Alternatives Knowledge Base

Operations – Section Index

Properties2
descriptionOverview of the operational processes that support alternative investment fund management.
tagsoperations, index, fund-administration

2 min read

Operations – Section Index

What This Section Covers

These files cover the key operational processes in alternative investment fund management. Operations teams in banks, asset managers, and fund administrators interact with these processes daily. Read this section alongside or after Fund Structures and Concepts.

Files in This Section

FileProcess
Onboarding and KYCInvestor due diligence and account setup
SubscriptionsAccepting new investor capital into a fund
Capital CallsDrawing down committed LP capital
DistributionsReturning capital and profits to investors
NAV ProductionCalculating and verifying fund net asset value
Investor ReportingCommunicating performance and fund status to LPs
Fee CalculationsHow management fees and carried interest are computed
Data ManagementManaging fund data at scale across systems and parties

Suggested Reading Order

  1. Onboarding and KYC — the entry point for any new investor relationship
  2. Subscriptions — how investors formally enter a fund
  3. Capital Calls — how committed capital is drawn from LPs
  4. Distributions — how capital and returns flow back to LPs
  5. NAV Production — how fund value is calculated between distributions
  6. Fee Calculations — how management fees and carry are computed from NAV and returns
  7. Investor Reporting — how all of the above is communicated to LPs
  8. Data Management — the infrastructure that underpins all other processes
  • NAV Production — the most technically complex process; intersects with valuation risk and IFRS 13/ASC 820
  • Capital Calls — the most operationally frequent interaction between GP and LP; includes subscription line mechanics
  • Investor Reporting — the primary output of operations; anchors to ILPA Templates
  • Onboarding and KYC — the first and legally most sensitive step in the investor lifecycle

Self-Check Questions

  1. What is the difference between a subscription in a closed-ended fund and a subscription in an open-ended fund?
  2. What triggers a capital call and what must happen before an LP transfers funds?
  3. Who calculates NAV in a private fund, and what independent check exists?
  4. What are the main components of a quarterly LP report?
  5. How does using a subscription line facility affect the timing of capital calls and the reported IRR?
  • Fund Structures — operations vary significantly by structure type
  • Concepts — capital commitments, distributions, and NAV mechanics originate here
  • Risk — operational risk is a key risk type; NAV production intersects with valuation risk
  • Sources — ILPA Templates, IPEV, and FATF are key sources for this section

8 items under this folder.