Home / Solutions / CRE Banking / Fund Administration

Fund administration
software with built-in banking

Maximize your technology investment with Covercy’s end-to-end fund administration & real estate banking solutions.

Try For Free

Covercy is trusted by:

 

Everything you need to know
about fund administration in real estate

What is fund administration?

Fund administration typically involves managing a pooled investment fund that collects capital from multiple investors. These funds are often larger in scale than individual syndication projects and can invest in a variety of properties or real estate-related assets.

Investor Relations and Reporting

Real estate fund administration involves ensuring clear, transparent, and regular communication with your investors. This includes providing detailed and accurate financial reports, updates on property performance and market conditions, and responding to investor queries, all aimed at maintaining investor confidence and trust.

Compliance and Regulatory Oversight

Adhering to legal and regulatory requirements relevant to real estate investments is a critical objective for real estate fund administrators. This involves ensuring compliance with local and international laws, filing necessary reports, and adhering to financial and ethical standards, to avoid legal issues and maintain the fund’s integrity.

Financial Management and Performance Optimization

Of course, fund administration also includes managing the fund’s financial aspects effectively, which includes overseeing investments, monitoring cash flows, and executing strategic financial decisions. The goal is to maximize returns for investors while minimizing risks, ensuring the profitable and sustainable operation of the real estate fund.

At Covercy, we believe that every GP or deal sponsor who manages investors deserves access to centralized investment management & real estate fund administration tools.

Choose from three investment management software packages based on your firm’s unique needs, including a forever-free version for up to three assets, that can grow and flex with you.

Get Started Free

Fund administration meets banking & payments

fund administration with built in banking

Covercy is the first investment management platform designed for commercial real estate fund administration. With Covercy, you can track asset performance across a variety of classes, including funds and individual assets within retail, office, industrial, and multifamily properties.

Some of the features offered by Covercy’s robust platform include portfolio tracking, performance analysis, deal management, CRE banking, automated waterfall calculations, distribution and capital call payments via ACH debit, and built-in financial reporting. These tools can help investors and fund administrators monitor the performance of their real estate investments, assess risk, and make informed decisions about buying, selling, or holding properties.

More About Investment Management Software
fund administration with built in banking

The benefits of Covercy’s
fund administration tools

Automated Transactions

Covercy offers fund administrators the unique ability to automate distributions and capital collections via ACH debit. This functionality streamlines financial transactions, reduces errors, and increases efficiency while ensuring timely and accurate movement of funds, which is critical for maintaining investor trust and smooth operation.

Data Centralization

A centralized data repository provided by Covercy enhances data accessibility and integrity. It allows for a single source of truth for all fund-related information, reducing inconsistencies and improving decision-making processes.

Scalability

As a fund grows in size and complexity, manual methods or basic tools like Excel become inefficient and prone to errors. A robust software platform like Covercy can easily scale to handle the increased volume and complexity of transactions, investor communications, and reporting.

Enhanced Reporting Capabilities

Covercy gives real estate fund administrators access to advanced reporting features, enabling the creation of comprehensive, customizable reports. These reports can be invaluable for tracking fund performance, investor reporting, and regulatory compliance.

Compliance Management

Regulatory compliance is a critical aspect of real estate fund administration. A software platform like Covercy’s can help ensure adherence to various legal and regulatory requirements, including automated compliance checks, record-keeping, and reporting.

Time & Cost Efficiencies

By automating routine tasks, centralizing data, and improving accuracy, Covercy can significantly reduce the time and cost associated with real estate fund administration. This efficiency allows the fund management team to focus more on strategic decision-making and investor relations.

See all Covercy fund administration features

fund administration software for real estate GPs

When (Or If) to Outsource Fund Administration

General Partners (GPs) often weigh several factors when deciding between outsourcing fund administration duties or managing them internally with the help of investment management software.

Outsourcing fund administration brings specialized expertise, particularly in areas like regulatory compliance, financial reporting, and investor relations, which may not be present internally. It also allows GPs to allocate their resources more effectively, focusing on core activities such as investment strategy and property management. This option can be more cost-efficient for GPs with smaller operations or fewer funds, offering scalability to handle varying workloads without increasing internal staff significantly. Moreover, the professionalism of external administrators can bolster investor confidence.

On the other hand, using internal software for fund administration gives GPs greater control over processes and better integration with existing systems. While initial software setup costs can be high, it can prove more economical in the long run, especially for funds with substantial assets under management. Software solutions offer customization, enhanced data security, real-time data access, and flexible reporting, beneficial for dynamic fund management. GPs inclined towards technological solutions might prefer this approach for its efficiency and analytical capabilities.

Many GPs opt for a hybrid approach, combining the strengths of both outsourcing and technology. This method involves outsourcing complex or compliance-heavy tasks while utilizing software for everyday management and reporting. This balanced strategy offers a comprehensive solution for fund administration.

Ultimately, the choice between outsourcing and internal software management hinges on the GP’s operational scale, cost considerations, expertise needs, control preferences, and strategic priorities.

Get Started with Covercy Today
fund administration software for real estate GPs

Steps to Starting
a Real Estate Fund

Many real estate GPs have experience in commercial real estate syndication & are considering adding a fund (or multiple funds) to their portfolio. Starting a real estate fund is a complex process, typically involving several key steps, and the initial stages are crucial in laying a strong foundation for the fund’s future success.

