Authored by: David Proskin, Managing Director, Integrated Solutions
Contributions by: Rafael Beck, Senior Managing Director, Integrated Solutions
In the world of asset management, particularly within hedge funds and private equity—shadow accounting has evolved from a discretionary practice to a critical control mechanism. This article defines what shadow accounting is, why it matters, and who relies on it most.
To understand its growing importance, we must look at the evolution of fund structures, investor expectations, and regulatory scrutiny. As institutional investors demand greater transparency and operational due diligence becomes more rigorous, maintaining internal books and records...