Fund Accounting for Financial Services

Gain a competitive advantage and increase profitability

Three people reviewing a financial chart on a computer

Any firm or company with fund entities—private equity firms, asset management firms, hedge funds, and family offices—needs a platform that gives them a competitive advantage and increases profitability. But there are barriers that must be addressed:

  • 1

    Ensuring accuracy of recoverable expenses and management fees

    Correctly allocating revenues and recoverable costs among funds can be time-consuming and error-prone. Demonstrating compliance,  profitability, and accountability can be nearly impossible with siloed data, manual processes, and lack of transparency. All too often, time is spent trying to resolve these issues using only Excel spreadsheets.

  • 2

    Becoming more competitive

    To attract more investors, you need to stay ahead of the competition by offering what they cannot, but you need to do it profitably. This requires the flexibility to handle everything from cost-effectively providing self-service options to managing complex fund structures.


Staying ahead of the competition

Firms that are flexible and comprehensive in their approach to blockers and splitters can:

Everything you need in a single, integrated solution

With HSO’s solution for Fund Accounting, you get support of complex fund family structures, enabling the management of the reimbursable expenses of those structures.

  • Have a complete audit trail, from the fund entity through the fund structure, across to the management company to the original Accounts Payable transaction and invoice copy.
  • Manage financial processes for expense allocation and/or fund accounting, depending on your requirements.
  • Use it as a single, end-to-end solution for all your needs or integrate it with the fund accounting tools your management companies use.

The tale of two Private Equity firms

PE Firm Tames Complex Global Entity Relationships

One of the largest global timberland managers, with $3B+ in assets/1.7M acres under management, was struggling with a fund accounting system that was expensive to maintain and required complex consolidations and eliminations across a large number of entities, levels, and currencies, making it difficult to report across the entities.

With HSO’s Fund Accounting, fully integrated with key business applications, the firm’s system was optimized for global, complex entity relationships. The firm now has a fully automated financial consolidation process with visibility across all funds and entities.

PE Firm with Multiple Entities Gains Control Over Allocations and Disbursements

A global growth investor with $80B+ AUM and 21 PE funds invested $100B+ in 40 countries has a complex multi-entity structure that was causing challenges at all levels, like difficulty with securely extracting data from multiple sources, which slowed allocations and disbursements…and an aging ERP wasn’t equipped to meet the challenge.

HSO implemented a complete ground-to-cloud transformation with D365 Finance and HSO’s Fund Accounting, which streamlined muti-entity fund accounting processes with near real-time data access
and reporting.

Two solutions in one: Helping asset management firms maintain their books and their investments

For management companies

HSO’s Fund Accounting helps you:

  • maintain books and records for your management companies,
  • drive accurate allocations with complete transparency,
  • and generate intercompany entries on fund and corporate accounting books.

By automating your processes, you can consolidate hundreds of entities on multiple levels in minutes, regardless of complexity. You get the flexibility to work more efficiently and offer more options to investors, like billing top-level fund families or managing down to each sub-fund company, integrated with your fund accounting tool.

For fund entities

Regardless of how complex your funds are structured, you have what you need with HSO’s Fund Accounting. Beyond a typical ERP:

  • you get the tools you need to maintain books and records for your investment portfolio,
  • perform capital calls and distributions to investors,
  • and provide reporting to management on the performance of fund assets and allocations.

Visibility and transparency

Whether you’re using HSO’s Fund Accounting for management companies or fund entities, you get  visibility and transparency into the end-to-end flow of all your transaction allocations:

Free your data, tear down the silos

If you’re using HSO’s Fund Accounting for both your management companies and fund accounting, you’re at an instant advantage. With one system, your data is always up to date and correct.

With confidence in your data and the ability to access it in near real time, you won’t have to worry about reconciliations between fund accounting, financials, and data warehouses, and you’ll get reports you can depend on.

Learn more about our experience in Financial Services firms

Let's talk about Fund Accounting for Financial Services

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