Investment Operations
Fund treasury operations and cash management
Cash is where operational errors become losses. Fundtec’s treasury operations team forecasts, funds and controls fund cash and collateral every day, under documented wire controls.
In one minute
Fund treasury operations is the daily management of a fund’s cash and collateral: forecasting balances, funding settlements and margin calls, releasing payments under dual-authorization controls, moving capital call and distribution cash, and monitoring collateral across prime brokers and OTC counterparties. Fundtec provides outsourced treasury operations for hedge funds, private credit and private equity managers, on the client’s systems or on Tychi.
Managers whose desk, administrator and investors need to see the same numbers, and whose middle office has outgrown spreadsheets or a stretched in-house team.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What fund treasury operations covers
Treasury operations sits at the point where every other middle office function turns into money. A settled trade moves cash. A margin call needs funding before a deadline. A capital call brings investor money in; a distribution sends it out. Each movement has to be forecast, approved, executed and reconciled, and each is a potential point of fraud or error.
Fundtec’s treasury operations team is part of our middle office. It maintains a single, consolidated view of cash and collateral across every bank, prime broker and counterparty, prepares payments for release by your authorized signatories, and reconciles every movement back to its source.
Fundtec does not hold client money or act as a signatory. We prepare, verify and reconcile; release authority always stays with the client under its own bank mandates.
Treasury operations services
- 01
Cash management and forecasting
Daily projected balances by account and currency, built from settlements, margin, fees, subscriptions, redemptions and expected income. Shortfalls and idle cash are flagged to the investment team early.
- 02
Funding and cash movements
Funding of settlements, broker transfers and inter-account sweeps prepared against the forecast, with supporting documents attached for approval.
- 03
Capital calls and distributions
Cash from capital calls matched to notices and investor records; distribution payments prepared from the approved distribution waterfall and reconciled after release.
- 04
FX hedging support
Share-class and portfolio hedge exposures calculated, roll schedules maintained and hedge trades reconciled to counterparties. Hedging decisions remain with the manager.
- 05
Margin and OTC collateral
Initial and variation margin calls from FCMs and prime brokers checked and agreed; OTC collateral calls calculated under the CSA and disputed where values differ. See collateral management.
- 06
Broker balances and financing checks
Broker wallet and account balances monitored daily. Financing, stock borrow and interest charges are recalculated and verified against agreed spreads and rates.
Wire controls: how payments are released
The control framework Fundtec operates for every outgoing payment. Specific approval limits are set by the client.
| Control | What it does | Who performs it |
|---|---|---|
| Payment request with support | Every wire is linked to an invoice, notice, trade or approved instruction | Fundtec treasury analyst (maker) |
| Independent review | Amount, beneficiary and purpose checked against source documents | Second Fundtec reviewer (checker) |
| Call-back verification | New or changed beneficiary details confirmed by phone to a known contact, never to contact details in the request | Fundtec, with log retained |
| Dual authorization | Two authorized signatories release the payment in the bank portal | Client signatories |
| Post-release reconciliation | Debit confirmed on bank statement and matched to the original request | Fundtec treasury analyst |
How the daily treasury cycle runs
Start-of-day balances
Opening balances are loaded from every bank, prime broker and FCM and reconciled to the prior day’s closing position.
Forecast and funding plan
Expected settlements, margin and investor flows are projected; funding moves and shortfalls are proposed to the client.
Margin and collateral
Incoming calls are validated against our own calculation; agreed calls are settled and disputes raised before the deadline.
Payment preparation and release
Wires are prepared, reviewed, called back where required and sent to client signatories for release.
End-of-day reconciliation
Every movement is matched to its source and the consolidated cash and collateral report is issued. See cash reconciliation.
What the consolidated cash and collateral view shows
- Balances by entity, account, custodian and currency
- Projected balances for the next settlement cycle
- Collateral posted and received by counterparty
- Open margin calls and disputes with deadlines
- Excess cash available for investment or sweep
- Payments pending approval and released today
- Financing and borrow charges verified or queried
Where treasury fits in a growing fund
Treasury is often the first function a founding team handles personally and the last one it lets go, because it feels like control. In practice, a documented maker-checker process run by a dedicated team is stronger control than a partner releasing wires from email. Investors and operational due diligence teams ask about it directly. For the wider picture, see scale your investment operations, and for cash break investigation see our reconciliation service.
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Treasury Operations
Didn’t find your question? Put it to a specialist directly.
Ask a specialistFrequently asked questions
Does Fundtec release payments or hold client cash?
No. Fundtec does not hold client money and does not act as a bank signatory. Our treasury team prepares, reviews and verifies each payment and sends it to the client’s authorized signatories, who release it in their own bank portal under dual authorization. Fundtec then reconciles the debit to the original request.
How do your wire controls protect against payment fraud?
Every payment follows maker-checker review against source documents. Any new or changed beneficiary is verified by a call-back to a known contact using details on file, never those in the request. Release requires two client signatories. Each step is logged, giving an audit trail that operational due diligence reviewers and auditors can test.
Can you manage margin calls and OTC collateral?
Yes. Fundtec checks initial and variation margin calls from futures commission merchants and prime brokers against our own calculation, and calculates OTC collateral calls under each credit support annex. Agreed calls are prepared for settlement before the deadline; differences are raised as disputes with the counterparty and tracked until agreed.
What is a consolidated cash view and why does it matter?
A consolidated cash view shows every balance a fund holds across banks, prime brokers and counterparties in one report, by entity and currency, with projected balances for the next settlement cycle. It lets the investment team see available cash and funding needs at a glance, instead of logging into several portals.
How do you verify financing and funding costs?
Fundtec recalculates prime broker financing, stock borrow fees and interest charges from balances and the agreed rates or spreads in the client’s terms. Differences are queried with the broker and tracked to credit or explanation. Small daily overcharges can compound across a year, so this check is run on a regular cadence.
Do you support capital calls and distributions for closed-ended funds?
Yes. For private equity, private credit and real estate funds, Fundtec matches incoming capital call cash to notices and investor records, chases late payments and reports shortfalls. For distributions, we prepare payments from the approved waterfall, verify investor bank details and reconcile each payment after release.
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Tell us how many accounts, brokers and counterparties you run. We will map a treasury process with the controls your investors expect.