Knowledge Center

Fund of Funds Conversion Process

11/29/2012
Alternative Investment Solutions
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Business Challenge

One of the world’s largest investment consulting firms, overseeing more than 900 clients worldwide, began its formal search for a new service provider for 24 funds with more than $2.4 billion in assets invested in on-shore and offshore hedge funds of funds and private equity funds.

Our Solution

Due to our unique, consultative service model, customized reporting, and proactive implementation approach, our Alternative Investment group at U.S. Bancorp Fund Services was selected to provide fund services. We created a staged conversion and implementation plan correlating to the funds’ audit schedules. This allowed four to eight weeks of parallel processing to guarantee the client and its investors were comfortable with the process each step of the way, to support the efficient audit process for each fund, and to minimize impact to the investors.

At the time the contract was awarded, a team of dedicated compliance, administration, accounting, and technology professionals assembled to manage the conversion process and provide ongoing services. Weekly meetings with key participants, including the assigned managers, supervisors, and analysts, ensured a smooth implementation by initiating customized reporting to mirror processes to which the client was accustomed.

From preparing improved monthly NAV packages and posting investor correspondence to preparing financial statements and coordinating audits and tax workpapers, our processes ensured all key stakeholders were well versed in the complexities and unique requirements of each fund and were held to a high standard of accountability and customer service. An operations manager oversaw the daily environment to ensure all deliverables were met, while a client services manager was responsible for making sure the transition from the prior administrator was seamless through the verification, audit, reconciliation, and conversion of records. Our proactive, hands-on approach and conversion process ownership helped facilitate a successful transition.

In addition to providing fund administration, fund accounting, and banking services, the U.S. Bancorp Fund Services team provides this client with superior, comprehensive tax preparation, tax filing, and audit coordination services.

The Result

In less than three months, the first fund conversion was successfully completed on schedule, with the remaining conversions scheduled in phases over a six month period. Our client continues to award the team with new mandates and considers U.S. Bancorp a true partner in its success and future growth.

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