Fund Allocation | Fi-Tek Hedge Fund Platform

Fund Allocation

HedgeTek’s easy to setup modules handle a vast array of complex investor accounting solutions including setup of investment classes, fee structures and tracking side pocket investments across multiple layers of master-feeder accounts for both monetized and unitized funds. HedgeTek comes preloaded with a large collection of standard reports and also provides intuitive tools to extract data for customized reporting.

  • HedgeTek supports monetized and unitized funds, with integrated multi-layered master feeder structures and allocations. It also provides systematic side pocket carveout with accounting across classes.
  • Automated interface with General Ledger systems, fee parameters (changeable at partner, tranche or class series level), partnership contact information, Profit & Loss categories, directed gains (stuffing) and all other setup parameters for creating a partnership in HedgeTek.
  • HedgeTek has multiple allocation options: "full netting", "partial netting", and "book only". The benefit of the first two capital allocation methodologies is that book and tax allocations are performed simultaneously and Federal K-1's that can be generated after necessary tax adjustments.
  • HedgeTek supports wide spectrum of private equity functions, such as commitments, capital calls and waterfall distribution.
  • Lockup and penalty profiles can be set up to address different penalty and locking rules with additional facility to have a one day window to withdraw within the Lock-in period, without paying any penalty.
  • Facility to calculate rolling Rate of Returns and to compare fund/investor performance with benchmark index.
  • Capital activities can be recorded through intuitive user interfaces that speeds data entry. Facility also exists to seamlessly integrate with feeds from different surround systems.
  • Subscriptions, redemptions or transfers can be booked in the system as an opening or closing transaction.
  • The system supports various share transactions like subscriptions, redemptions, semi-automatic roll up of shares from one series to another, transfer and exchange of units between investors/classes, dividend distribution and reinvestments.
  • Facility to enter user defined GAV per share and/or user defined FX rates for recording subscriptions and redemptions.
  • System enables booking and editing of future subscriptions, redemptions and transfers by issuing confirmations and contract notes for the same.
  • Enables accounting of sub-partnerships investing in illiquid assets through carve out transactions.
  • Automatic carve out facility exists to transfer funds from the liquid pool to create a side pocket and to do follow up investments by selecting all or some investors.
  • On partial or full realization of side pockets capital moves back to the liquid pool.
  • Facility exists for investors to be in the liquid pool with zero book capital and have investments in the side pockets. Separate reserve account is maintained for these investors at the liquid pool level.
  • Separate accounting is maintained for each side pocket with facilities to transfer book income and all fees to the parent tranche in the liquid pool.
  • Facility exists to calculate accrued performance fees at the side pocket level and delay crystallization until realization of the side pockets
  • Side pocket allocation can be done based on cost, commitment or book capital.
  • Several types of capital based fees can be calculated at the fund, partner, tranche or class series level.
  • Fee parameters are rule based and can be varied by partner, tranche and class.
  • Fee can crystallize in advance, or in arrears based on opening, closing or average balances within a specific fee period.
  • Fees can be either flat or tiered.
  • Fees can be calculated in local class currency.
  • All system-generated fees can be manually overridden.
  • Computations of selected tiered/fixed values with different measurement periods.
  • Computations of selected tiered/fixed Benchmark/Hurdle Rates (both cumulative and non-cumulative).
  • Option to exclude specified P&L categories from being subject to incentive.
  • System maintains high water at partner, tranche and class series level.
  • Multiple hurdle parameters available.
  • Claw-back Provision.
  • Catch-up Provision with a minimum return.
  • Facility to delay incentive crystallization.
  • Equalization.
  • Allows master and feeders to be in different currencies with automated flow of allocated data to feeder fund in the currency of the feeder fund.
  • Facility to create classes with different currencies.
  • Computes FX gain loss.
  • Facility to calculate all fees in local currency of the class.
  • Feature exists to download FX rates with time stamp from any external sources.
  • Facility to enter subscriptions and redemptions in different class currencies.
  • Rounding calculations.
  • Reports can be generated in both local or base currency.