Key Takeaways
- Fund administrators handle core operations. They manage capital calls, LP reporting, fund accounting, certain types of compliance and KYC/AML checks, and more—so GPs can focus on investing.
- Dedicated ops signal fund maturity. Institutional LPs increasingly expect professional infrastructure from day one, even at early fund stages.
- Professional administration improves transparency. Fund admins deliver GAAP-compliant reporting, tax coordination, and investor-ready communication.
- Tech-enabled admins scale with your fund. A modern platform supports faster closings, integrated workflows, and operational continuity across vehicles.
A fund administrator is a third-party operational partner that manages the financial and reporting infrastructure of a venture capital fund. For General Partners (GPs), fund administration is essential to execute capital calls, produce audit-ready financials, and deliver institutional-grade LP reporting.
This article explains what fund administrators do, why they matter at every stage of a fund’s lifecycle, and how AngelList’s fund management offerings provide a modern, scalable way for GPs to launch a venture fund. Please note that the level and amount of services varies from administrator to administrator, and that this article is meant to provide a high-level overview of the typical services that a fund administrator will provide. Check with your particular administrator if you have questions on the scope of services being provided to your fund.
What Is a Fund Administrator?
A fund administrator is responsible for the financial and operational execution of a venture capital fund. Their core responsibilities include fund accounting, capital activity tracking, LP onboarding, LP distributions, and tax coordination.
While GPs focus on sourcing deals and supporting portfolio companies, fund admins ensure much of the “back-office” (e.g., tax, accounting) functions are running accurately and efficiently.
At AngelList, fund administration is built into our full-stack platform—giving GPs real-time visibility into performance, LP communication tools, and operational workflows that scale.
Core Responsibilities of a Fund Administrator
Fund administration is required infrastructure. Without it, a fund would struggle to legally or effectively operate. Below are the core functions a fund administrator performs throughout the ~10-year lifecycle of a venture fund.
Cash, Capital Calls and Distributions
- Prepare, distribute, and track capital call notices
- Calculate each LP’s pro rata commitment and distribution waterfall
- Manage cash and wire reconciliations
Fund Accounting and Financial Reporting
- Maintain general ledgers and transaction records
- Provide the data to calculate performance metrics (e.g., IRR, TVPI, DPI)
- Deliver GAAP-compliant quarterly and annual financials (when applicable)
Investor Relations, Reporting and Communication
- Maintain LP records and capital account balances
- Coordinate K-1 preparation and delivery for LPs
- Basic LP documentation delivery
- Onboard and perform AML/KYC on LPs
Regulatory and Compliance Support
- Collaborate with legal counsel and auditors
Why Fund Administration Is Non-Negotiable for GPs
Managing fund operations in-house creates avoidable risk, slows fund progress, and limits long-term scalability. Here’s why GPs should engage a professional fund administrator from day one:
Risk Mitigation
Errors in tax filings, capital calls, or cash distributions can result in LP dissatisfaction and create liability exposure for the fund. Fund admins reduce risk with built-in controls and operational oversight.
Time Efficiency
GPs should spend time building portfolios—not managing spreadsheets. Fund admins absorb operational lift so GPs stay focused on investment strategy and LP relationships.
LP Expectations
Institutional investors expect institutional-grade operations. A reputable fund admin is a signal of professionalism, accuracy, and preparedness.
Scalability
As GPs add vehicles, SPVs, or parallel funds, complexity grows. Tech-enabled fund admins offer the infrastructure needed to scale operations confidently.
In-House vs. Fund Admin: What’s at Stake
| Function | Self-Managed by GP | With a Fund Administrator |
|---|---|---|
| Capital Calls & Distributions | Manual tracking, risk of miscalculation | Automated notices, pro-rata accuracy, audit trails |
| Fund Accounting | GP-managed spreadsheets, no GAAP compliance | Ledger integrity, GAAP-compliant financials |
| LP Reporting | Ad hoc updates, limited transparency | Regular LP reports, performance dashboards |
| Tax & K-1s | Requires separate CPA coordination | Integrated workflow with tax partners |
| Audit Readiness | High risk of missed filings | Proactive coordination, systematized records |
Choosing the Right Fund Administrator
When selecting a fund admin, GPs should prioritize:
- Domain Expertise: Familiarity with venture-specific capital structures and workflows
- Technology Infrastructure: Integrations with LP portals, banking, and fund platforms
- Responsiveness and Support: Timely communication and a reliable point of contact
- Audit and Tax Readiness: Ability to coordinate with external tax and audit firms
- Track Record: Experience supporting funds at similar size, stage, and complexity
Frequently Asked Questions
What is the role of a fund administrator?
A fund administrator manages the operational, accounting, tax, and LP-facing tasks of a venture fund. They ensure accuracy, transparency, and timely execution of fund obligations.
Why do GPs need a fund administrator?
Without one, GPs risk operational errors, regulatory issues, and diminished LP trust. Fund admins allow GPs to focus on deploying capital while ensuring back-office integrity.
Does AngelList offer fund administration services?
Yes. AngelList provides tech-enabled fund administration designed for venture capital funds of all sizes. Our platform integrates fund setup, investor relations, and operations in one place.
Conclusion
Fund administrators are not optional—they are essential. Fund admins provide GPs with peace-of-mind that their back-office is running smoothly so that the GP can focus on the important stuff - like investing in the next unicorn.
Explore AngelList Fund Administration
At AngelList, our Fund Admin platform combines modern software with expert service—purpose-built for venture.
Learn how AngelList helps GPs launch and scale their venture funds with institutional-grade operations at https://www.angellist.com/fund-administration.
Disclaimer: The information contained herein is provided for informational and discussion purposes only and is not intended to be legal or tax advice nor intended to be a recommendation for any investment, service, product, or other advice of any kind.
AngelList TeamEmmett Carrier, Amberly Hendel & Meredith Luera
