The third annual Alternative Investment Fund Pro Forma Financial Statements Reference Manual, published November 15, 2012, by Rothstein Kass, provides the alternative investment community with a comprehensive guidebook for completing financial statements for hedge and hybrid funds, fund of funds, and master-feeder structures.
Updated to reflect the latest industry developments, this year's edition includes sample financial statements for Domestic Fund, L.P.; Offshore Fund, Ltd.; Master Fund, L.P.; Domestic Feeder, L.P.; and Offshore Feeder, Ltd. structures.
"Throughout last year, alternative investment professionals have faced ongoing volatility, a number of industry-wide developments, and growing economic uncertainty both in the United States and worldwide," said Vince Calcagno, principal in charge of the Rothstein Kass Beverly Hills office. "While fund managers are still experiencing continued positive trends in institutional investing, their time has never been more splintered. And on top of it all, fund managers are also faced with mounting regulations that are adding extra layers to an already complex financial reporting process."
Notes to Financial Statements Section
The Notes to Financial Statements section includes:
- Reference information and explanations on the nature of operations and summary of significant accounting policies
- Fair value measurements
- Investments in private investment companies
- Amounts due from/to brokers
- Derivative contracts
- Securities purchased under agreements to resell and securities sold under agreements to repurchase
- Securities lending agreements
- Securities sold short
- Concentration of credit risk
- Partners' capital
- Related party transactions
- Ddministrative fee
- Financial highlights
- Subsequent events
The reference manual includes sample templates for the statement of financial condition, statement of operations, statement of changes in partners' capital, statement of cash flows, and the condensed schedule of investments. Drawing on Rothstein Kass' industry-leading knowledge and deep expertise in the alternative investment sector, the manual also includes an extensive Notes to Financial Statements section for every fund.
"There's no doubt in our minds these regulations will help further build investor confidence in the alternative investment space by increasing transparency and consistency, ensuring accuracy and making statements more understandable to investors. However, the 'new normal' compliance burden for managers is considerable," said Howard Altman, co-CEO and principal in charge of the Rothstein Kass Financial Services Group. "That's why we've made it a top priority to update this year's guide. With this guide in hand, our goal is for fund managers to minimize time spent on financial statement reporting so they can focus on their investment objectives and on the business of the business - managing investor assets."
Source: November 15, 2012, Rothstein Kass Press Release