Introduction: Outsourced Hedge Fund CFO Services

Introduction

Tapestry Fund Services provides high-touch outsourced CFO services to emerging or established managers of hedge funds. Our deep experience with accounting and operations in all phases of a hedge fund lifecycle allows us to better understand and assist with the needs of our clients. For new managers, our services have become a popular and acceptable option that provides all the same benefits at a fraction of the cost and without the added burden of hiring any day one employees. For existing managers, our services can be utilized for interim support, fund wind down, special projects, or operational redundancy.

STARTUPS: MUTUAL SUCCESS IS OUR GOAL

We want each manager to make informed decisions about launching a fund and not simply take them on as a new client to generate fees. We perform an initial consultation with each manager to review their prior experience, investment strategy, and track record. Certain criteria are necessary to launch and there may be other options available outside of launching your own fund. We work with each manager to develop and fine-tune the pitchbook and other marketing materials. Developing a pitch with a clear and consistent message is a critical first step that needs to be rehearsed and perfected. We assist with developing a budget friendly plan. We understand thttps://img1.wsimg.com/isteam/ip/15e03af5-7b98-4a64-8775-efb1a40b1e6f/Screenshot%202022-04-03%20130846.png/:/cr=t:0%25,l:5.61%25,w:88.78%25,h:100%25/rs=w:1462,h:731,cg:truehat not all managers are ready to install a fully automated end-to-end middle and back-office system. We will do our best to offer a flexible solution that works for both of us until you’ve reached scale.

THE PRE-LAUNCH PHASE

We will execute a detailed strategy to ensure a successful launch, so you can focus on delivering your pitch to prospective investors.

• Entity formation for funds and management co.

•Reviewing offering documents and agreements

•Create budget and breakeven analysis

•Due diligence and service provider selection

•Plan and develop operations for trade lifecycle

•Brokerage and bank account openings

•Prepare applicable regulatory filings and registrations

Hedge fund services

Hedge Fund Management Company and General Partner Accounting

•Generate books and records utilizing Quickbooks
•Full financial statement preparation on a monthly basis(Balance Sheet, Income Statement, Cash Flows and General Ledger)
•Electronic Billing and Invoice Payment (utilizing proper internal controls for cash)
•Budgeting and breakeven analysis
•Preparation of year end books for tax preparation by CPA firm
•Maintain and setup payroll and recordkeeping with Professional Employment Organization(PEO)
•Bank and Credit card reconciliations
•Aid in selection of FINRA compliant IT infrastructure
•Employment Contracts

•Determination of research expenses covered by management company that fall outside of 28e and fund parameters

•Billing of management fee income to funds and/or managed accounts

•1099 preparation at year end for vendors and contractors

•Employee expense reimbursement controls

•Work with attorney to comply with State and Federal regulatory agencies

•Setup internal controls for cash and security

•Review side letters and investment management agreements

•Perform exempt reporting advisor compliance

Hedge Fund Shadow Books and Records

•Create shadow book allocations to administrator

•Review Daily NAV prepared by administrators

•Review of pricing and valuation with Portfolio Manager on a daily and monthly basis

•Daily review of positions at administrator and Order Management System

•Calculation of Daily, MTD and YTD performance

•Monthly administrator NAV review

•Resolve morning trade breaks with trade counter parties

•Send estimated return to investors within 2 business days after month end

•Aid auditors in performing walkthroughs and interim testing

•Coordinate audit of administrator prepared financial statements and respond to all audit inquiries of the fund manager

•Coordinate subscriptions and redemptions with administrator

•1099 preparation at year end for vendors and contractors

•Work with attorney to comply with State and Federal regulatory agencies

•Work with manager to create daily, monthly, quarterly and yearly report packages

Compliance: Exempt Reporting Advisors

•Aid attorney in drafting Exempt Reporting Advisor compliance manual

•Year –end Form ADV Part 1A completion

•Policies regarding trade allocation and aggregation

•ETF, Mutual Fund and Registered Investment Company Investment monitoring

•AML Policy and Procedures

•Class Action Policy

•Rule 105 Reg M

•Rule 203(b)(1)

•Best Execution Policy and Review

•Soft Dollar Compliance and controls

•Cross Transactions

•Trade Errors and Operational Errors Policy

•Portfolio Valuation Policy

•Insider Trading, MNPI and Restricted Lists

•Code of Ethics

•Personal Trading Policies

•Gifts and Entertainment

•Conflicts of Interest

•Cybersecurity

•Business Continuity and Disaster Recovery

•Electronic Communications Policy

•Annual Certification

Hedge Fund Marketing Support*

•Assist with investor outreach

•Aid manager in special attribution requests from potential and current investors

•Distribute returns and communications to various investor lists (Current and Potential Investors)

•Assist in completion of DDQs

•Coordination of subscriptions and redemptions

•Update online hedge fund directories and databases when NAV is finalized

* We DO NOT

-Receive commissions or other transaction-based compensation for marketing support

-Provide advice to investors on the potential investment in the private fund

-Engage in negotiations on behalf of a fund concerning the potential investment