AI for fund accounting
Ultramarine Work reads the LPA, the trial balance and the prime broker statements in your fund folder. It runs the waterfall, allocates the capital call across the LPs and builds the NAV package in Excel. Every figure names its source file.
FundIII-waterfall.xlsxExample| Tier | LPs | GP | Total | Basis |
|---|---|---|---|---|
| 1. Return of capital | 8,000,000.00 | 0.00 | 8,000,000.00 | This returns contributed capital for Harlow Components per the call ledger. |
| 2. Preferred return | 2,555,830.10 | 0.00 | 2,555,830.10 | The pref is 8% a year, compounded quarterly over 14 quarters. |
| 3. GP catch-up | 0.00 | 638,957.53 | 638,957.53 | The GP takes 100% until it holds 20% of profits. |
| 4. 80/20 split | 2,444,169.90 | 611,042.47 | 3,055,212.37 | The remaining proceeds split 80% to LPs and 20% to the GP. |
| Total | 13,000,000.00 | 1,250,000.00 | 14,250,000.00 | This ties to the $14,250,000 of exit proceeds. |
| Clawback test | Cumulative carry of $4.61M is $380k over 20% of fund profits after the Corvane loss. |
NoteEscrow $380,000 of this GP distribution under LPA section 9.4 until fund-level profits cover the cumulative carry.
Ask it for
“Run the waterfall on Fund III’s $14,250,000 exit proceeds: return of capital, 8% pref compounded quarterly, 100% catch-up, 80/20 split, then a GP clawback test.”
FundIII-waterfall.xlsx“Work out each LP’s share of Fund II’s $6,800,000 capital call for the Quarryfield acquisition and draft the notice with the use of funds and the LPA section.”
FundII-notice-09.docx“Build the October NAV package for the feeder: tie the trial balance, accrue the fees and expenses, and finish with the NAV bridge from September’s strike.”
Oct-NAV-package.xlsx“Reconcile positions and cash to the prime broker’s November 14 report, list every break with its root cause and flag anything open more than five business days.”
Nov14-position-recs.xlsx“Pull the Form PF Section 1 data for Fund II from the trial balance and borrowings schedule, cite the source of every field and list what didn’t tie.”
FormPF-FundII-data.xlsx“Mark the six portfolio companies under ASC 820 from the latest rounds and guideline public comparables, and draft the memo for the valuation committee.”
ASC820-valuation-memo.docx
Inside the Fund Accounting mode
Fund NAV and financial statements
Builds the NAV pack behind the strike, with the trial balance tie-out, accruals, investor allocations, the ASC 946 statements and the schedule of investments.
Fund capital activity and waterfalls
Runs the LPA waterfall tier by tier and applies side letter terms to every call and distribution. It keeps the capital accounts and the fee offsets straight.
Position reconciliation and corporate actions
Matches positions and cash to the custodian or prime broker and tests corporate action elections before the NAV. Breaks come back sorted by root cause and age.
Investment regulatory filings
Assembles the holdings and fund data for Form PF, Form 13F, Form N-PORT and Form ADV, with the source file on every field it fills.
Audit PBC and evidence requests
Ties the draft financials to support, builds the sample documentation and the PBC answers the auditors ask for. Each adjustment shows the materiality math.
Fair value financial reporting valuations
Puts the support behind the marks, from ASC 820 sheets off the latest rounds and guideline comparables to ASC 805 allocations and the valuation committee memo.
- Office skills
- Excel, Word, PowerPoint, PDF
- Tools
- Read, edit and write files, Search files, Run code, Search and read the web, View images
- Connectors
- SharePoint, Google Drive, Gmail, and additional custom connectors
- House style
- Your fonts, layouts and rules, on every file
How it works
- 1
Start with the fund folder
Drop in the LPA and side letters, the administrator’s trial balance and NAV pack or your own general ledger, and the custodian and prime broker statements. The capital activity file and last year’s audited financials go in the same folder.
- 2
Name what you need
Ask for the waterfall on an exit, the NAV package at month-end or a position rec against the prime broker. It hands back an Excel workbook with live formulas and the file behind each figure, plus a list of what it couldn’t tie.
- 3
Review it, then decide
Because every number points to its source, review means re-testing the pref compounding and the side letter fee calculations instead of rebuilding them from scratch. You approve the NAV and send the notices.
Who it’s for
Fund accountants, fund controllers and fund administrators for private equity, credit, real estate, hedge and registered funds.
Questions
Can it read our LPA and side letters and apply the terms?
Yes, once the LPA and side letters are in the folder it applies the definitions it finds to fees, allocations, calls and distributions. It points to the section it relied on. What it cannot find, it reports rather than guessing. The fund controller still confirms the terms behind anything that moves money, because one side letter clause changes the whole waterfall.
Will our auditors accept workpapers prepared with AI?
Yes, if the workpapers trace back to records the auditors can rely on. That standard sits in AU-C 500 and it has not changed. AICPA’s 2026 practice aid tells auditors to assess the reliability of AI-produced information and trace it to the underlying records, so keep the source files and the trail. Ultramarine Work cites the source file for each figure and notes what it could not find or reconcile. Your team still makes the sampling decisions and the judgment calls.
Where does our fund and LP data go?
Ultramarine Work changes files only in the project’s folder. When a request needs it, it can read files elsewhere on your computer, never passwords, keys or app data, and you can turn that off in settings. The model runs on Paper Instruments’ servers, so the content it works on is sent there to be processed. Paper Instruments is SOC 2 Type II, and our security and compliance details are on our compliance page.