Fund Administration Assessment for Third-Party Administrators

Question Title

How much guidance does your current fund administrator provide?

No guidance. They just deliver the financials.

A little guidance. They answer my questions, but I usually reach out to them first.

Some guidance. They proactively share the current best practices around accounting and reporting with me.

A lot of guidance. They provide expert advice, insights, and examples of what other GPs do so my firm can outperform.

Question Title

Before launching a new fund structure, does your fund administrator walk you through any potential accounting implications, such as types of allocations, financial reporting models, fee arrangements, and distribution modules?

Yes

Question Title

How comfortable is your fund administrator with complex fee arrangements and P&L allocation modules?

Not very comfortable. They seem unsure of how to implement the fee structure and execute financials quickly.

Somewhat comfortable. Even if my primary accounting team doesn’t have experience with our fee structure, I know someone at the fund administrator is providing oversight.

Very comfortable. I am confident that my accounting team has well-rounded expertise and experience with various fee arrangements.

Question Title

How tech-forward is your fund administrator?

Not at all. Everything is handled through an Excel file and over email.

Somewhat. They have a system, but it stands apart from my tech stack.

Very. Information is stored in a centralized system, enabling my internal teams, third-party providers, and LPs to access any information needed at any time.

Question Title

It is becoming a standard for fund administrators to be SOC-1 Type 2 certified, meaning they have designed, documented, and implemented their internal processes and controls. Those controls are then verified by an independent auditor that they exist, and they are effective.

Is your current fund administrator SOC-1 Type 2 certified?

Yes

I don't know