Use case · Fund accounting
Fund accounting services: your books, NAV and financial statements, run by one team
Fundtec provides outsourced fund accounting for privately offered funds, their managers and the administrators that serve them, on our proprietary platform, Tychi, or on your own systems.
In one minute
Fund accounting is the recording of a fund’s trades, cash, income and expenses in a double-entry general ledger, the valuation of its portfolio and the calculation of its net asset value and fees. Fundtec provides outsourced fund accounting services for hedge, private equity, venture, credit, real estate and digital asset funds, with ISO 27001-certified controls and 24/5 coverage.
Managers at a decision point: a fund to launch, an administrator to change, or an operating model that has to scale.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
What is fund accounting?
Fund accounting keeps the books of an investment fund. Every trade, cash movement, income item and expense is recorded in a general ledger built on a chart of accounts for the fund. The portfolio is valued under the fund’s valuation policy, accruals and fees are calculated, and the result is the NAV and, at year end, the financial statements.
Fund accounting is the core of fund administration but not the whole of it. Administration adds investor onboarding, the investor register, transfer agency and regulatory filings. Some funds buy both from one firm; see our fund administration services. Others, and many administrators, buy fund accounting on its own.
What do fund accounting services include?
| Area | What is included | Output |
|---|---|---|
| Ledger and chart of accounts | A double-entry general ledger and chart of accounts built for the fund’s structure | Trial balance by fund, class and entity |
| Trade and cash booking | Trades, corporate actions, cash movements and expenses booked from source data | A complete, reviewed record each period |
| Reconciliation | Cash, position and trade reconciliation against every bank, broker and custodian | Break reports with causes and owners |
| Pricing and valuation | Prices under the fund’s pricing hierarchy, with stale-price and tolerance checks; see valuations and pricing | A priced portfolio with exceptions explained |
| Income and expense accruals | Interest, dividends, financing, borrow costs and fund expenses | Accrual schedules tied to the ledger |
| Fee calculations | Management fees, performance fees, high-water marks and equalization | Fee workings by class, series or investor |
| Investor allocations | Capital accounts and series accounting as the documents require | Allocations that tie to the NAV |
| NAV pack | Trial balance, P&L, reconciliations, pricing exceptions and fee workings, reviewed under the four-eyes principle | A NAV pack ready for sign-off |
| Financial statements and audit | Annual financial statements and audit support | Statements and an audit pack |
Fund accounting by strategy
| Strategy | What the accounting emphasizes |
|---|---|
| Hedge funds | Daily P&L, multi-prime reconciliation, series accounting, equalization and performance fees |
| Private equity | Capital calls, waterfalls, carried interest and fair value marks |
| Venture capital | SAFEs, convertible notes, cap tables and SPVs |
| Private credit | Loan-level accruals, PIK interest and fee amortization |
| Real estate | Property-level ledgers consolidated to the fund, with JV waterfalls |
| Digital assets | Exchange and wallet reconciliation, fixed pricing cut-offs and staking income |
Fund accounting vs fund administration
| Area | Fund accounting | Fund administration |
|---|---|---|
| Books, NAV and fees | Yes | Yes |
| Reconciliation and pricing | Yes | Yes |
| Financial statements and audit support | Yes | Yes |
| Investor onboarding, KYC and AML | No | Yes |
| Investor register and transfer agency | No | Yes |
| Regulatory filings such as FATCA and CRS | Data only | Yes |
Who we provide fund accounting services for
- 01
Fund managers
Managers that want accounting and NAV outsourced while keeping investor services elsewhere, or alongside our fund administration.
- 02
Fund administrators
Administrators that add capacity through co-sourcing: our team works on your platform under your controls. See services for fund administrators.
- 03
Family offices
Consolidated accounting across entities, holdings and advisers. See family office services.
- 04
Managers who want a second set of books
An independent ledger kept in parallel with the administrator through shadow accounting.
How outsourcing fund accounting works
Scope
We review fund documents, structure, counterparties and reporting, and agree scope, cadence and fees.
Set-up
The chart of accounts, classes, fee schedules and pricing sources are set up in Tychi or on your systems.
Data connections
Feeds or files from brokers, custodians and banks are connected and tested.
Opening balances
Opening positions, cash and capital are loaded and tied out to the last audited or approved figures.
First NAV
The first cycle runs with extra review, and workings are walked through with you before the period is locked.
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 Outsource Fund Accounting
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Ask a specialistFrequently asked questions
What is fund accounting?
Fund accounting is the bookkeeping and valuation of an investment fund. It records every trade, cash movement, income item and expense in a double-entry general ledger, values the portfolio, calculates fees and produces the NAV and annual financial statements. It differs from company accounting because it tracks each investor’s share of the fund through classes, series or capital accounts.
What do fund accounting companies do?
Fund accounting companies keep a fund’s books for its manager or administrator. They book trades and cash, reconcile to banks, brokers and custodians, price the portfolio, calculate management and performance fees and produce the NAV pack and financial statements. Fundtec provides these services for privately offered hedge, private equity, venture, credit, real estate and digital asset funds.
What is the difference between fund accounting and fund administration?
Fund accounting covers the books, valuation, fees, NAV and financial statements. Fund administration includes all of that plus investor onboarding, KYC and AML checks, the investor register, transfer agency and regulatory filings. A manager can buy fund accounting on its own, for example to keep investor services with another provider, or buy full administration from one firm.
Can Fundtec provide fund accounting on our own systems?
Yes. Most clients use our proprietary platform, Tychi, but our team can also work inside your accounting and portfolio systems through client-controlled access with a full audit trail. Fund administrators often use this co-sourcing model to add capacity without moving data out of their own environment.
Which fund accounting solution does Fundtec use?
Fundtec runs fund accounting on its own platform, Tychi, which keeps the ledger, reconciliations, fee calculations and NAV on one set of books, with AI that matches and flags items for review. Because the platform is ours, no per-seat licence cost is passed to clients. Where a client prefers, we work on its existing systems instead.
How much do outsourced fund accounting services cost?
Outsourced fund accounting is usually priced in basis points on assets with an annual minimum, or as a fixed fee per fund for smaller vehicles. NAV frequency, number of counterparties, share classes and instruments drive the fee. Fundtec quotes after reviewing your fund documents. Our article on fund administration cost explains common pricing models.
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Read more →Get a fund accounting proposal
Send us your fund documents and current set-up. We will confirm scope, cadence and fees, and show you a sample NAV pack.