Fund of Funds
This particular client had a number of internal and external reporting requirements that did not fit the typical fund administration model. In addition, unique systems for portfolio accounting and investor services were used internally by the investment manager which had to be integrated with the books and records held at the fund administrator. Some complexities surrounding the fund’s structure, specifically the use of lower-level entities beneath the fund, meant that a detailed workflow needed to be created to adequately service the portfolio.
For this client, their internal and external requirements were such that MUFG designed a completely customized solution, ranging from portfolio accounting to stakeholder reporting. First, MUFG customized their own technology platform to feed directly into the client’s internal systems, streamlining a burdensome operational process and decreasing the direct financial cost of the client’s internal operations.
Also, given that the client makes heavy use of special purpose vehicles (SPV’s) and, in order to craft the reporting outputs that were required by the investment manager, MUFG enhanced their internal systems through IT development to handle these heightened requirements. The result was a full suite of bespoke reports, each specifically designed to meet a unique need that the client had, either for themselves or an interested party outside of the organization.
Finally, MUFG developed customized reporting to meet the investment manager’s external compliance needs. In this case, MUFG provided these reports directly to the concerned parties, further promoting the openness and independence of the client’s business model while decreasing the headcount requirements of the investment manager.
MUFG’s solution created a seamlessly integrated, front to back alternative investment platform for the client. Their internal reporting requirements were met and the external parties with whom the client dealt, including investors, were able to see a truly institutional-grade platform based on transparency and accuracy. Perhaps most significantly, in a time of rising costs, the investment manager was able to control and, ultimately, reduce the size of their organization, creating a stable, cost-effective business model that is well-situated for future growth.