Alternative Investment Funds Audit and Tax Services

calendar iconDecember 6, 2021
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The ever-changing alternative investment regulatory and tax environment combined with investor demands for greater transparency in financial and tax reporting has changed the fund audit and tax function from a “check the box” exercise to a key value lever for Funds, LPs and GPs.

Assurance Services

The financial reporting landscape for alternative investment funds has grown in complexity and is continuously being impacted by new standards. As a Public Company Accounting Oversight (PCAOB) registered firm, our fund assurance specialists draw from extensive industry knowledge and expertise to ensure our audit processes are designed to provide quality, transparency, clarity and efficiency in the financial reporting process while simplifying the complex, regardless of fund size. Our audit team uses innovative testing techniques and a tailored approach to provide you with timely communications and value-added recommendations. In addition, we can also provide assurance services to offshore entities to comply with foreign regulators.

Tax Services

No longer a year-end compliance exercise, the tax function is widely recognized as a key value lever that plays a vital role in delivering maximum value to alternative investment funds and their investors throughout the year. Our comprehensive, practical approach focuses on the funds and their partners, assisting them to plan and make decisions that will help them achieve their goals on a tax-efficient basis. We offer an organized, experience-based approach to help fund managers with often-overlooked areas, such as IRC Code Sections 1202, that can significantly improve the after-tax rate of return. With in-depth industry knowledge and proven experience in navigating the complexities of fund tax reporting requirements, our team devises innovative solutions to enhance timeliness, accuracy and value of the fund tax function.

Products we work with

  • Common Trust Funds
  • Collective Investment Funds
  • Hedge Funds
  • Private Equity
  • Venture Capital
  • Regulated Funds
  • SBIC Funds
  • Business Development Companies

Fund Assurance Services

  • Audits, reviews, and compilations of financial statements
  • Assistance with regulatory compliance e.g., NFA and CFTC
  • Agreed-upon procedures and other attest services
  • Surprise custody examinations under the SEC Custody Rule
  • Verification of internal rate of return or other performance metrics
  • Assistance with partnership profit allocations and performance-based fee calculations
  • Review of initial offering documents
  • Assessments of internal controls
  • Seed audit services for newly established funds

Tax Advisory Services

  • Tax return preparation or review for federal, state and excise tax requirements
  • Tax Planning & Compliance
  • Waterfall, Carried Interest and Capital Account calculations/maintenance
  • IRS compliance consulting
  • Complex tax allocation issues
  • Tax consultation on fund structuring, including start-ups and mergers/reorganizations
  • Evaluation and monitoring of uncertain tax positions
  • FATCA implementation
  • Tax compliance related to U.S. taxation of foreign investors and foreign entities

Advisory Services

  • Preferred returns and Internal rate of return (IRR) calculations
  • Business combination analysis and assistance
  • Due diligence and transaction services
  • Digital advisory and portfolio optimization services
  • Valuation of portfolio companies and complex securities

Questions? Contact Us