What Is An Investment Fund Administrator?

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If you want to create an investment fund in 2023, it’s import you understand the process. In particular, you need to know the role of a fund administrator.

Let’s start with the basics, if you want to create an investment fund, there a typically several steps:

  1. Develop a business plan: Determine the investment strategy, target market, and structure of the fund.
  2. Form a legal entity: Create a legal entity, such as a limited partnership or a corporation, to act as the fund’s manager.
  3. Obtain regulatory approval: Register the fund with the relevant regulatory authorities, such as the Securities and Exchange Commission (SEC) in the United States or the Financial Conduct Authority (FCA) in the United Kingdom. This process may involve filing paperwork and providing information about the fund’s structure, management and investment strategy.
  4. Raise capital: Raise capital from investors to be managed by the fund. This may involve marketing the fund to potential investors and issuing securities, such as shares in the fund.
  5. Hire service providers: Hire service providers, such as an investment advisor, fund administrator and custodians to handle various aspects of the fund’s operations.
  6. Ongoing compliance: Comply with ongoing regulatory requirements and file regular reports with the SEC or other regulatory authorities.

As you can see, creating an investment fund is a complex process. That’s why you need to partner with the right fund administrator.

An investment fund administrator is a firm that provides administrative services to investment funds, such as calculating net asset values, preparing financial statements – and maintaining records of fund transactions. They can also handle compliance and regulatory reporting.

Essentially, administrator’s act as an intermediary between the fund’s investors and the fund’s management company, helping to ensure that the fund is operated in accordance with its stated investment objectives and policies.

Here at IFINA – we’re an investment fund administrator with a difference. We simplify the fund formation process with our Cayman Fund Platform solution. This allows fund managers to create a legally segregated sub-fund on the “IFINA SPC” platform – with setup fees starting from just under $10,000 USD.

If you’d like more information about our services, just get in touch and a member of the IFINA team will be happy to help you.