Private Fund Custody

According to the SEC, Registered Investment Advisors who have custody of their clients’ funds or securities must safeguard those funds as required by the Custody Rule. To comply with the Custody Rule, private fund issuers may use an independent qualified custodian to hold client assets. Midland Trust Company is qualified custodian that offers this service to private funds and organizations to add an intrinsic value of transparency and separation per the requirements of the Custody Rule.

Midland Trust Company provides the following ongoing custodial services:

Full custody

  • Custody of assets and cash
  • Register all assets in Midland’s name
  • Processing all new purchases/liquidations
  • Monitors all incoming and outgoing payments
  • Provide fund-level statements to all investors of the Fund

Document Custody

  • Physical custody of original documents (i.e. stock certificate)
  • No re-registration of assets
  • No cash custody or payment processing
  • Essentially a “safety deposit box”

There are many benefits of custody examination vs financial statement audit. Midland Trust Company opens accounts at Fund level to hold cash and alternative investments such as private equity/debt, VC, and real estate. We process transactions in and out of the fund and report all holdings and activity to the Fund and its participants on a quarterly basis. Midland Trust Company provides a customizable solution and pricing plan based on each Fund’s structure and needs. Our firm understands the requirements of the Custody Rule and will be responsive partners to surprise examiners and fund administrators.

Since Midland does not endorse investments, give tax, investment, or legal advice, we will never compete with you for your clients’ business and will act as a third party to your clients and their investment choices. At Midland, your relationship is important to us and you’ll be assigned a dedicated account manager who will directly work with you to provide the utmost service.

Contact Midland Trust Company today by filling out the form below. A member of our business development staff will contact you shortly to discuss your fund-level custody needs. You may also call us at (312) 767-6863.