Private Fund Custody
According to the SEC, Registered Investment Advisors who have custody of their clients’ funds or securities must safeguard those funds. To comply, private fund issuers may use an independent qualified custodian to hold client assets.
Equity Trust Company is a qualified custodian that offers this service to private funds and organizations.
WHAT WE OFFER
Equity Trust executes on behalf of the fund and reports and stores documents
- Custody of assets and cash
- Register all assets in Equity Trust’s name
- Processing all new purchases/liquidations
- Monitors all incoming and outgoing payments
- Provide fund-level statements to all investors of the fund
Equity Trust physically holds the asset's documents and offers quarterly reporting
- Physical custody of original documents (i.e., stock certificate)
- No re-registration of assets
- No cash custody or payment processing
- Essentially a “safety deposit box”
What's the difference between full custody and document custody?
Benefits of Custody Examination VS Financial Statement Audits
There are many benefits of custody examination vs. financial statement audits. Equity Trust opens accounts at the fund level to hold cash and alternative investments. These alternative investments include private equity/debt, VC, and real estate. We process transactions for the fund and report all holdings and activity to the fund and its participants quarterly. Equity Trust provides a customizable solution and pricing plan based on each fund’s structure and needs. We understand the Custody Rule requirements and are responsive partners to surprise examiners and fund administrators.
Equity Trust does not endorse investments, give tax, investment, or legal advice. Therefore, we will never compete with you for your clients’ business. We act as a third party to your clients and their investment choices. At Equity Trust , your relationship is important to us. You’ll be assigned a dedicated account manager who will directly work with you to provide the utmost service.
Contact Equity Trust today, and a member of our business development staff will discuss your fund-level custody needs. You may also call us at (312) 767-6863.
Operating Your Private Fund
What are the responsibilities of each service provider to my Private Fund account?
Private Fund Custody FAQs
How Does a Qualified Custodian Differ From a Fund Administrator?
The Custodian operates at the fund-level, while the Administrator operates at an investor-level. Think of the Qualified Custodian as the home base for the cash and assets of the fund. It is where all the transactions take place and are reported. These transactions can include the fund’s incoming subscriptions, investments, distributions, and more. Whereas, the Fund Administrator is responsible for collecting information and performance reporting for each respective individual investor.
How Does a Fund Manager Operate Their Account With Equity Trust?
Equity Trust has developed a custom dashboard for fund managers called Equity Dash. It allows the manager to upload investment documents, initiate an investment, pay expenses, and execute the fund’s transactions. Equity Dash is designed to let fund managers manage their private fund(s) quickly and efficiently. Auditors and investors can retrieve statements and historical transaction reports at any time.
What Kind of Reporting Does Equity Trust Provide?
For funds to adhere to the Custody Rule, Equity Trust sends reports quarterly. Formal, fund-level statements are furnished for the fund and its investors. These statements can be delivered to most of the investors’ roster for a given quarter. In the statement made available to the fund manager, sensitive information, such as the investor’s name on contributions, is redacted.
What is Included in Equity Trust's Private Fund Custody Service, and What Are the Fees?
Custody Services provided by Equity Trust can be tailored to your business’ operational, administrative, and compliance needs. Whether you need to check a box for your examiners, completely outsource your “back-office” or want to deliver more value to your investors by providing transparency – Equity Trust’s Private Fund Custody solutions can be customized to fit your needs. There is no “one-size-fits-all” approach here. Reach out to start a conversation with us, and we can present you with a solution that keeps your costs low and your fund compliant.