Services

Crederian offers a host of services above and beyond those provided by a traditional administrative services firm. Timely, accurate fund administration is critical to the long-term success of any hedge fund.  Our enhanced fund administration services combine the expertise of accounting professionals and administration resources to provide the tools you need to manage your business.

The Case for Outsourcing
Our full line of services and experienced professional staff allow the manager to focus on managing client assets. The value of having a solid financial operation that adheres to best practices is demonstrated from a study of 100 hedge fund failures conducted by CAPCO (The Capital Markets Company N.V.) in 2003 which indicated that 50% of hedge fund failures were due to operational risk rather than investment risk. A surprisingly low 38% of hedge funds failed as a result of bad portfolio management decisions.

Portfolio and Partnership Accounting

• Maintenance of all accounting records of the fund
• Automatic uploading of security transactions into our accounting records
• Daily reconciliation of cash and security positions to prime broker/custody statements
• Verification and recording of income and expense accruals
• Provision of portfolio and accounting records to the investment manager
• Calculation of Net Asset Values
  • Portfolio pricing using independent, recognized pricing sources
  • Calculate performance and management fees
• Preparation of balance sheet and income statement
• Accounting for multi-series, multi class and/or master-feeder structures
• Recording capital contributions and withdrawals from investors
• Fund of Funds Accounting including:
  • Processing  of underlying fund contributions/withdrawal transactions
  • Compilation  and summary of underlying fund valuations

Fund Administration & Financial Reporting

• Preparation of periodic financial statements and management reports
• Review of and reconciliation of income and expenses
• Calculation and reporting of fund and investor interests on a periodic basis
• Coordination of applicable regulatory filings
• Establishment of  customized reporting requirements with client
• Review of offering documents and recommend operational procedures on an ongoing basis
• Coordination of preparation of tax returns and K1s with audit firm
• Complete support for audited financial reporting:
  • Liaison with auditors and coordinate timetables for completing the audit process
  • Prepare a detailed audit package for the auditor
  • Preparation of draft GAAP financial statements and footnotes for annual report

Investor Reporting

• Maintenance of  shareholder register and partners’ capital accounts
• Documentation of  investor subscriptions and redemptions into the accounting records
• Verification of subscriptions and redemptions on a timely basis
• Preparation of investor capital account statements
• Preparation of  investor confirmations and statements
• Assistance in the anti-money laundering (AML) and USA PATRIOT Act compliance
• Facilitation of  investor money movement

Tax Services

• Preparation of U.S. Federal 1065, state and local tax returns
• Preparation of K-1, 1099 and 1042 reporting
• Preparation of PFIC statements
• Assistance with related tax elections and issues
• Preparation of periodic tax estimates
• Assistance with  tax consulting and planning

Start-up and Pre-Launch Services

• Introduction and liaison with local and overseas legal counsel
• Review of offering memorandum and other fund legal documents
• Consultation  on fund structures
• Development of operational procedures and workflow
• Introduction to prime brokers, custodians, lawyers, audit firms and independent directors
• Provision of dedicated client transition team
  

Other Fund Services

• Administration for Separately Managed Accounts
• Consultation and guidance on fund structures
• Assistance with mergers and acquisitions
• Assistance with due diligence reviews
• Risk and exposure reporting package

Additional Services Available for Fund Managers

• Family office services
• Concierge services
• Gift, estate and trust planning
• Assistance with insurance planning and coverage