Hedge Fund Accounting: Investors Allocation Accounting for Hedge Funds 2 CPE

This course offers an overview of Hedge fund structures, and Income allocation to Fund’s Investors. We will touch upon basic concepts of type of funds, investors, share classes, capital activities, fees structures and step by step approach to process Economic Distribution of Income.

Topics Covered

• Fund Structures: Stand Alone, Master-Feeders
• Partnership funds vs Unitized Funds
• Type of Investors
• Share Class
• Capital Activities
• Ownership Percentage
• Income allocation process
• New Issue Income allocation
• Fees Structures
• Management Fees
• Performance Fees
• Highwater Mark
• Hurdle Rates
• Side pocket investments
• Series roll up
• Audit Holdback

Prerequisites

Learning Objective

• Explore the definition and broad structure of a Hedge Fund as an investment vehicle.
• Recognize fundamentals of funds set up as different legal entity types.
• Explore concept of ECDI and steps involved in Income allocation to investors.
• Recognize key elements of fees charged to investors.
• Recognize impact of capital activities on ownership percentages.
• Recognize concept of side pocket investments.

Last updated/reviewed: March 13, 2024