Fund Accounting
General ledger, trial balance, income statement, balance sheet maintained according to GAAP or other applicable standards.
FUND ADMINISTRATION / FULL NAV PACKAGE
Institutional-Grade Fund Admin Without Building an In-House Back Office
Accounting, NAVs, statements, and year-end close are chaotic or overloading your CPA/team. Full fund administration gives you professional accounting, reporting, and audit support – without hiring a finance team.
Full Fund Administration
Accounting
General Ledger
Trial Balance
Financial Statements
NAV & Reporting
NAV Calculations
Investor Statements
Audit Support
Audit-ready, all year
The Problem
Managing fund accounting in spreadsheets, scrambling at year-end to get books audit-ready, and paying CPAs to reconstruct history for K-1s is expensive, risky, and unsustainable as you scale.
What Is Fund Administration?
Fund administration is the back-office engine that keeps your fund's books, investor balances, and reports accurate and up to date.
NAV Calculations
Periodic Net Asset Value calculations: assets minus liabilities, allocated across investors based on ownership.
Investor Capital Accounts
Track contributions, distributions, transfers, and ownership percentages for each investor.
Reconciliations
Bank, brokerage/custodian, position, and cash reconciliations to ensure accuracy.
Investor Reporting
Capital statements, NAV statements, periodic reports, and notices to investors.
Audit & Tax Support
Prepare schedules and workpapers for auditors and CPAs. Support K-1/1099 production.
What Is NAV and How Is It Calculated?
NAV (Net Asset Value) is the value of the fund at a point in time: assets minus liabilities, allocated across investors.
Value Holdings
Mark investments to fair value using appropriate methodologies for each asset class.
Accrue Income & Expenses
Record earned income and accrued expenses including management fees and fund expenses.
Reconcile
Verify positions, cash, and transactions against custodians, banks, and brokers.
Allocate
Divide net value across investors based on ownership percentages and fee structures.
NAV Fund Services typically delivers official NAV within two business days for hedge funds. Real estate and PE fund timelines depend on valuation frequency.
What Is a Trial Balance?
A trial balance is a summary list of every account in the general ledger (cash, investments, fees, etc.) and its debit/credit balance. All debits and credits must match – if they don't, something in the books is wrong. It's a built-in accuracy check before producing financial statements and NAV.
How Is This Different From What My CPA Does?
Your CPA typically focuses on tax compliance and filings (K-1s, returns). Fund administration handles day-to-day books and investor accounting year-round.
What Your CPA Does
- Tax compliance and filings
- K-1 and 1099 preparation
- Tax planning and strategy
- Year-end tax adjustments
What Fund Admin Does
- Day-to-day fund accounting
- NAV calculations
- Investor capital accounts
- Financial statements
- Reconciliations
- Audit workpapers
The administrator feeds clean, reconciled data to your CPA, so they're not recreating the books at year-end. Many CPAs prefer working with professionally administered funds.
Full Fund Administration Services
Fund Accounting
- •General ledger maintenance
- •Trial balance preparation
- •Income statement and balance sheet
- •GAAP compliance
- •Expense tracking and accruals
NAV & Performance
- •Periodic NAV calculations
- •Performance reporting (IRR, MOIC, TWR)
- •Management fee calculations
- •Carried interest and waterfall calculations
- •Realized and unrealized P&L tracking
Investor Services
- •Capital account maintenance
- •Subscription and redemption processing
- •Investor statements and reports
- •Distribution calculations
- •DTCC AIP reporting (included)
Reconciliations
- •Bank reconciliations
- •Custodian/broker reconciliations
- •Position reconciliations
- •Cash reconciliations
Audit & Tax Support
- •Audit-ready workpapers
- •Auditor coordination
- •Tax schedules and support
- •K-1 data preparation
- •Form PF support
Business Outcomes
Audit-Ready Books, All Year
Not just at tax time. Clean, reconciled books mean faster audits, fewer surprises, and lower audit costs.
Faster, Cheaper K-1s
Your CPA receives organized, reconciled data. K-1s go out earlier with fewer corrections.
Stronger Story to Investors
Professional NAV and reporting builds trust and supports larger tickets. Institutional LPs expect third-party administration.
No Back-Office Hiring
Get institutional-grade fund accounting without building an internal finance team.
Independent Verification
Third-party administrator provides independent books and NAVs, reducing operational and valuation risk.
