Fund Accounting 101: What Is Fund Accounting?

F und accounting is a detail-oriented, deadline-driven role designed to streamline back-office administration for an investment fund so that fund management can concentrate on its core tasks of fundraising and the acquisition of portfolio assets. With the right fund accounting partner, an investment fund can rely on systematic day-to-day tracking of portfolio investments, their income, expenses and changes in value, cash flow in and out of the fund, management of investor needs and interaction with auditors and regulators. Fund accounting will produce ongoing reporting that monitors the vital statistics of the fund, supports investor information needs, aids the production of tax documents and simplifies audits and regulatory filings.

P hoenix American Financial Services, Inc. (“the Company”) is pleased to announce its new client partnership with RealBlocks. The Company will support RealBlocks with its advanced transfer agent system and industry leading investor services platform as well as fund accounting and reporting services. RealBlocks will benefit from Phoenix American’s combination of advanced technology, focus on customer service and long experience with the unique operational requirements of innovative offerings in the alternative investment fund industry.

P hoenix American Financial Services Inc. (Phoenix) announced today that the company has hired Tony Olivo as Vice President of Sales. Mr. Olivo will be responsible for implementing the company’s sales strategy, developing and maintaining an expanded client base for the fund accounting, investor services, back office outsourcing and technology solutions Phoenix provides to alternative investment funds.

T he benefits to investment funds of outsourced fund operations, including fund accounting, administration, tax services, sales reporting, investor phone support, web portal solutions, printing, fulfillment and compliance support, are many and varied. But here are 10 ways that third-party back office outsourcing simply benefits the bottom line:

P hoenix American Financial Services, Inc. (“Phoenix“) is pleased to announce its new client partnership with LaSalle Investment Management (“LaSalle”) to support their new 1031 platform of products. Phoenix will support LaSalle with its advanced proprietary transfer agent system, STAR-XMS, and industry leading investor services platform, which combines advanced technology, a focus on customer service and decades of experience with the unique operational requirements of real estate funds and 1031 exchange funds.

P hoenix American Financial Services and its wholly owned subsidiary PAFS Ireland, Ltd (collectively “Phoenix”) announced robust business and operational growth for 2019, building on a decades-long industry leading role as provider of managing agent services for asset-backed securitizations (ABS) in the commercial aviation and aircraft engine leasing industry. Phoenix has provided services for aviation ABS clients for over 20 years and has been a leading participant in the growth and maturation of the industry.

Phoenix American, a leading fund administration provider, is pleased to announce its new client partnership with Pennsylvania-based life settlement company Lighthouse Life Capital. Phoenix American will fulfill the back-office operational needs of Lighthouse Life with its industry-leading investor services platform featuring the state-of-the-art STAR-XMS shareholder management / transfer agent system.

Phoenix American Financial Services and its subsidiary PAFS Ireland, Ltd (“Phoenix American”) announced solid business and operational progress in 2020, building on the company’s nearly 25-year industry-leading role as provider of managing agent services for asset-backed securitizations (ABS) in the commercial aviation industry.

Distribution waterfalls, the method by which the capital gained by a fund is allocated between the limited partners (LPs) and the general partner (GP), is a critical consideration in setting up an investment fund. Simplicity is key. How investment returns are allotted to investors and management must be easy for investors to understand, practical for fund accounting to execute.

Phoenix American, a leading transfer agent and fund administrator for alternative investment sponsors, and Forge Trust, a leading provider of custody services for alternative investments, have announced a partnership to make it easier to invest in alternative assets for IRA account holders. Forge Trust provides custody services with preferred pricing and a streamlined integrated experience to clients of Phoenix American.

Phoenix American, as part of its mission as a leader in innovation and efficiency for alternative investments, engages with the industry on an ongoing basis. The company participates in conferences, webinars and roundtables to keep current on emerging trends, educate colleagues on back-office issues and collaborate with industry partners to help drive the industry forward.

Sandy Bay Partners is the sponsor of investment programs focused on private equity and real estate development that are environmentally, socially and economically impactful. Working with the best in class landowner, legal and industry partners, Sandy Bay brings professional real estate and sponsor guidance to the surface and subsurface development industry.

