The challenges facing fund-of-fund managers
Here are just some of the ways our fund administration and accounting software can help you scale:
A full event-based partnership accounting system, supporting lot-level multi-currency, multi-ledger charts of accounts.
Real-time full FoF structure transactional processing with full look-through.
Automate reporting to investors or investment committee using our custom report writer.
High performant, user-friendly integrated portal for secure communication of any documents.
Unlimited flexibility to automate any complex calculations.
Equity, credit, real estate, infrastructure, cash.
Reflect the closed, open, or hybrid entities of your underlying managers all in one system.
All actions, including for Excel brought inside the system, all fully audited then time-stamped.
Locally deployed cloud infrastructure.
In 45 minutes, we'll show a brighter future.
Ease of multi-fund management
LemonEdge is designed to handle the complex, and we've made it simpler and faster to manage numerous funds in a single place.
The additional levels of management between the investor and underlying portfolio companies, comes with an increased challenge of reporting. Often reporting can be completed at an individual fund level, however, mapping the funds together for seamless, non-manual FoF reporting even with an existing fund accounting system can be challenging.
The same path allocation system, which automates the LemonEdge accounting transactions all the way through the fund and fund families is utilised for the look-through FoF reporting. Giving you the ability to have look-through reporting for an investor in multiple of your funds, or in several underlying fund families where there is ownership of a shared investment, as just one example.
One of the primary challenges for FoF managers is handling the cashflow processes associated with the commitments, closes, drawdowns, then distributions of the underlying funds in their portfolios.
LemonEdge has a unique path allocation system which can link any entities together, including funds or fund families, with the same logic you use manually today. We therefore empower FoF firms to manage structures of any complexity, with multiple transactions of any type, so there’s no need for external solutions to address the idiosyncrasies of underlying fund managers, or the differences in asset classes, or the scheduling of cashflow events. You can enter a business transaction and instantly see it flow through the entire structure, including the ledgers at each entity level or the fund as a whole.
Excel is often used either as the sole accounting tool, or to supplement the lack of capability in existing fund accounting solutions. Examples range from offline calculations for subsequent closes, complex management fees, carry process, or proving out black-box calculations.
Our proprietary spreadsheet solution, LemonEdge Algorithms, eliminates the need to create these high-risk offline Excel processes, so can ensure all your cashflows and calculations are managed within your accounting solution. You now have the permissions, structures, sign-offs, audit history and automation of the history of the posting of your transactions, secured – all without a black-box approach.
With Algorithms then legacy Excel workarounds that were needed to reflect non-standard or inconsistent calculations associated with underlying fund managers or asset classes, can all be done in LemonEdge.
LemonEdge allows you to take multiple copies of your entire live system instantly using our innovative, intuitive, Canvas technology. For Fund of funds managers this means you can model the impact of FX changes, or investment/disinvestment decisions and therefore manage the liquidity challenges inherent in the illiquid world of private capital markets, in particular the impact of timings of the drawdown/distribution processes of your underlying funds/managers. Canvases can also be used as a secure environment for training, workflow management or data ingestion before committing to changes.
Executive Director, Fund Administration & Operations
We’re quickly building an eco-system of related technology partnerships, enabling our clients to easily connect their existing data sources to LemonEdge.
A proven alternative to legacy systems
Guillaume de Malliard, COO and Partner at Astorg Group
LemonEdge selected by Sycamore Partners as their Private Equity Technology Platform
LemonEdge appointed by Fairway as their front-to-back office Funds system
Book a demo to see it for yourself.