Scale Without Breaking
Works for SPVs and sub-$50M funds, continues to work when you cross $100M+. No re-platforming required.
Who Is This For
Real Estate Funds
Closed-end real estate funds, syndications, and property-focused vehicles with complex waterfall structures.
Private Equity & Venture
PE and VC funds with capital calls, distributions, carried interest, and multi-year investment horizons.
Private Credit
Lending funds with loan-level accounting, interest accruals, and complex fee structures.
Multi-Manager Platforms
Fund of funds and multi-manager structures with aggregated reporting and allocation tracking.
Emerging & Sub-$50M Funds
Can't justify a full in-house back-office hire, but have institutional-like needs. Get professional administration from day one with right-sized pricing.
Cayman / Offshore / Institutional Funds
Third-party fund administration is expected or required by investors, auditors, or regulators. Our partner has 30+ years of multi-jurisdiction experience.
Managers Considering a Back-Office Hire
Before you hire 1-2 full-time ops/finance people, consider outsourced administration. You get a team of specialists for less than the fully-loaded cost of one hire.
Full Fund Administration Package
Full Fund Administration
Contact for Pricing
Complete fund administration with all services included
- Fund accounting and general ledger
- Periodic NAV calculations
- Financial statements (balance sheet, income statement, trial balance)
- Investor capital account maintenance
- Subscription and redemption processing
- Distribution calculations
- Reconciliations (bank, custodian, position)
- DTCC AIP connectivity
- Audit workpapers and support
- Tax schedule preparation
- Dedicated fund accountant
- Client success manager
Optional: K-1 Production Support
Add comprehensive K-1 production support for faster, more accurate tax document delivery.
Learn About K-1 SupportCommon Concerns
"Our CPA already handles everything – accounting, taxes, and K-1s."
That's great – we're not trying to replace a good CPA. We make their life easier by providing institutional-grade fund accounting and investor reporting all year, so they're not recreating the books at year-end. Many CPAs prefer when a fund admin maintains the GL, investor capital accounts, and NAVs, and they focus on tax.
"We're too small – we can't afford fund admin."
That's exactly where we help. NAV and Covercy are specifically structured to be cost-effective for funds under $50M. You get a fractional back office instead of hiring a full-time team. One late audit or investor complaint can cost more than a year of administration.
"Regulators don't require a third-party admin for us."
You're right – for many onshore funds, there's no explicit regulatory requirement. But for Cayman and institutional investors, third-party administration is expected. The real driver is investor confidence: independent books and NAVs reduce operational and valuation risk.
Full Fund Administration FAQs
- What exactly is "fund administration"?
- Fund administration is the back-office engine that keeps your fund's books, investor balances, and reports accurate and up to date. It includes fund accounting, NAV calculations, investor capital accounts, statements, reconciliations, and support for audit and tax.
- What is NAV and how is it calculated?
- NAV (Net Asset Value) is the value of the fund at a point in time: assets minus liabilities, allocated across investors. Administrators calculate NAV by valuing holdings, accruing income/expenses, performing reconciliations, and allocating to investors based on ownership.
- How often do you calculate NAV?
- Frequency depends on fund type and strategy. Hedge funds often need daily or weekly NAV. Real estate and PE funds typically calculate quarterly or at specific events. We'll match your fund's needs.
- How does this help with K-1s and tax season?
- Because books and investor ledgers are kept clean all year, your CPA receives a ready-to-use package instead of reconstructing history. K-1s go out earlier with fewer corrections, keeping investors happy.
- What types of funds do you support?
- We support most alternative investment fund structures: real estate (closed-end, open-end, syndications), private equity, venture capital, private credit, fund of funds, and multi-manager platforms.
- How quickly can you onboard our fund?
- Typical onboarding takes 2-4 weeks, depending on fund complexity and data migration requirements. We follow a structured process with clear milestones.
- Do you work with our existing auditors and CPAs?
- Absolutely. We coordinate with your auditors and CPAs, providing them with workpapers, schedules, and access to data. Many auditors and CPAs prefer working with administered funds.
Related Solutions
Transfer Agent Services
Start with investor operations before expanding to full accounting.
Learn moreDTCC / AIP Connectivity
Included with Full Fund Admin for RIA and custodian distribution.
Learn moreK-1 & Tax Support
Add K-1 production support for faster tax document delivery.
Learn moreReady for institutional-grade fund administration?
Talk to a specialist about full fund administration for your fund.