What are the Roles and Responsibilities of a Hedge Fund Administrator?

Hedge fund administrators are third-party service providers who help clients structure their funds, whether onshore or offshore funds. They independently evaluate the assets and valuation of the fund.  The fund administrators will have knowledge of the filing and legal requirements in the fund’s country of domicile and, where a fund is listed, of the relevant stock exchange listing and filing requirements. The hedge fund administrators handle a wide range of roles and responsibilities.

Fund administrator responsibilities

Among other duties and roles, fund administrators are responsible for financial reporting; preparing reports to stockholders; opening and controlling fund bank accounts; daily, weekly and monthly Net Asset Valuation (NAV); and supervising the dissolution or liquidation of the fund, if required.

Cayman Islands fund administrators

Cayman Islands fund administrators help clients through the process of structuring their fund from the beginning. An experienced, professional team that includes attorneys and certified accountants helps guide clients through the comparative advantages of very complex legal and fiscal structures and helps develop new structures to fit specific needs of investors.

Comprehensive services

Fund administration services include fund of funds administration services (fund valuation processing, portfolio management, and subscriptions and redemptions processing); accounting and administrative solutions for the private equity industry (investment tracking and analysis, investor allocation and reporting, accounting services, cash management services, year-end financial services and FATCA reporting services; accounting services for fund managers in the Cayman Islands (generation of periodic NAV packages, position and cash reconciliation, tracking portfolio activity at a tax lot level, calculating annual expense budget and monthly accruals, and delivering reports to fund managers); and middle office services (asset valuation, analytics, and non-discretionary asset management).

Hedge fund administrators work in a well-regulated environment

Hedge fund administrators in the Cayman Islands cover a wide range of services, including assistance with incorporation of an offshore legal entity in the jurisdiction; collaboration with U.S. and offshore attorneys in the set-up of U.S. and offshore funds, and assistance in drafting offering documents and obtaining licenses and regulatory approval, if necessary. They also provide mutual fund services for investment and fund managers in the Cayman Islands, and shareholder and investor services for offshore and U.S. domestic funds.

Compliance services leverage a wide range of industry expertise, including top-tier banks, broker dealers, prime brokers, hedge funds and private equity firms. Fund administrators constantly monitor the regulatory environment within the financial services industry and offer outsourced compliance solutions to focus on risk detection.

Fund administration services in the Cayman Islands rely on professional, experienced teams working in a well-regulated, tax neutral, internationally respected business environment. Further, Cayman Islands laws assure full protection and confidentiality to investors, beneficiaries, shareholders and directors of the corporations registered in the Cayman Islands.