Phoenix American is pleased to announce its new client partnership with real estate investment management firm Bonaventure. Phoenix American will support Bonaventure with its industry-leading investor services platform featuring the STAR-XMS shareholder management / transfer agent system as well as integrated fund accounting services.

My name is James Beard, and I am an undergraduate student attending Chapman University pursuing a degree in Business Administration with an emphasis in Real Estate. As an intern for Phoenix American Financial Services, I am conducting market research pertaining to alternative assets in real estate. As a fund administrator for alternative investment funds including DSTs,

Transparency and responsiveness with investors and advisors promote loyalty and enhance the credibility of your brand. Web portal, email, phone and mail communications are all centralized and tracked in the STAR-XMS system, giving investors the information they need to manage their finances, file their taxes and decide to invest in your next fund. Management of investor questions and concerns eliminates a major distraction from your team’s focus on investments and sales.

Decades of specialized experience with alternative investment funds combined with industry-leading technology and white glove customer service. We provide fund administration for funds of any scale or structure, AUM or investor count. Phoenix American achieves an unparalleled level of back-office efficiency. Read more on https://bit.ly/3eyeLao

STAR-XMS (Syndication Tracking and Reporting with Expanded Marketing and Sales Capabilities) is our proprietary investor recordkeeping system for outsourced fund administration services. The system is also available under license to self-administered funds to reduce their costs and maximize back-office efficiency.

The Biden Administration is not the first to attempt to limit 1031 exchanges. Donald Trump’s Tax Cuts and Jobs Act ended personal property exchanges back in 2017, so currently like-kind exchanges apply exclusively to commercial real estate. The new administration argues Section 1031 of the IRC only benefits the wealthy and wants to get rid of the provision Donald Trump and thousands of other real estate investors have utilized for decades.

T he benefits to investment funds of outsourced fund operations, including fund accounting, administration, tax services, sales reporting, investor phone support, web portal, printing, fulfillment and compliance support, are many and varied. But here are 10 ways that third-party back office outsourcing simply benefits the bottom line:

Phoenix American, a leading transfer agent and fund administration provider for alternative investments and the Founder Institute, a global startup accelerator, have announced a partnership to provide fund administration, investor services and fund accounting for graduates of Founder Institute’s VC Lab program. The partnership will enable program alumni to benefit from institutional-class back office infrastructure.

Simply put, fund Administration is the outsourced performance by a third party of back-office functions for an investment fund. In terms of the investment portfolio (the asset side), fund administration involves accounting, tracking and reporting transactions and values for the portfolio as a whole and, if necessary, for the portfolio assets individually.

Our latest white paper examines the initial impacts of the COVID-19 pandemic crisis on commercial real estate across the United States. CRE & COVID-19 Winners, Losers & the Road Ahead, A Trends Outlook Report analyzes the effects on commercial real estate of the first three months of the pandemic crisis and the outlook for the rest of 2020 and beyond.

In the last 100 years, 1031 exchanges are responsible for creating a ton of revenue, jobs, investments, and economic benefit to the nation. During his campaign, Biden stated he “wanted to completely end the 1031 exchange tax break.” While this is unlikely, it remains unclear as to how the $500,000 limit is being imposed. Biden also proposed raising the long-term capital gains tax rate up to 39.6% for those earning over $1 million a year.

Phoenix American Financial Services and its wholly owned subsidiary PAFS Ireland, Ltd (collectively “Phoenix”) announce today that John McInerney, Managing Director of PAFS Ireland, Ltd, has been honored with the Future Leader Award by Airline Economics magazine. Annually, Airline Economics recognizes emerging talent in the aviation industry with its 40 Under 40 list of outstanding professionals, nominated by their peers, who are under forty years of age.

T he benefits to investment funds of outsourced fund operations, including fund accounting, administration, tax services, sales reporting, investor phone support, web portal, printing, fulfillment and compliance support, are many and varied. But here are 10 ways that third-party back office outsourcing simply benefits the bottom line: