Shadow Allocation
Automated Reconciliation Between Internal Investor Books & Administrator Data
Reconcile internal partner accounting records against third-party administrator feeds to identify allocation variances, streamline true-up workflows, and maintain independent fund oversight.
Independent Investor Accounting Verification
As part of HedgeTek’s investor accounting capabilities, Shadow Allocation compares internal investor accounting records directly against administrator statement data.
The system identifies capital and fee allocation differences between internal books and administrator files, replacing manual spreadsheet cross-checks with structured difference reporting and true-up entry workflows.
Core Operational Capabilities
Multi-Structure Allocation Accounting
Supports fund allocation structures including Master-Feeder, Fund of Funds, unitized, monetized, and private equity funds across classes and series.
- Calculates management & incentive fees including equalization
- Handles side pocket allocations and linked fund relationships
Automated Data Import & Matching
Ingests internal portfolio and accounting data alongside administrator statement files, eliminating manual spreadsheet conversion.
- Automated data download and import between accounting systems
- Tolerance-based matching for capital and fee balances
Difference Reporting & Variance Analysis
Generates variance reports highlighting allocation differences requiring review between internal books and administrator calculations.
- Itemized variance reporting at partner and fund performance levels
- Robust query wizard tool for customized data extracts
Dual-Book & True-Up Processing
Maintains dual book and tax allocation records to facilitate period-end true-up entries, partner statements, and tax reporting requirements.
- Dual book tracking for internal governance and administrator true-ups
- Compliance fields supporting regulatory filings (AML/KYC, FATCA, CRS)
Reconciliation Sequence
Import internal GL records alongside administrator statement files.
Execute tolerance-based matching across capital balances and fee calculations.
Generate itemized variance reports highlighting allocation discrepancies.
Finalize period-end true-up journal entries for dual-book accounting.
Request a Demonstration of Shadow Allocation
Contact our product team to learn how HedgeTek® and Shadow Allocation simplify investor accounting and reconciliation.