Theorem Fund Services offers a unique turn-key solution to investment managers

Regardless of the systems you use, outsourcing fund administration will streamline your fund’s operations while reducing associated costs and also handle the technological demands required to provide accurate insights and guidance on your unique situations. For instance, they can leverage technology platforms to help you with audit support.

Fund administration services provide you with the ongoing support needed to leverage growth. With growth comes the launch of new funds. We introduce you to Theorem Fund Services who beat traditional way of fund administration.

Theorem Fund Services, LLC is a multi-service fund administrator that offers a unique turn-key solution to investment managers that combines institutional-level technology with strong industry experience and a deep understanding of their clients’ needs and goals. Theorem was founded on the belief that traditional fund administration platforms needed to evolve into a much more comprehensive multi-service offering. This enables an investment manager to maximize their service delivery by dramatically increasing fee efficiency and scalability. The company understands that their success depends entirely on the success of their clients and ability to develop long-term client relationships that fully support their clients in their work. “We are committed to partnering with our clients to ensure they receive the very best value combined with the highest quality service at the best price,” states Theorem.

“We are committed to fully partnering with our clients to ensure they receive the very best value combined with the highest quality service at the best price.”

In conversation with Mikhail Davidyan, Managing Member and Co-Founder

Q. What does innovation mean to Theorem Fund Services?

Innovation at Theorem Fund Services is based around our early embrace of the explosive growth within the digital asset’s class. We recognized almost immediately that existing portfolio accounting systems were not designed to handle crypto assets nor were any fund administrators truly ready to handle digital assets from a staffing perspective. At Theorem, we knew we had to rethink our product offering in both technology and staff knowledge. Our technology stack and staff knowledge and training have enabled Theorem to offer DAILY NAV services to almost 50 digital asset funds. Few, if any fund administrators, no matter their size, have been able to adapt to the explosive growth and needs of digital asset funds requiring daily liquidity as Theorem has. Additionally, we built an expertise in complex digital asset strategies ranging from DeFi, Staking, Derivatives, NFTs and venture to provide accounting services not comparable to our peers. Our goal is to continue to lead the innovation from both a technological and expertise perspectives for many years to come.

Q. How do you help your clients with your Banking Services?

Theorem provides dual-authorization and dual-signatory services to its clients as part of it Banking Services. When a fund manager transfers funds out of the bank account, Theorem plays a critical role in collecting the required supporting documentation to ensure the funds are being used for a valid reason and setting up the transfer which is then approved by the fund’s manager. Thus, the fund manager cannot complete any wire transfer without Theorem playing a role in the process. Over the past two years, Theorem has expanded its dual-authorization function to digital asset custodians. Similar to a traditional bank account, a fund manager cannot transfer digital assets from a custodian without Theorem authorizing the request.

“We have strong industry experience and a deep understanding of our clients needs and goals.”

Q. What allows TFS to stay focused on the client?

Theorem uses a single-point-of-contact model across its platform to service our clients. The Traditional Fund Administration model was always more of an ‘assembly line’ approach where functions were generally broken down into distinct groups of employees to handle. While a client may have one contact personthey speak with at the fund administrator, they may not be aware of how many times their ‘NAV package’ is handed from one person to another, one group to another. This process can be cumbersome and prone to human error whereby any error discovered along the way would force the process to begin anew. At Theorem, our clients know they have a single, dedicated service person overseeing their monthly, weekly or even daily processes through to conclusion. Of course, this person will work with a team where another member can step and take over in any instance where the primary service person is unavailable.

Q. Could you tell us about the work culture at Theorem Fund Services?

Even before COVID entered all of our lives, Theorem embraced a hybrid work model encouraging employees to help decide how they could be most effective for the firm and their positions. When COVID did impact the entire financial community and every firm needed to scramble to set up remote work environments and the ability to manage their staff remotely, Theorem simply and seamlessly moved to 100% remote. Since COVID considerations have loosened, Theorem still encourages employees to work remote as often as they see fit.  Another aspect you’ll find at Theorem is our commitment to diversity in the workplace and within the management team. Lastly, we feel that our benefits package lacks for nothing – we never want our team to feel they have anything to worry about as they plan and care for themselves and their families.

Q. Congratulations on passing $10 billion in Digital Assets under Administration. What's the company's vision for the near future?

“Vision” is a word we take very seriously. Financial markets inherently change, adapt and innovate as a rule. The reasons could be due to changes in the regulatory environment, both domestically and offshore. Or change can be due to macro-economic events like we see around the globe today. As a fund administrator representing the books and records of our clients, we realize our clients need access to their information without fail. We need to be able to adapt to their needs. Our “Vision” is to make high-touch, low cost a reality. Many firms sell this concept, yet few succeed. There are always add-on fees. We feel thatunless we proactively manage change and embrace “Vision” we will lose our position as the top fund administrator for digital asset funds.

Q. Are you planning on rolling out any new services?

With the increase in the regulations surrounding financial transactions due to the rise in financial fraud and asset misappropriation, Theorem is expanding its full service offering to provide forensic accounting and internal audit services to its clients.This unique value proposition provides our clients with access to certified and experienced professionals knowledgeable in this space. This will again be another service that our peers do not provide yet is so important to many of our clients.

Brief about Mikhail Davidyan

Mikhail Davidyan is a Managing Member and co-founder of Theorem with over 17 years of progressive professional experience. Mikhail previously held senior and management roles at several fund administrators and technology firms. He earned his B.S. degrees in Accounting and Finance from the University of Illinois at Chicago where he graduated Cum Laude. Mikhail holds an M.B.A. from Northern Illinois University, and he is a Certified Public Accountant licensed in the State of Illinois.

“We measure our success by our clients satisfaction.”