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The Oxford Way

“The value of an idea lies in the using of it.”

— THOMAS EDISON

The Advantages of having an in-house fund administration team

“What does Private Market Services do?” is a question we are frequently asked. Though the answer is simple, it encompasses a world of intricate financial activities that lay just beneath the surface. In essence, Private Market Services serves as the in-house Fund Administrator for all the Oxford-branded investment vehicles, which combined include 56 entities. Oxford-branded investment vehicles include:

  1. Savile Row®
  2. Berkshire, LLC
  3. Regent Street
  4. Mayfair Capital PartnersTM

From an accounting standpoint, Private Market Services keeps the financial books and records in meticulous order for each LLC within these investment vehicles, including:

  1. Compiling comprehensive financial packets that encompass balance sheets, income statements and general ledger details, which serve as the foundation for calculating the capital value of individual investors as reflected in their statements.
  2. Executing capital calls and scheduling distributions.
  3. Collaborating closely with tax partners on the preparation of essential K-1 documents.

Working in tandem with the accounting side is the operations group, responsible for ensuring that each LLC operates in line with the Operating Agreement and  is compliant with the rigorous standards of the SEC, NFA and IRS. This includes:

  1. Coordinating the underlying investments made by each LLC.
  2. Managing client deliverables including capital call notices, distribution letters and monthly statements.

You might wonder, “Why handle all this in-house when third-party administrators are available?” There are several compelling reasons:

  1. Control is a significant advantage. By maintaining these functions in-house, Oxford retains complete say over branding and processes, without the need to conform to external guidelines.
  2. Security is another crucial factor. In-house management of client information minimizes exposure to external risks.
  3. Cost savings is the most significant benefit for our investor clients. Third-party administrators, such as State Street and Citco, often charge between 10-20 basis points, depending on the level of service. In contrast, the average cost of the Private Market Services team is just four basis points, substantially reducing the cost burden on each LLC, which translates into material savings for their capital accounts.

Some might consider Private Market Services to be the unsung hero of Oxford’s investment vehicles, skillfully managing a vast array of financial tasks. Beyond the high-level overview provided here, Private Market Services is the linchpin that ensures smooth financial operations, regulatory compliance and cost savings.