Backstop Allocation Module

The Allocation Module provides fund managers with a powerful software solution for allocating portfolio income to investor accounts.

How It Works

Backstop clients create custom income and expense categories. At the end of each accounting period (e.g. month, quarter, etc.), the income from the portfolio and other sources are entered into Backstop.

Portfolio income is entered into Backstop in one of two ways:

• Single-manager hedge funds enter their portfolio income, as calculated by a 3rd party administrator or software package.
• Fund of Funds enter the returns reported by each manager in a portfolio, and Backstop will calculate the NAV.

Backstop will then calculate the value of each investor account, with fees, based on the subscription terms, transactions, and other information previously entered into the software.

Backstop can perform economic allocation for most funds structured as partnerships or share series. Backstop provides reports that are helpful in preparing for a year-end audit, but you will still need an auditor or other qualified professional to prepare K-1's and other tax documents.

Who Should Use It

The Backstop Allocation Module is most often used by managers who want to keep a second set of books to shadow or check on a 3rd party administrator or accounting software package.

Getting Started

Your Backstop implementation manager will work with you to gather and upload your previous investor account transactions, account balances, and fund NAVs into Backstop. In addition, the implementation manger will work with you to get all of your subscription terms, fee structure, and other fund information entered into Backstop.

Once all of your historical data has been entered into Backstop, you will be able to allocate each month's income to investor accounts with minimal additional effort.

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