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To conclude, work with your advisors, ask questions, and seek out guidance. Prepare work papers and ensure the fulfillment of financial reporting requirements for external and internal audits and tax accountants. Inform management as to any discrepancies or any other problem areas that may exist that arise from the audit.
Elizabeth is part of the Business Assurance & Advisory Services group at Keiter. Her client base consists primarily of private equity and real estate funds and also includes contractors and not-for-profits. Elizabeth specializes in auditing non-registered investment funds and possesses a comprehensive understanding of fund accounting and auditing services. Fair value reporting – The fair value conversation warrants an article of its own. The guidance requires managers to perform annual analysis to determine the exit value of each investment using an income, cost, or market approach. Most commonly for real estate, this takes the form of an independent appraisal, broker opinion of value, or subsequent sale data.
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With more than $1 trillion in assets under administration, we deliver end-to-end solutions and exceptional service to meet our clients’ needs. Our extensive pool of high-calibre real estate professionals, who operate in over 45 jurisdictions, are in place to offer you industry-leading support. A highly multi-lingual environment, wherever you are, or wherever you need to be our team can structure, manage, deliver and scale your real estate funds, enabling you to seize opportunity. Outsourcing your fund accounting function is not just a cost management strategy.
Users rely on the financial statements to gain an understanding of your fund’s financial position and the results of its operations. Regulatory requirements surrounding your fund, following an established framework , or provisions in your organizational documents are just some of the factors to consider when making a choice. Interact with internal and external customers, asset managers, property managers and all necessary departments to ensure prompt resolution of issues and achieve maximum efficiency of operations. Distributions to investors – Investment fund operating agreements typically include preferred return and carried interest clauses in the methodology for distributing proceeds to investors. However, depending on the language included, tracking these returns can become a cumbersome exercise. When developing the operating agreement, consider the priority of distributions and the frequency of compounding the returns.
Real estate entity management solutions
Internal cash flow models may also substantiate a valuation for the real estate held. Subsequent to determining a value of the underlying real estate asset, adjustments must be made for other assets and liabilities held at the investment entity level. Furthermore, for joint ventures, it is imperative that all distribution waterfalls are clearly described and understood by all parties to calculate the residual value for the fund investors. This area of financial reporting requires significant estimates in many cases and poses substantial audit risk when the underlying investment is unaudited. Capturing the right data for asset management reporting, risk assessment and regulatory requirements is critical in the Real Estate Fund industry.
- Our powerful reporting capabilities, transparent data submissions, SPV accounting and advanced administration technology—including Yardi® Investment Accounting—will assist you in bringing clarity and control to your funds.
- Her client base consists primarily of private equity and real estate funds and also includes contractors and not-for-profits.
- Capturing the right data for asset management reporting, risk assessment and regulatory requirements is critical in the Real Estate Fund industry.
- The following list highlights a few items impacted by the specialized guidance that must be considered in the planning and early phases of the fund life to maximize returns for the manager and the investors.
- You will prepare financial statements, footnotes and partner capital statements.
Being proactive could alleviate delays when you are trying to finalize your audited financial statements. CohnReznick’s Commercial Real Estate industry practice is one of the largest of its kind among national accounting firms in the U.S., serving clients in all 50 states. If you’re planning to invest or expand into Europe, you can rely on our trusted AIFM team to help you to access the market quickly.
Optimised by leading technology
As a real estate accounting fund administrator we understand these challenges and have the expertise and solutions to help you overcome them. NAV utilizes its own proprietary fund administration technology to support every fund structure and asset class traded. Our internal team of 200 IT professionals focuses on optimizing operational efficiency, maintaining strong network security, and providing comprehensive best-in-class reporting solutions. Financial statements are a tool that investors, creditors and management use as a financial dashboard of the business or fund.
Track and drill down from the investor level all the way to the property level of your fund. Streamline processing and payment of contributions and distributions via waterfalls to better serve your investors. MRI Agora™ Drive smarter decisions and engaging experiences with a hyper-connected real estate platform. Solutions MRI Living™ Simplify living for property professionals and residential communities with integrated digital services.