Woodfield Fund Administration provides Venture Capital fund managers with a comprehensive suite of services that increase efficiency and introduce best practices while reducing operating costs. Our team of experienced professionals provides high quality, customized solutions to Venture Capital fund managers. Growing trend among Private Equity funds to the adoption of external fund administration.
We combine a team of experienced private equity accountants with an accounting system specifically designed for closed end funds. This system allows us to systematically calculate management fees and carried interest and create detailed fund and investor performance reports. It accounts for investments denominated in foreign currencies, investor capital activity, special allocations to GP’s and LP’s and enables us to produce consolidated financial statements at any level of the entity.
For each reporting period, Woodfield provides clients with a set of comprehensive, ILPA-Compliant financial statements, all in accordance with U.S. GAAP or IFRS. Included in the financial reporting package are the following standard statements and reports:
- Investor Statement
- Balance Sheet
- Detailed Portfolio Holdings Report, including Investment-Level IRRs
- Statement of Operations
- Statement of Changes in Partners’ Capital
- Cash Flow Statement
- Comprehensive General Ledger Detail
- Investor Summary Report (with detail for each partner including:)
- Total Commitment
- Funded Commitment
- Beginning NAV
- Capital Called and Distributed
- Partner Income and Expense, Fees, and Manager Carry
- Fund-Level IRR Table
The Woodfield team has extensive experience producing financial statements for General Partner entities and subsidiary entities. This includes offshore blockers, SPEs formed to hold portfolio companies, and other SPE structures. In addition, we are capable of handling complex foreign currency translation calculations for offshore entities and are well-versed in accounting for side car, co-investment, joint venture and general partner carry entities.
We take care of all aspects of processing investor subscriptions including:
- Answer investor questions regarding the execution of documents
- Review and approve all subscription forms
- Issuing confirmation notices
- Communicate with investors regarding deficiencies in subscription documents
- Determining how the investor wishes to receive communications
- Maintain files with signed original copies of all subscription documents
Maintain a roster of capital commitments, calls met and calls outstanding
- Issue capital call and confirmation notices
- Review sources used to fund accounts
- Track funds received
- Calculate distribution amounts
- Issue confirmations
Woodfield handles Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance requirements including:
- Verifying investor identity
- Documenting transactions
- Verifying fund origins
- Verifying transferee identity
- Checking all investors against AML watch lists, including the Office of Foreign Assets Control (OFAC) list and maintaining records related to AML investigations
- Ongoing weekly scan of all investors against the OFAC list
Investors are becoming increasingly concerned about the lack of adequate controls on the movement of money from unregulated private investment funds. Woodfield has a robust system of financial controls in place to protect investors. These controls are designed to require the approval of both Woodfield and the Fund in order to transfer money to a third party.
This system relies on the principle of joint control (the Fund and Woodfield) on the movement of cash and also separation of duties within Woodfield. Moreover, the bank account is generally held at a major institution that has elaborate security safeguards and other controls, such as ACH debit blocks.
Woodfield has extensive experience accounting for GP Carried Interest Vehicles. Within our private equity accounting system, a Carried Interest Vehicle is set up as feeder fund through which carry-holders can invest and also receive distributions of carried interest. This structure allows for the necessary level of transparency while at the same time maintaining the desired level of confidentially for the carry-holders. A comprehensive set of financial statements, including full general ledger detail, investor statements, and performance reporting are produced for the carry vehicle on a quarterly basis.