ROYC in Motion: May 2025
Automated Share Class and Pricing Management
As part of our ongoing efforts to streamline operations and enhance the efficiency of our private equity fund platform, ROYC is introducing a solution for managing multiple share classes and pricing across various feeders.The platform is designed to support the full operational complexity of fund structures, including splits within management fees and the ability to calculate retrocession and trailer fees where applicable. These mechanics ensure that fee entitlements are accurately tracked and allocated across different stakeholders such as distributors, advisors, or sub-classes of investors. Additionally, a clear and intuitive reporting module is available, making it easy for operational teams to view, audit, or share fee breakdowns with internal stakeholders or external parties such as auditors, service providers, or investors. This reduces the risk of errors and simplifies fee oversight across complex multi-class, multi-layered fund environments.
Key Improvements Include:
Automatic Share Class Assignment:
The system will automatically assign the appropriate share class to each investor based on predefined rules, which can include factors such as investment size, investor profile, and feeder allocations. This eliminates the need for manual intervention, reducing errors and administrative workload.
Fee Calculation and Application:
Fees will be automatically calculated based on the share class and feeder selection. This includes management fees, performance fees, and any other applicable charges, ensuring that each investor’s fee structure is accurately applied without manual intervention. The system will calculate fees based on the agreed-upon terms, including pro-rata adjustments as necessary.
Managing Multiple Share Classes for the Same Investment:
For investors with investments across multiple share classes within the same feeder, our platform will consolidate these investments into a single view. This ensures that the investor has a clear overview of their total investment, rather than seeing separate rows for each share class. This greatly simplifies reporting and enhances transparency, allowing investors to track the performance of their overall investment more effectively.
Semi-Liquid Funds Support:
For semi-liquid funds, where liquidity events may occur periodically or on demand, our platform handles multiple share classes and feeders with different liquidity profiles seamlessly. This allows for real-time adjustments to the share class and pricing based on the investor’s liquidity preferences, while also ensuring accurate fee calculations and reporting.
Investor Reporting and Transparency:
Investors will receive real-time access to their investment details, including the consolidated view of their investments across share classes, pricing, fees applied, and performance metrics. This provides greater transparency and helps investors track their total investment portfolio with ease.
Flexible Configuration and Customization:
The platform allows for customisation to fit specific fund structures, including different fee schedules and pricing models for each feeder and share class. Administrators can adjust these parameters as needed, with updates being automatically reflected across all relevant calculations and reports.
Integration with Fund Administration:
The system integrates seamlessly with our fund administration tools, ensuring consistency across all reports, investor communications, and compliance checks. This reduces administrative overhead and ensures all data is synchronised across the platform.
By automating these processes, ROYC enhances operational efficiency, reduces the risk of human error, and provides a smoother experience for both fund managers and investors. These enhancements will allow for more accurate management of complex fund structures, while also providing a consolidated, transparent view of investments, especially in the case of multiple share classes or semi-liquid funds.