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What the fund administrator does and what your controller still owns
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Financial Headhunters: How will your internal controller verify data from your fund administrator to check capital requests and management fees?
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- Assistant Controller
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- Internal Audit Director
- Senior Accountant
- Financial Analyst
- Head of Financial Reporting
- Commercial Lender
- Chief Credit Officer
- Business Systems Finance Lead
01
Division of tasks
Fund administrators handle day to day transaction processing. They generate the NAV packages and track capital calls. They handle investor notices. Your internal controller maintains oversight and ownership of the final output. The controller confirms the accuracy of the administrator reports.
Your controller handles management company finance. This covers payroll and firm overhead. This internal role manages audit relationships and tax return preparation. The controller reconciles data between the fund administrator and internal firm records.
Walk me through a specific instance where an administrator provided an incorrect NAV package. Ask how they spotted the error and the exact steps taken to fix it. If they struggle to explain the adjustment, they lack the necessary oversight skills. You must also ask how they manage the handoff between firm records and the administrator. Do not let them off the hook with generic answers about software features. Ask them to explain the specific accounting entries required for an equalized capital call or a complex waterfall distribution. If they cannot explain these mechanics on a whiteboard, they will not be able to catch errors before they reach your investors. Force them to define the boundary between their responsibilities and the administrator. Their inability to distinguish between the two is a major red flag that indicates they will rely too heavily on external data.
- 01Administrator performs data entry for investments.
- 02Controller reconciles capital account roll forwards.
- 03Administrator calculates management fees.
- 04Controller reviews fee calculations against fund agreements.
02
Screening for technical baseline
Focus on their specific experience with fund accounting systems. Ask about Investran, eFront, Allvue or Yardi. A candidate must show how they handled waterfall calculations in a prior role. Look for practical knowledge of ASC 946 accounting standards.
Confirm their experience with LP reporting. They should explain how they handle capital calls and distributions. Ask how they reconcile partner capital accounts when errors occur. Listen for clear steps on identifying discrepancies in NAV packages.
- 01AskWalk me through a capital call process you managed.
- 02AskHow do you verify management fees calculated by an admin?
- 03AskExplain your experience with carried interest calculations.
- 04AskWhat is your process for reviewing an annual audit file?
03
Avoiding interview pitfalls
Do not accept vague descriptions of fund operations. If they cannot explain a capital account roll forward, they lack core skills. Do not ignore a lack of experience with management company entities. Many fund accountants have never touched firm level accounting.
Avoid candidates who only talk about software features. You need someone who knows the accounting logic behind the numbers. Press for details on how they fix errors. If they only blame the administrator, they are not taking ownership of the final financial report.
- 01MistakeHiring based on job titles without testing accounting math.
- 02MistakeOverlooking the need for management company experience.
- 03MistakeAssuming the administrator catches all fund errors.
- 04MistakeFailing to check if they have worked with current fund types.
04
Credentials and qualification checks
The CPA license proves a candidate passed four specific exams and met state experience requirements. It confirms baseline technical knowledge of accounting rules. It does not mean they have worked in private equity funds. You must check their status through the state board of accountancy.
Certifications provide evidence of specialized training. They do not replace hands on work experience. Use these as a filter for interest, not as proof of competence. Always verify the status with the issuing organization. Most certifications require ongoing continuing education.
- 01CPAState issued license requiring exam passage and experience.
- 02CertificationIndustry specific credential verified by the issuer.
- 03RegistrationVerify status with relevant regulatory body.
- 04ChecklistAlways confirm credentials against official board records.
05
Choosing the right level
Select a Fund Accountant for high volume transaction work under supervision. Hire a Fund Controller to manage the admin relationship and final sign off. A CFO level is only necessary if you require strategic firm level financial planning and tax structuring.
Senior Fund Accountants handle complex work like carried interest. They usually need minimal guidance on standard fund processes. Match the level to the complexity of your current fund structures. A simple real estate fund requires less technical accounting than a complex private credit fund with nested vehicles.
- 01Fund AccountantTransaction processing and basic reporting.
- 02Fund ControllerOversight, audit management and final review.
- 03CFOFirm strategy, tax structuring and investor relations.
- 04Senior AccountantComplex waterfalls and capital account work.
06
Which related hiring decisions are worth comparing?
Questions people ask
Can I have the administrator do everything?
No, the administrator provides the data, but you remain responsible for the financial accuracy and investor communications.
Why do I need a controller if I have a CFO?
A CFO focuses on high level firm strategy. A controller is needed for the daily accounting, audit coordination and NAV review tasks.
What is the biggest trade-off in hiring junior versus senior?
Junior staff require more supervision on technical entries. Senior staff cost more but take full ownership of the reporting process.
When does someone move to a new firm?
Candidates move when they are stuck in a narrow role and want exposure to new asset classes or more complex fund structures.