Capital Management - Managing Funds, Capital Sources & Pledges

Purpose

Capital Management allows you to track fund-level transactions (funding requests, repayments, interest, and fees) while simultaneously allocating those transactions across Deals via Pledges.

For Owners & Lenders: Capital Management allows users to model Funds and their associated Investor Equity commitments. Users can deploy that capital across multiple Deals and simultaneously track it at a Portfolio Level.

For Private Credit: Capital Management connects portfolio, facility, and deal servicing data into a single source of truth, allowing users to manage leverage on Deals. Dry powder calculates automatically based on advance rates, in real time. Your team knows exactly what capital is available.

How It Works

1. Creating a Fund

What is a Fund? A Fund is a legally structured investment vehicle that aggregates capital from one or more investors and deploys that capital according to a defined investment strategy. A Fund serves as the governing entity under which individual investments—such as credit facilities or equity positions—are originated, structured, tracked, and managed, with its own capital commitments, return profile, reporting obligations, and lifecycle.

Step-by-Step Instructions:

From the Portfolio page, select Capital Management.
Select + Create New.
Select Fund.
Enter the required fund details.
Select Save.

Fund Fields

Field Name	Type	Required	Definition
Fund Name	String	Yes	The name assigned to the Fund entity.
Fund Type	Enum	Yes	Open Ended, Closed Ended, Non Traded REIT, Publicly Traded REIT, or Other.
Group	Enum	Yes	The organizational group to which the fund belongs.
Currency	Enum	Required	The currency in which the Fund is managed.
Maximum Funding Amount	Currency	No	The maximum amount of dollars the fund will hold at any given time.
Status	Enum	No	Active, Inactive, or Closed.
Closing Date	Date	No	Date when the fund closes or becomes effective.
Maturity Date	Date	No	The expiration date of the fund's operational term.
External Unique Identifier (EUID)	String	No	Unique identifier for integration across platforms.

2. Creating an Equity Capital Source

What is an Equity Capital Source? An Equity Capital Source is a defined equity vehicle within a Fund that represents the ownership capital deployed into Deals. Depending on how a client is organized, an Equity Capital Source may represent a specific investor (e.g., an insurer or LP tracking its own commitment, balance, and allocation percentage on a Deal), a capital partner or financing program (e.g., a table-funded partner or an A/B-note program), or a roll-up bucket used to classify and aggregate ownership across entities, profit centers, or vintages. Equity Capital Sources carry their own economic terms (commitment amount, commitment date, and return hurdles) and carry balances at the Funding Source allocation grain.

Step-by-Step Instructions:

In Capital Management, select + Create New.
Select Equity.
Select the fund the equity belongs to.
Enter the required equity details.
Select Save.

Equity Capital Source Fields

Field Name	Type	Required	Definition
Classification	Enum	Yes	Set to Equity.
Type	Enum	Yes	e.g., Investor Allocation.
Fund	Enum	Yes	The Fund under which this Equity is committed.
Capital Provider	Enum	Yes	The Organization providing capital.
Name	String	Yes	e.g., Limited Partner's Equity.
Amount	Currency	Yes	Maximum dollar amount available.
Commitment Date	Date	No	When the capital provider formally committed.
Hurdle 1 / Hurdle 2 / Hurdle 3	String	No	Tiered return thresholds.
Limit	String	No	Contractual deployment limits.
External Unique Identifier (EUID)	String	No	Unique identifier for integration.

3. Creating a Facility Capital Source

What is a Facility Capital Source? A Facility is a source of debt that a Fund borrows from a Lender to apply leverage to its Deal portfolio—such as a warehouse line of credit, repo facility, or subscription facility. Leverage is applied against assets to amplify the return on a Fund's equity. A Facility has its own economic terms (commitment amount, advance rate, interest rate, fees, recourse, and maturity), and the leverage it provides is allocated to individual Deals through Pledges.

Step-by-Step Instructions:

In Capital Management, select + Create New.
Select Facility.
Select the fund(s) the facility belongs to.
Enter the required facility details.
Select Save.

