Backstop’s Partnership Allocation Module is a powerful and flexible solution for managing and allocating fund level income and expenses to investor accounts in onshore and offshore funds. The Partnership Allocation Module is seamlessly integrated with other modules like General Ledger Accounting and is supported by our experienced hedge fund accounting consultants.

Benefits of Using the Partnership Allocation Module

Allocate Income and Calculate Fees

The Partnership Allocation Module captures investor transactions and portfolio level income/expenses and applies highly customizable fee structures to calculate and allocate capital account balances for partnerships and series-based funds.

Shadow Your Third Party Administrator or Enhance Your Self-Administration Infrastructure

The Partnership Allocation Module and Backstop are the backbone of a robust, secure, and auditable infrastructure needed to garner confidence from investors and to identify, correct, and communicate discrepancies and potential errors with an administrator.

Simplify Audit Preparation

The Partnership Allocation Module helps managers reduce the time and expense associated with preparing for and conducting annual audits. Standard and user-defined reports make it easy to gather, analyze, and distribute information critical to the audit process.

Supported Accounting Models

• Onshore partnership by account
• Onshore partnership by tranche
• Offshore series-based

Features and Functionality

The Partnership Allocation Module supports the majority of existing allocation processes and allows users to explicitly customize calculations to match their accounting methods.

• Calculations are customizable to meet client needs for the accrual of management and
  performance fees
• Transparency of calculations allows users to view account calculation details on familiar
  Backstop screens
• Crystallization of incentive fees can occur automatically on a quarterly or annual basis
• Multiple fee structures that vary by period, account, class, and/or terms are supported
• Tranche accounting is available to handle incentive fee calculations at the transaction level
• Performance fee accrual can be based on the highwater or profit/loss concept
• Hurdle rates can be calculated using a benchmark or a fixed rate
• Manual overrides allow users to adjust any discrepancies in the allocation process