The Hedge Fund Family Tree -- Visualizing Master/Feeder Structures

TKS Solutions introduces a new software utility that charts the relationship of master feeders and fund of funds on the fly – ensuring more accurate fund accounting.

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Penny's one click master/feeder org charts make a process that used to take a great deal of staff time a one second endeavor”.

Mount Kisco, NY (PRWEB) September 14, 2010

One of the things that makes hedge fund partner and shareholder accounting so complex is the labyrinthian relationships that can exist across master feeders and fund of funds.

It is not uncommon for one fund to have scores of other funds which invest in it, and for each of those funds to invest in some, or all of the other funds in the group. When trying to accurately allocate returns, fees and tax obligations across these funds, a picture can truly be worth a thousand words.

That’s why Penny – It Works® has introduced a graphical depiction of the hierarchy of funds. This new feature creates on-the-fly “organizational charts” of fund structures, providing a visual mapping of even the most complex master/feeder relationships.

Having a visual model to follow provides a great tool at the fund set-up stage to ensure that management and performance fees are appropriately allocated to all investing entities. And the new Fund Structure Diagram can be invoked at any time with one click – offering a helpful overview to those entering investor and fund data, or auditing or performing due diligence on a fund.

Penny – it Works® users just choose a fund and specify the chart effective date, then the system dynamically analyzes all of the investors of that fund, looking for any investors acting as a proxy for a feeder fund. Next, the system investigates that feeder fund looking for any of its investors that are proxies, and so on. Users can zoom in and out on the diagram to inspect various fund structures and trees, flip the diagram (to show feeders at the top and the master at the bottom), and print out the chart.

Ron Kashden, President of TKS Solutions, explains “one of the hardest things I wrestled with when I was CFO of a hedge fund was maintaining master/feeder org. charts over multiple points of time – so that we could furnish current and potential investors with an accurate depiction of fund cross-dependencies. With Penny, we’ve made a process that used to take a great deal of staff time a one click, one second endeavor”.

The fund structure visualization further strengthens Penny’s robust master /feeder functionality. The system can pass through investment results onto an unlimited level of feeders and even automatically credit management companies with the system-calculated fees. With the help of Penny, organizations are converting from convoluted spreadsheets to a reliable, accurate partner and shareholder accounting workflow.

About TKS Solutions

TKS Solutions offers unified partnership and shareholder accounting solutions for the financial industry. Its flagship software, Penny – It Works® , helps firm better manage their investment partnerships and funds by providing automated and instant access to detailed investor data. Penny’s open architecture and proven features easily integrate with portfolio accounting and customer relationship management systems, data warehouses and in-house proprietary solutions, creating a comprehensive and unified view of all investor data, as well as greater transparency for investors. TKS Solutions works with partners worldwide to serve its customer base of leading hedge funds, fund of funds, private equity firms, administrators and management companies, ranging from $50 million up to $60 billion under management. For more information, please visit http://www.PennyItWorks.com.

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