January 12, 2026
Head of Marketing
In private markets, operational precision is everything. As fund structures, fees, and allocation methodologies grow more complex, the risks of manual or inconsistent calculations grow right alongside them.
Over the past few years, the U.S. Securities and Exchange Commission (SEC) has issued several enforcement orders highlighting issues in how private market firms manage allocations, expenses, and fee calculations. These cases offer a glimpse into how operational complexity can turn into compliance exposure.
But they are just that, a glimpse. SEC actions typically arise from limited examinations or specific investor indications, and in a world of highly bespoke fund economics, many calculation errors may never be identified or disclosed. The public cases likely represent only a small fraction of the underlying risk.
The details of the cases differ, but the underlying theme is the same: operational complexity can become a compliance challenge when calculation logic isn’t fully controlled or transparent.
Since 2019, SEC cases citing allocation, valuation, or fee-calculation deficiencies have collectively resulted in millions in repayments and penalties. For firms that pride themselves on investor trust and fiduciary diligence, the message is clear: operational excellence matters.
Recent SEC orders describe issues such as:
Many SEC findings emphasize the importance of accurate calculations, clear policies, and systems capable of documenting how allocations and fees are determined. These matters often stem from process or oversight weaknesses that could arise in any growing organization.
Private market funds face increasing regulatory and investor expectations for transparency in allocations, fee structures, and expense-sharing. Yet many firms still rely on fragmented spreadsheets or semi-manual workflows to manage complex calculation logic.
Even minor inconsistencies - an omitted impairment, a duplicated offset, or a valuation assumption that’s applied differently across vehicles - can create ripple effects across investors and funds. What begins as an operational issue can quickly evolve into a compliance or fiduciary concern.
“Operations with procedural breaks, such as a spreadsheet doing some calculations needed in the process do not only reduce scalability, but increase the compliance risk. Manual mitigations of these breaks are expensive and slow and add other risks.” Gregor Kreuzer, Co-Founder & CPO at qashqade
The reality is simple: manual precision doesn’t scale.
As the SEC continues to emphasize governance and accuracy in operational processes, leading fund managers are investing in technology to standardize and automate key calculations.
Platforms like qashqade are designed to support that shift, bringing allocations, waterfalls, and fee calculations into a single controlled environment. With configurable logic, built-in transparency, and auditability, qashqade helps firms reduce operational risk while strengthening investor confidence.
It’s not just about efficiency. It’s about being able to show, with certainty, how every number was derived and that it can stand up to scrutiny.
The past few years have made one thing clear: operational integrity is no longer just an internal best practice; it’s a regulatory expectation.
As fund structures evolve, firms that invest in strong operational systems today will be better positioned to demonstrate compliance, protect investors, and maintain trust tomorrow.
Because in private markets, even small errors can have a very large price tag.
To find out how qashqade can help you get it right the first time, book a meeting with our team!