Facility Capital Source Fields

Field Name	Type	Required	Definition
Classification	Enum	Yes	Set to Facility.
Type	Enum	Yes	Category of facility.
Fund(s)	Enum	Yes	Fund(s) under which the facility is structured.
Capital Provider	Enum	Yes	The Organization providing money.
Name	String	Yes	e.g., Warehouse Line of Credit.
Amount	Currency	Yes	Maximum dollar amount available.
This is a Revolving Facility	Boolean	Yes	Indicates if facility is revolving.
Closing Date	Date	No	When the facility officially closes.
Maturity Date	Date	No	When the facility matures.
Annual Fee	Percentage	No	Recurring annual fee.
Upfront Fee	Percentage	No	One-time fee at closing.
Exit Fee	Percentage	No	Fee at termination or payoff.
Interest Type	Enum	No	Fixed or Floating.
Accrual Method	Enum	No	e.g., 30/360, actual/360.
Current Interest Rate	Percentage	No	Annualized percentage rate.
Index	Array	Yes	Base index (LIBOR, SOFR, Prime, etc.).
Current Index Rate	Percentage	No	Most recent index rate.
Interest Spread	Percentage	No	Margin added to index.
Cap & Floor Method	Enum	No	Application method for cap/floor.
Floor Percentage	Percentage	No	Minimum allowable rate.
Cap Percentage	Percentage	No	Maximum allowable rate.
Cap Expiration Date	Date	No	When cap agreement expires.
Interest Rate (Fixed)	Percentage	No	Fixed rate percentage.
Rate Lock Index	Lookup	No	Index at underwriting.
Rate Lock Spread	Percentage	No	Margin at underwriting.
Rate Lock Effective Date	Date	No	When fixed rate was locked.
Max Advance Rate	Percentage	No	Maximum advance percentage.
Nonuse Hurdle %	Percentage	No	Minimum utilization requirement.
Limit(s)	Array	No	Contractual facility limits.
External Unique Identifier (EUID)	String	No	Unique identifier for integration.

4. Tying a Fund to a Deal's Funding Source

Connect a Fund to a Deal by setting up your Funding Source and assigning it internal allocations backed by a Fund.

Step-by-Step Instructions:

From the Portfolio page, select Deals.
Open the deal you want to finance.
Open Capital Stack.
Create (or edit) a funding source, or confirm one already exists.
Navigate to the Structure section.
To the question "Is this funding source participated, syndicated, or internally funded?" select one of the Yes options.
In Allocations, select Internal Allocation and choose a Fund.
Any Equity Capital Source associated with that Fund will now show up as a selectable option.

5. Creating a Pledge (Link a Capital Source to a Deal)

What is a Pledge? A Pledge is the structured terms of capital from a Facility to a specific Funding Source on a Deal. It represents the designation of how much of a Deal's outstanding principal balance is financed by a particular Facility, based on agreed terms such as advance rate, eligibility criteria, or borrowing base limitations. A Pledge does not represent a separate borrower-facing cash flow. Instead, it establishes the linkage between Asset-level activity and Fund-level financing, enabling accurate reporting of balances, availability, and levered performance metrics without altering underlying Deal transactions.

Step-by-Step Instructions:

In the deal, open Capital Stack.
Select the Pledges tab.
Select Add New Pledge.
Select the Capital Source (Facility).
Enter pledge terms.
Select Save.

Pledge Fields

Field Name	Type	Required	Definition
Capital Source	Enum	Yes	Facility or Equity being pledged.
Pledge Advance Rate	Percentage	Yes	% expected to be advanced. Pledge Advance Rate × Outstanding Commitment = Pledge Amount.
Spread	Percentage	No	Interest spread above reference index.
Minimum Spread	Percentage	No	Lowest allowable spread.
Maximum Spread	Percentage	No	Highest allowable spread.
Upfront Fee	Percentage	No	One-time fee at inception.
Maximum Advance Rate	Percentage	No	Contractual house limit advance rate.
Pledge Amount	Currency	No	Currency amount of committed capital. Calculated.
Current Advance Rate	Percentage	No	% actually advanced. Calculated.
Pledge Balance	Currency	No	Current balance on any given day. Calculated.
External Unique Identifier (EUID)	String	No	Unique identifier for integration.

