Fund of funds software

Two layers of the same machinery

Downwards, the fund of funds is an investor: it commits to underlying funds, receives their calls, pays them, and receives distributions on their schedule, which it does not control.

Upwards, it is a manager: it calls capital from its own investors, reports to them and distributes to them. The cash timing between the two layers is the whole operational problem.

Look through is the second problem. An investor in a fund of funds usually wants to know what they are actually exposed to underneath, by sector, geography and sometimes by company.

Manager selection is part of the record

The allocation decision is the fund of funds product. Why this manager, on what evidence, against which alternatives, with what concerns noted at the time.

That reasoning is usually the least systematised thing in the office, which is a problem when the person who made the call has moved on and the re-up decision is due.

• A directory of managers under consideration.
• Side by side comparison on the same criteria.
• A diligence workspace per manager.
• A triangulated view where several analysts scored the same manager.
• The decision, its reasoning and its date, kept with the position.

How this runs in Reuben AI

Allocators get a manager directory, side by side comparison, a diligence workspace per manager and a triangulated view across analysts, so the selection decision is recorded rather than remembered.

Fund of funds managers get dedicated surfaces for managers, portfolio of funds and completions, and a staging area to load existing holdings when the vehicle is already running.

The vehicle's own investors, calls, distributions and reporting run on the same fund machinery as any other fund, including period locking, so both layers sit in one register.

What stays off the platform

Being honest about the boundary is more useful than claiming everything. Reuben AI is not an auditor, a law firm, a tax agent, a bank or a licensed administrator, and it does not sign anything that those roles have to sign.

What the platform does is hold the records those people need in a form they can accept, and produce the packs on request rather than at the end of a two week scramble.

• Audit opinion and assurance work: your auditor.
• Fund formation documents and legal advice: your counsel.
• Tax filings and returns: your tax adviser.
• Holding client money and moving it: your bank and payment providers.
• Licensed administration or trustee duties where local rules require a licence: your administrator or trustee.

Common questions

Can it show look through exposure?

Underlying holdings can be loaded and rolled up, so exposure can be seen beneath the funds rather than only at the fund level.

Does it handle secondaries purchases of fund interests?

Interests acquired in the secondary market are held as positions in the same register, with their own cost, date and cashflow history.

Is this useful for an LP that is not a fund of funds?

Yes. Endowments, pensions and family offices allocating to managers run the same selection and monitoring work without the second layer of investors.