HYBRID FUND SERVICES As the alternative investment industry continues to evolve in response to the changing market conditions, investment managers have had to reinvent themselves to more closely align structure with strategy. By way of example: (i) Hedge fund managers are utilizing close-ended fund structures to manage investor liquidity in liquid trading strategies and; (ii) Traditional private equity and real estate managers have had to expand their product offering across a variety of return profiles to accommodate investor risk requirements. The investment vehicles of choice, the so-called “hybrid funds”, are becoming an increasingly prevalent phenomena in the alternatives sector. With characteristics that directly address the investor/investment liquidity mismatch by taking advantage of longer capital lock-ups, modified high-watermark and complex waterfalls, tiered management fee arrangements, investor friendly investment structures and investments in both liquid and illiquid securities and products, managers are creating structures that are increasing the operational and administrative burden associated with operating a fund. For more than 30 years, Citco has offered high quality administration services to alternative investment firms globally. Drawing on Citco’s industry leading technology platforms vast expertise with the traditional hedge fund, private equity and real estate administration platforms, Citco has developed an outstanding range of hybrid fund administration services for GPs, LPs and SPVs. These services include Fund Accounting and Administration, Investor Relations, Tax, Financial and Regulatory Reporting and SPV Administration Services, all provided on a global scale and managed through a single point of contact. Front Office Middle Office • Real-time trade processing • Post execution trade capture • Daily position, P&L and activity reporting • Global security master • Position monitoring • Unique OTC client security master • Trade and position break reporting • Daily cash, position, proceeds and trade • Independent monthly valuation/ verification of portfolio • Daily corporate action processing • Daily pricing for comprehensive listed prices Fund Accounting • Maintenance of official books and records • • • • of the fund Post non-trade activity Computation of fees and accruals (including management fees and expenses) Waterfall modeling and calculation Processing capital transactions including capital calls, distributions, rebalances, transfers, etc. reconciliation to prime brokers/ banks/ custodians/ counterparties • Loading of client private and derivative prices • Collateral management and treasury services • Provide accounting related reports to • • • • investment manager (e.g. financial statements, schedule of investments) Investor capital account maintenance and reporting Calculation of net asset value Performance metrics at legal entity and investor levels (e.g. IRR, ROR) Ensure compliance with fund’s legal documents Investor Relations Services Tax, Financial and Regulatory Services • Reporting services including preparation • Maintain all investor records • Communication services with investors and Fund’s third parties, including investor due diligence questionnaires • Customized investor reporting and direct response to customer queries • Investor documentation review and dissemination of partner capital statements, capital call and distribution notification, new letters, etc. • Investor identity verification in accordance with KYC & AML procedures • Online reporting for managers and investors • Establish and maintain tax capital accounts • Audit coordination and support • Prepare federal, state, local and other • Regulatory reporting including Form PF • Establish domiciliation for holding, • Provide personal/ corporate resident required tax forms • Prepare schedule K-1’s • Tax planning assistance for future products • Financial Statement preparation SPV Administration Services company management, company advisory entities and carry vehicles • Multi-jurisdictional entity & portfolio governance • Open & operate bank accounts • Provide domicile/registered address and AIFMD • Interact with independent accounting, tax advisors • FATCA services • • • • directors Company secretarial services Ensure companies meet local regulatory requirements Tax reporting assistance Accounting, including preparation of financial statements and consolidations CONTACTS USA Jeffrey Rosen Email: jerosen@citco.com Phone: +1 201 793 5572 Michael Peterson Email: mpeterson@citco.com Phone: +1 201 793 5674 Europe Oliver Scully Email: oscully@citco.com Phone: +44 207 290 1369 Asia Niall Fagan Email: nfagan@citco.com Phone: +65 6571 1702 Citco provides Hybrid Services globally from 45 offices including Amsterdam, Cayman Islands, Dublin, Guernsey, Hong Kong, London, Luxembourg, Mauritius, New York, San Francisco, Singapore and Sydney www.citco.com