Viewing Pledges

On a Deal: Go to Capital Stack > Pledges to view all pledges tied to the deal's funding sources. See Pledge Amount, Available, Pledge Balance, Dry Powder, and Current Advance Rate.
In Capital Management: Go to Portfolio > Capital Management > Pledges to view all pledges across your portfolio. Filter by Capital Source as needed.

6. Posting Capital Source Transactions

What is a Transaction? A Transaction is a debit or credit recorded against a Capital Source that ledgers the movement of money with the Capital Providers for a Facility or Equity. Transactions are the mechanism by which the Capital Source Balance is calculated over time. Principal-Impacting Transactions (Funding Requests and Repayments) maintain the Capital Source Balance, while Interest Payments and Fees are recorded for tracking and reporting only.

Transaction Types

Type	Impact	Purpose
Funding Request	Principal-Impacting	Records a draw of capital from a Capital Source. Increases the Capital Source Balance.
Repayment	Principal-Impacting	Records a return of capital to a Capital Source. Decreases the Capital Source Balance.
Interest Payment	Interest-Impacting	Records the payment of accrued interest owed to a Capital Provider. Does not affect Capital Source Balance.
Fee	Fee-Impacting	Records a fee or charge paid to a Capital Provider. Does not affect Capital Source Balance.

Step-by-Step Instructions:

Go to Portfolio > Capital Management > Transactions.
Select Create Transaction.
Status will default to Pending. Transactions will not update balances until status is Transferred.
Select a Fund.
Select a Capital Source.
Select a Transaction Type (Funding Request, Repayment, Interest Payment, or Fee).
Select an Effective Date. Use Effective Date to record when a transaction is effective (past, present, or future).
Enter the Transaction Amount.
In Pledge Balances, select one or more pledges and enter the amount of the transaction allocated to each pledge's balance.
Optional: Add External Memo (external-facing) or Internal Note (internal-facing).
Select Save.

Transaction Fields

Field Name	Type	Required	Definition
Status	Enum	Yes	Pending or Transferred. Balances update when Transferred.
Fund	Enum	Yes	The Fund this transaction belongs to.
Capital Source	Enum	Yes	Facility or Equity being transacted.
Transaction Type	Enum	Yes	Funding Request, Repayment, Interest Payment, or Fee.
Effective Date	Date	Yes	When the transaction is effective. Can be backdated.
Transaction Amount	Currency	Yes	Amount of the transaction.
External Memo	String	No	External-facing note shared with parties.
Internal Note	String	No	Internal-facing note not shared externally.
Pledge	String	No	Deal Name and Funding Source.
Allocation	Currency	No	Amount allocated to pledge.

Viewing Transactions: Go to Portfolio > Capital Management > Transactions to view all Capital Source Transactions across your portfolio. See Status, Transaction Type, Fund, Capital Source, Date, Created By, Transaction Amount, and Allocated Amount.

Core Concepts

Funding Source Allocation: A Funding Source Allocation is a deal-scoped division of a structured Funding Source that represents how the Funding Source's commitment is backed. Funding Source Allocations are used when a Funding Source is participated, syndicated, or otherwise divided across multiple backing organizations or internal equity sources. A Funding Source Allocation is backed by either a Capital Provider Organization or an Equity Capital Source associated with a Fund. This allocation is the transaction and balance grain for the Funding Source.

Fund Allocation: A Fund Allocation is the deal-scoped Fund-level exposure derived from Funding Source Allocations backed by Equity Capital Sources associated with the same Fund. It represents the Fund's aggregate commitment and balance position for a specific Funding Source on a Deal. Fund Allocations can be pledged against by Facilities, enabling leverage, utilization, availability, and financing balances to be tracked at the Fund level without changing underlying Funding Source transaction accounting.

Benefits

Dedicated Ledger for Fund-Level Transactions: Direct transaction inputs (draws, repayments, interest, fees) at the fund/facility level, separate from deal-level activity.
Explicit Pledge & Allocation Management: Allocate and reconcile facility funding across deals without artificial entries.
API Transaction Import & Manual Entry: Full support for fund-level transaction posting.
Improved Reporting: Fund-level transaction activity and balances.