Definition: The practice of maintaining shadow accounts in order to verify a third-party fund administrator’s calculations as well as generate views of the firm’s finances that are available earlier than the fund admin’s month-end report.
Example: An example of shadow accounting would be the internal NAV reconciliation, which calculates the daily or monthly NAV and compares it to the NAV from a fund administrator to detect any discrepancies.
Explore IVP Shadow Accounting Services
IVP Shadow Accounting Services help hedge funds and asset managers independently track positions, cash balances, and valuations to verify fund administrator records. The service enables firms to outsource comprehensive or partial accounting functions, improving operational efficiency, strengthening financial oversight, and supporting a wide range of fund structures and accounting platforms.
