DIAMOS-A on investor management

Management of agreements to provide capital and drawdowns specifically for special funds in alternative asset classes

In recent years, the market for special funds investing in alternative investments has seen steady growth. Special funds now account for a large part of the new business of many asset managers. These funds are often designed as “blind pools” in which the assets to be acquired have not yet been determined at the time of the fund launch. It is customary for the fund management to receive agreements to provide capital from the investors. These are called up by the investors when required (i.e. in the event of an investment). Compared with funds investing in liquid products, this entails an additional administrative component, namely the management of outstanding or uncalled agreements to provide capital.

Traditional fund accounting systems do not specifically address this particularity of illiquid alternative investments. As a result, specially designed spreadsheet solutions or self-developed databases are often used. These are limited in terms of their flexibility to react to more complex retrieval scenarios. Furthermore, especially with such a sensitive topic as capital claims against investors, the auditing security of such solutions must be put to the test. DIAMOS-A provides a remedy in this increasingly extensive and complex environment.