Significant advancements in fund administration are on the horizon with the founding of Formulary by Alfia Ilicheva, who has transitioned from public markets to the private sector. After experiencing the limitations of data management at Bridgewater, one of the largest hedge funds globally, she recognized that private equity and venture capital sectors lag in accessing real-time data compared to their public counterparts.
Ilicheva's new venture has garnered attention, as Khosla Ventures leads a $4.6 million seed funding round, which was oversubscribed by three times. Participation includes notable firms such as Human Ventures and the venture capital firm of Serena Williams. This funding will enable Formulary to innovate within the fund administration space, addressing the critical need for accurate investment tracking and performance reporting.
Current fund administration solutions are split between high-touch accounting services and software providers, yet many general partners express dissatisfaction with existing options. Ilicheva aims to leverage artificial intelligence to streamline operations and improve the experience for in-house accountants, whom she endearingly refers to as “bionic accountants.” By automating data management, Ilicheva hopes to allow accountants to focus more on service rather than manual tasks.