 
123

fund administration tasks

Defining Investment Strategy and Objectives

The first step involves articulating a clear investment strategy and objectives for the fund. This includes deciding on the type of real estate investments the fund will focus on (such as residential, commercial, industrial, etc.), the geographical regions of interest, the risk profile, and the expected returns. The GP needs to develop a comprehensive business plan that outlines the fund’s goals, target market, value proposition, and how it differentiates from existing offerings in the market.

fund adminstration in commercial real estate

Legal Structure and Compliance

Establishing the legal structure of the fund is a critical step. This involves choosing the appropriate fund structure (such as a Limited Partnership, LLC, or REIT), which will have implications for taxation, investor rights, and regulatory compliance. During this stage, the GP must also ensure compliance with relevant securities laws and regulations, which often involves registering the fund with regulatory bodies and preparing necessary legal documents like Private Placement Memorandums (PPMs), subscription agreements, and operating agreements.

fund administration for real estate with covercy

Capital Raising

Once the fund’s strategy and legal structure are in place, the GP begins the process of capital raising. This involves identifying and reaching out to potential investors, which could include high-net-worth individuals, institutional investors, or family offices. Building a strong network and establishing trust with potential investors is critical. The GP needs to effectively communicate the fund’s strategy, objectives, potential returns, and risks to attract initial capital commitments.

fund administration tasks
fund adminstration in commercial real estate
fund administration for real estate with covercy

Defining Investment Strategy and Objectives

The first step involves articulating a clear investment strategy and objectives for the fund. This includes deciding on the type of real estate investments the fund will focus on (such as residential, commercial, industrial, etc.), the geographical regions of interest, the risk profile, and the expected returns. The GP needs to develop a comprehensive business plan that outlines the fund’s goals, target market, value proposition, and how it differentiates from existing offerings in the market.

Legal Structure and Compliance

Establishing the legal structure of the fund is a critical step. This involves choosing the appropriate fund structure (such as a Limited Partnership, LLC, or REIT), which will have implications for taxation, investor rights, and regulatory compliance. During this stage, the GP must also ensure compliance with relevant securities laws and regulations, which often involves registering the fund with regulatory bodies and preparing necessary legal documents like Private Placement Memorandums (PPMs), subscription agreements, and operating agreements.

Capital Raising

Once the fund’s strategy and legal structure are in place, the GP begins the process of capital raising. This involves identifying and reaching out to potential investors, which could include high-net-worth individuals, institutional investors, or family offices. Building a strong network and establishing trust with potential investors is critical. The GP needs to effectively communicate the fund’s strategy, objectives, potential returns, and risks to attract initial capital commitments.

Learn more about investor communications

More about real estate
fund administration

Blog Post

Everything You Need to Know About
How to Start a Real Estate Investment Fund

READ MORE

Ebook

Investor Communications:
3 Areas Where Better Service Equals Better Results

DOWNLOAD NOW
cross border payments FAQ

Help Center

How to Set Up A Fund in the Covercy GP Platform

LEARN HOW
Browse all covercy resources

Tailor Covercy’s investor management
features for your real estate firm

Free
Free investment management software
Free plan includes:
  • Investor management
    Manage your assets and your investors all in one place.
     
  • Investor Portal with reporting
    Elegant investor portal where your investors can review performance.
     
  • Fundraising and capital call management
    Promote new properties/assets via the platform. Record interest level and funding.
     
Get Started
Standard
Save 20%
Automate payments and increase productivity
All the benefits of Free, and:
  • Full Investor Portal
    Give access to your investors: new opportunities, assets, reports, documentation, K1s.
     
  • Automated distribution payments
    End-to-end automated distribution payments. Calculate, notify, distribute directly to your investor's bank account.
     
  • Capital call collection with ACH debit
    After fundraising commitment, automate the capital call payment processing and reconciliation.
     
Try for free
Pro
Save 20%
For growing teams and funds
All the greatness of Standard, and:
  • Funds (with capital commitments)
    Allows raising funds in an open fund structure.
     
  • FDIC insured wallets per Fund
    All funds in the Covercy Wallet are FDIC insured by our banking partner.
     
  • Fully customizable permissions
    User roles fully customizable.
     
Try for free
SEE ALL FEATURES & PRICING

Not sure which is right for you?
Book a demo and we’ll help you decide.

Try it Free Request a Demo

Review Covercy on G2

Solutions

Distribution Payments

Document Sharing

Performance Reporting

Investment Database Management

Investor Portal

Fundraising Pipeline Management

Cross Border Payments

Company

About

Covercy is the first real estate syndication platform where banking meets investment management. Save time with our automated distribution & capital call payment processing, gain your LPs’ trust with our intuitive Investor Portal, and generate interest from capital funds held in your Covercy Wallet –  all in one platform.

Resources

Help Center

Contact Sales

Contact Support

Features

Events

The Journal

Commercial Real Estate Investing

BOOK A DEMO

Legal

Terms of Use

Privacy & Cookie Policy

Complaints

Covercy VISA Debit Cardholder Agreement

Regulation

Sitemap

Banking services:

Covercy is a financial technology company, and is not a bank. Banking services provided by Thread Bank, Member FDIC.
The Covercy Visa Debit Card is issued by Thread Bank, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.
Your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions on the sweep program.

.

Payment services:

  • The Currency Cloud Limited (Non MIFID related products). Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199)
  • Covercy Europe Limited. Registered in England No. 675000. Registered Office: 5 Elstree Gate, Elstree Way, Borehamwood, Hertforshire, WD6 1JD, UK
  • Covercy Technological Trading Limited. Registered in Israel No. 57797. Registered Office: 3 Ha-Yetsira St, Ramat Gan 5252141.
  • For clients based in the European Economic Area, payment services for Covercy Europe Ltd. are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 – 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701).
  • For clients based in the United States, payment services for Covercy Europe Ltd. are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York , NY 10011.
  • For clients based in the United Kingdom and rest of the world, payment services (Non MIFID related products) for Covercy Europe Ltd. are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).

All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk.

© Copyright - Covercy | 7 World Trade Center, New York, NY 10006