AIFLedger · by CorpZo · Fund Admin

Role of the fund administrator in an AIF

The fund administrator keeps an Alternative Investment Fund running between the two "big-bang" events — the fund's launch and its final distribution. This is a practitioner walk-through of what a competent AIF fund administrator does across the daily, month-end, and year-end cadence.

Daily responsibilities

• Cash and bank reconciliation — matching UTRs from bank statements against expected drawdown collections and coupon inflows.
• Trade capture and portfolio positions — booking new investments, exits, and coupon receipts on trade date.
• Daily NAV striking (Category III strategies) — computing NAV per class of units using end-of-day marks, with HWM and hurdle applied.
• Investor queries — statement requests, tax certificate re-issues, KYC updates.

Weekly and monthly cadence

• Capital call cycle — computing per-LP drawdown amount from the commitment register, dispatching notices, and reconciling receipts.
• Monthly NAV publish (Category I & II) — with class-wise economics, side-pocket accounting, and trustee sign-off.
• Portfolio revaluation — coordinating with independent valuers where required and applying policy-driven marks.
• Distributions — computing waterfall (return of capital, preferred return, catch-up, carry), issuing distribution notices, and dispatching payments.
• Compliance calendar — filing SEBI quarterly returns, tracking trustee-approval items, and refreshing the risk register.

Year-end responsibilities

• Financial statements — Ind AS financials, notes to accounts, going-concern narrative.
• Audit facilitation — sample selection, walkthrough of controls, evidence pack preparation.
• Form 64C and tax pass-through — issuing per-investor income statements aligned to the fund's tax character (Category I/II pass-through; Category III fund-level).
• Annual investor letter — performance narrative, portfolio update, capital-account reconciliation.

Where fund-administration software helps

Every one of the above items is doable in Excel — but only up to a point. A single fund with 30 LPs, 12 portfolio companies and a Category II class-wise waterfall generates several hundred journal entries a month, thousands of investor records, and a stack of reconciliation trails that eventually breaks a spreadsheet-based workflow.

Modern AIF back office software — such as AIFLedger — collapses the day-to-day cadence into workflow-driven modules: an AIF investor onboarding platform for KYC and subscription, a commitment-and-drawdown register, an AIF transfer agency software layer for the unit register, a maker-checker journal, class-wise NAV, and a compliance calendar. The role of the fund administrator doesn't disappear — but the friction does.

See how AIFLedger runs a fund admin operation →