, day-to-day operations and outsourced administration operations. The fund administrator is usually responsible for: remarking the portfolio; maintaining quality control over valuation; calculating NAV; providing third-party valuations; calculating the fund’s income and expense accruals; preparing reports to shareholders; and maintaining and filing the fund’s financial books and records, including reconciliation of holdings with custody and broker records. But some administrators may offer other services, including: trade order management, confirmation and settlement; collateral administration (the day-to-day oversight of collateral, calls, payments and challenges); and risk measurement. Choosing the right administrative provider is crucial to the success of your fund. But assessing an administrator is never simple. Some of the questions to ask a potential administrator include: Expertise : Do you have an understanding and familiarity with the fund’s strategy? NAV : How frequently can you provide NAV calculations? Can you offer daily or weekly estimates if necessary? Reconciliations : How often do you do reconciliations? Scalability : Do you have the capacity to scale upwards as the fund grows and its strategy evolves? Infrastructure : How robust is your technology platform? Technology Regardless of strategy and size, all firms seek the same core IT requirements: a robust, scalable, fully tolerant system—essential for their business-as-usual operations. Outside the core requirement are variations that differ between funds based on strategy, order management systems, portfolio management systems (PMS) and risk management systems (RMS). By breaking up the outsourcing of core IT infrastructure and RMS/PMS into separate components, you segregate service-provider risk, thereby reducing overall risk. Outsourcing saves money upfront but carries other risks that must be managed. Funds must pay attention to the technology provider’s security, privacy and data-recovery capabilities. And, remember: you can have the most robust IT infrastructure, but if the personnel and SLAs behind that infrastructure are lacking, then it means nothing. Another important consideration in outsourcing is to find a provider that can connect you to a community of experts and professionals that will help you grow. Things to consider when outsourcing core IT infrastructure include: Public (cloud-based services) versus privateAssessing the Support and Service Level AgreementsAssessing provider’s security, privacy and disaster recovery capabilities Choose wisely when deciding on a provider and remember: you are responsible for everything your supplier does. You still need to have someone in-house monitoring things. Think long and hard about whom you outsource to since investors will be examining your decisions closely. Courtesy- Bloomberg