Caravel Capital uses these service providers to ensure accuracy, compliance, and transparency.
A prime brokerage is a bundled group of services that investment banks and other financial institutions offer to hedge funds and other large investment clients that need to be able to borrow securities or cash in order to engage in netting to achieve absolute returns.
The services provided under prime brokering include securities lending, leveraged trade execution, and cash management, among other things. Prime brokerage services are provided by most of the largest financial services firms, including Goldman Sachs, UBS, and Morgan Stanley, and the inception of units offering such services traces back to the 1980s. (https://www.investopedia.com/terms/p/primebrokerage.asp)
A fund administrator is an outsourced third-party service provider that protects the interests of investors by independently verifying the assets and valuation of the fund. Caravel Capital estimates the NAV (Net Asset Value) at month’s-end and then the Fund Administrator provides the approved NAV mid-month.
The main job of the auditor is to audit the accounting practices of the hedge fund. … Usually the auditor will work with the hedge fund administrator as the administrator is the one who has prepared the fund’s financial statements. (https://hedgefundlawblog.com/hedge-fund-service-providers-overview.html)