Hedge fund services
Hedge Fund Management Company and General Partner Accounting
Tapestry Fund Services provides comprehensive back-office accounting and operational support for hedge fund management companies and general partners. Our solutions are designed to meet institutional standards while remaining cost-effective for emerging managers.
Our services include:
- Books & Records Maintenance
• Full accounting using QuickBooks or preferred platforms
• Monthly GAAP-compliant financial statements: Balance Sheet, Income Statement, Cash Flow, and General Ledger
• Bank and credit card reconciliations
• Electronic billing and invoice payment with internal cash controls
- Budgeting, Forecasting & Analysis
• Budget creation and breakeven analysis
• Monitoring of firm-level cash flow and expense trends
• Management fee billing and revenue tracking from funds and managed accounts
- Payroll & HR Support
• Payroll setup and administration via Professional Employer Organizations (PEOs)
• Employee expense reimbursement policies and controls
• Preparation of year-end 1099s for vendors and contractors
• Employment contract review and recordkeeping
- Year-End Tax Preparation Support
• Preparation of year-end books for CPA tax filing
• Coordination with tax advisors for partner allocations and filings
- Regulatory & Compliance Assistance
• Exempt Reporting Adviser (ERA) compliance support
• Side letter and investment management agreement review
• Collaboration with legal counsel to meet state and federal requirements
• Setup of internal controls for cash and securities
- Operational Infrastructure Advisory
• Support in selecting FINRA-compliant IT infrastructure
• Analysis of research expenses to determine proper allocation outside of Section 28(e) safe harbor
Hedge Fund Shadow Books and Records
Tapestry Fund Services delivers comprehensive middle- and back-office operational support to ensure accuracy, timeliness, and transparency across all fund activities. We partner with managers to streamline processes, strengthen controls, and enhance investor confidence.
Our services include:
- Daily and Monthly Oversight
• Create shadow books and allocations to reconcile with fund administrator records
• Review daily NAVs prepared by the fund administrator
• Conduct daily and monthly pricing and valuation reviews with the Portfolio Manager
• Monitor and reconcile positions across the administrator and Order Management System (OMS)
• Calculate and track daily, month-to-date (MTD), and year-to-date (YTD) performance
• Identify and resolve trade breaks with counterparties promptly each morning
- Net Asset Value (NAV) Assurance
• Perform monthly NAV reviews and reconciliations with the fund administrator
• Coordinate with administrators on subscriptions and redemptions
• Send monthly estimated performance reports to investors within two business days of month-end
- Audit and Financial Statement Coordination
• Liaise with fund auditors during interim walkthroughs and annual audits
• Respond to auditor inquiries and coordinate the audit of administrator-prepared financial statements
• Assist in preparing supporting documentation and schedules as required
- Regulatory and Reporting Support
• Collaborate with legal counsel to maintain compliance with state and federal regulations
• Prepare 1099s for vendors and contractors at year-end
• Work closely with the manager to develop and distribute daily, monthly, quarterly, and annual reporting packages
Compliance: Exempt Reporting Advisors
Tapestry Fund Services offers tailored compliance solutions to support hedge fund managers operating as Exempt Reporting Advisers (ERAs). We work closely with fund counsel to implement practical, regulator-ready compliance frameworks that meet the expectations of institutional investors and regulators alike.
Our Compliance Services include:
- Regulatory Program Development
• Assist legal counsel in drafting and implementing Exempt Reporting Adviser (ERA) compliance manuals
• Complete and file Form ADV Part 1A annually
• Establish and document policies for trade allocation and aggregation
- Investment Monitoring & Restrictions
• Monitor investments in ETFs, mutual funds, and other registered investment companies
• Implement policies to ensure compliance with Rule 105 of Regulation M and Rule 203(b)(1) under the Advisers Act
• Oversee cross transactions and ensure adherence to fiduciary standards
- Policy Frameworks and Internal Controls
• Anti-Money Laundering (AML) Policy and Procedures
• Class Action Participation Policy
• Best Execution Policy and periodic review process
• Soft Dollar Policy and oversight of research arrangements
• Trade Error and Operational Error Policies
• Insider Trading and MNPI controls, including maintenance of Restricted Lists
• Portfolio Valuation Policy tailored to liquid and illiquid holdings
- Code of Ethics & Employee Conduct
• Development and enforcement of a comprehensive Code of Ethics
• Personal trading policy and pre-clearance processes
• Gifts and entertainment policies and tracking
• Conflicts of interest identification, mitigation, and documentation
- Technology, Resilience & Communication
• Cybersecurity Policy and incident response protocols
• Business Continuity and Disaster Recovery Plans
• Electronic Communications Policy including email, messaging, and social media
- Ongoing Oversight & Certification
• Annual employee certification and policy acknowledgment processes
• Periodic compliance reviews and documentation support
• Coordination with fund counsel and service providers to ensure alignment with evolving regulatory standards
Governance Framework Services
Tapestry Fund Services offers comprehensive Governance Framework solutions tailored to the needs of emerging and institutional fund managers. Our team designs and implements robust structures to promote oversight, accountability, and best practices across your fund and management company.
Our Governance Framework Services include:
- Committee Formation & Charters
• Investment Committee
• Valuation Committee
• Compliance Committee
• Operations Committee
• Risk and Liquidity Oversight Committee (optional)
- Governance Documentation
• Drafting and implementation of committee charters
• Governance policies and procedures
• Succession planning frameworks
• Key Person contingency protocols
Hedge Fund Marketing Support*
Tapestry Fund Services provides operational and administrative support to fund managers in their investor relations and marketing efforts. We help managers stay organized, responsive, and professional in their communications with both prospective and existing investors—while ensuring compliance with applicable regulatory boundaries.
Our Investor Relations Support Services include:
- Investor Communication & Outreach
• Assist in investor outreach efforts under manager direction
• Coordinate and distribute performance reports, investor letters, and fund updates
• Maintain segmented investor distribution lists (prospective and current)
• Support manager in responding to special attribution or data requests from investors
- Subscription & Redemption Coordination
• Assist with onboarding new investors and processing redemption requests
• Coordinate with administrators and legal counsel to ensure documentation and compliance
• Maintain tracking and communication for capital activity timelines
- Due Diligence & Data Room Support
• Assist in the completion of investor Due Diligence Questionnaires (DDQs)
• Maintain and update online hedge fund databases and directories with finalized NAVs and key metrics
Important Disclosures:
Tapestry Fund Services operates in a non-broker-dealer capacity and does not:
- Receive commissions or any transaction-based compensation related to fundraising or marketing
- Provide investment advice or solicit investments from potential or existing investors
- Engage in negotiations with investors on behalf of the fund or its manager