One of the most common points of confusion for first-time fund managers is understanding exactly what a fund administrator handles versus what requires a separate CPA, attorney, or other advisor.

What fund administrators handle

Fund accounting

Your fund administrator maintains your fund's complete books and records throughout the year.

LP capital account statements

Quarterly and annual statements for each LP's capital account.

Capital call processing

Preparing formal notices, tracking LP funding, reconciling incoming capital.

Financial statement preparation

GAAP-compliant financial statements prepared throughout the year.

Audit support

Organizing all records for your annual financial audit.

AML/KYC compliance

LP onboarding compliance including subscription documents and AML checks.

NAV and performance calculations

NAV, IRR, TVPI, DPI, RVPI — plus waterfall and carried interest tracking.

What fund administrators do not handle

K-1 preparation and distribution

Requires a licensed CPA. A good administrator prepares all the underlying data your CPA needs.

Tax return filing

Filing Form 1065 and state returns requires a licensed CPA.

Legal and structural advice

Requires a qualified fund formation attorney.

Fundraising and LP development

Abax focuses on operations, not LP development.

How to structure your vendor relationships

Fund administrator: Accounting, LP reporting, capital calls, audit prep, compliance
CPA / tax firm: Annual tax returns and K-1 preparation
Fund formation attorney: Fund structure, LP agreements, legal questions

At Abax, we prepare complete, organized records for your CPA and auditor throughout the year. Book a 20-minute call.

What Fund Administrators Handle (and What They Don't): K-1s, Audits, and Tax Filing Explained