Fund Administration Solutions: How to Achieve Efficiency by Outsourcing with InvestNext


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One of the biggest challenges commercial real estate syndication firms face is finding an efficient and cost-effective way to help administer the fund management accounting process. Building a team of accountants and financial professionals to ensure the funds are appropriately handled and accounted for is often cost-prohibitive. Generally, the fund sponsors are too busy running their operations and need more skills to handle the accounting tasks themselves. 

Technological solutions in the past have attempted to solve these problems, but they fell short of being a simple one-stop shop for most of the issues that investment firms are trying to solve. 

That is up until now. InvestNext has launched its own Real Estate Fund Administration solution that drastically cuts costs and provides an easy-to-use and comprehensive platform to provide high-level CFO caliber talent at an affordable price point for investor management. 

Fund Administration definition

What is Fund Administration in Commercial Real Estate 

Fund Administration in commercial real estate refers to the process of managing and overseeing the financial operations of a real estate investment fund. The primary objective of these fund accounting services is to ensure that the financial records of the investments are accurate, up-to-date, and in compliance with regulatory requirements. 

Institutional fund administration tasks typically include bookkeeping, accounting, tax compliance, financial reporting, investor reporting, and cash management. In the context of a commercial real estate fund, this may also include overseeing property operations and management, monitoring the performance of individual assets, and ensuring the timely disbursement of funds to investors. 

A Fund Administrator may be an internal employee of an investment firm or an external third-party provider. Regardless of the structure, the role of the Fund Administrator is crucial in ensuring the integrity and transparency of the financial operations of the fund, which is essential for maintaining the trust of the limited partners (LPs) involved. 

Fund Administration Advantages for Businesses

In addition to maintaining financial accuracy and compliance, there are several advantages to having a Fund Administrator for your real estate syndication firm. Fund Administrators can provide investment management services to help businesses make informed investment decisions and asset management services to ensure that properties are maintained and operating efficiently. Companies can focus on their core competencies while also benefitting from the expertise and efficiency that comes from specialized professionals.

Moreover, relying on a professional fund admin team gives you ongoing support that empowers you to scale up your operations and seize expansion opportunities. Launching new deals can become a reality with efficient back-office management that strengthens your overall processes and ensures you can consistently increase value for your investors.

List of key services provided by Fund Administrators

What are the Key Services Offered by Fund Administration? 

A Fund Administrator in Commercial Real Estate typically offers the following services: 

Fund Accounting: Performing accurate and timely fund-level accounting and bookkeeping, encompassing income and expense tracking, net asset value calculations, and bank statement reconciliation.

Financial Reporting: Providing periodic financial statements and reports to investors, including balance sheets, income statements, and cash flow statements. 

Investor Reporting: Providing timely and detailed reporting to investors on their investments, including the performance of individual assets, portfolio performance, and distribution information. 

Tax Compliance: Ensuring the fund complies with tax laws and regulations, including filing tax returns and reporting taxes owed to the appropriate authorities. 

Cash Management: Overseeing the cash management and disbursement of funds to investors, including monitoring cash balances, reconciling bank statements, and executing wire transfers. 

Property Management: Overseeing the day-to-day operations of the fund’s properties, including property management, leasing, maintenance, and construction. 

Regulatory Compliance: Ensuring the fund complies with regulatory requirements, including securities laws, anti-money laundering regulations, and other compliance requirements. 

Risk Management: Monitoring and managing the fund’s risk, including credit risk, market risk, and operational risk, to minimize potential losses and protect the interests of investors. 

Choosing the Right Find Administrator 

Choosing the right Fund Administrator is a critical decision that can impact the success of your investments and the relationship between your investors. Here are some key considerations to help you choose the right Admin: 

Experience and expertise: Look for a Fund Administrator with extensive experience in the commercial real estate industry and a thorough understanding of the financial, tax, and regulatory aspects of real estate investing. 

Reputation: Check the reputation of the Fund Administrator, including references from other clients and their track record in the industry. 

Technology: Ensure the fund administrator software has cutting-edge bookkeeping, accounting, and reporting technology to increase efficiency and accuracy. 

Customer Service: A strong commitment to customer service and a responsive and supportive team that is available to answer questions and provide support. 

Cost: Consider the fund administration cost, and ensure it is reasonable and in line with industry standards. 

Scalability: Choose a Fund Administrator that can accommodate the growth of your funds and can provide services as your needs change over time. 

InvestNext’s Fund Administration Service 

Real estate fund sponsors are obligated to provide investors with detailed investment information. In contrast, investors often entrust the management of day-to-day fund operations to the sponsor’s expertise. By partnering with an all-inclusive fund admin team, you can focus on those core services, including raising capital and making deals. 

InvestNext’s Fund Admin service is a one-stop solution, offering capital raisers and investment managers all they need to handle all back-office financial operations for their deals. Unlike traditional fund administration firms that utilize archaic technology, our fund admin service provides complete visibility on updates, making it easier to comply with regulatory requirements. This approach ensures accuracy in processing distributions and reduces the likelihood of overpaying investors or losing money. 

We understand that each firm has unique needs and preferences, and we are committed to providing customized solutions that address your specific requirements. Our suite of service packages is designed to cater to firms of all sizes with varying assets under management:

Key benefits with InvestNexts Fund Admin Portal:

  • In-house CFO Experience: 360 access to senior-level accountants, tax managers, and auditors experienced in commercial real estate fund management
  • Accurate Distribution: Eliminate miscalculations and overpayment errors, enabling control over revenue and profit
  • Comprehensive Reporting: Innovative technology designed to support reporting on every structure and asset class within the sponsor and investor portal
  • Cost: CFO talent and efficiency without the excessive onboarding costs from outsourced Fund Admin Firms
  • Ongoing Communication and Support: One-on-one internal communication with your fund account rep. 

Some of the services provided include (but are not limited to):

  • Monitoring capital commitments, managing tax documents and preparing schedule K-1 statements for regulatory compliance
  • Assisting with real estate acquisitions, including due diligence and financial analysis
  • Conducting underwriting analyses for properties and managing complex waterfall distributions
  • Producing comprehensive investor reports to ensure timely and accurate information delivery

We at InvestNext prioritize convenience and accessibility, and we’re committed to developing tangible solutions that optimize your capital raise performance while impressing your investors. 


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