Independent NAV verification, cash flow reconciliation and ongoing manager monitoring. Catch administrator errors and timing differences before they become trustee issues. Built for fund of funds, family offices and institutional allocators.
Shadow Accounting & Monitoring
Independent verification for multi-manager books
The problem
Administrator pricing dispute. Manager statements arrive in three currencies. Every quarter starts with reconciling spreadsheets.
Independent NAV
Parallel calculation · reconcile to admin
Cash flow reconciliation
Capital calls · distributions · fees
Monitoring & alerts
Style drift · factor exposures · drawdowns
Everything fund of funds, family offices and institutional allocators need to maintain a defensible parallel book.
Calculate fund-of-funds NAVs independently from underlying-manager statements. Reconcile against the administrator. Surface discrepancies for investigation.
Capital calls, distributions, redemptions, fees — all reconciled across managers, custodians and the administrator. Catch timing errors and pricing differences.
Factor exposures, drawdowns, peer rankings tracked monthly for every manager. Style drift alerts. Performance attribution. All in one place.
When the portfolio is down, who contributed? Decompose drawdowns by manager, by factor, by sector. Defensible answers for the IC and trustees.
Every calculation timestamped and source-attributed. Reproducible months or years later for trustee scrutiny or regulatory inquiry.
A single consistent view of the consolidated portfolio across managers with different reporting conventions, currencies and fee structures.
Why fund of funds and family offices maintain shadow books — and what happens when they don’t.
Shadow accounting is the parallel calculation of fund NAVs, performance and cash flows independent of the fund administrator. It serves as a control: the administrator's NAV is verified against an independent calculation, with discrepancies investigated. For fund of funds and family offices holding many manager positions, shadow accounting is essential governance.
Three reasons: (1) Independent control — catching administrator errors, timing differences and pricing issues before they hit the IC or trustees; (2) Look-through transparency — building a single consistent view across managers with different reporting frequencies and conventions; (3) Cash flow visibility — knowing exactly when capital calls, distributions and redemptions will land at the consolidated portfolio level.
No — fund administrators serve a regulatory function and are required. AlternativeSoft sits alongside the administrator as an independent verification and analytics layer. We reconcile to the administrator's NAV and surface discrepancies for investigation.
Yes. Different hedge funds report on different calendars (monthly, quarterly), in different currencies, with different fee structures and side-pockets. The platform normalises everything into a consistent shadow book.
Yes — family offices with 20+ underlying managers across asset classes need shadow accounting to maintain a defensible, IC-ready view of their consolidated portfolio. Without it, every quarterly review starts with reconciling spreadsheets.
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