Capital Management - Creating Funds, Capital Sources & Pledges

Purpose

Capital Management enables you track fund-level transactions — including funding requests, repayments, interest, and fees — while simultaneously allocating those transactions across deals via Pledges.

Key Features

Fund Creation: Create funds to track fund-level transactions, including funding requests, repayments, interest, and fees.
Capital Source Setup: Add debt facility and equity capital sources, linking them to a fund and capturing key terms like capital provider and amount.
Deal Funding Integration: Connect a fund to a deal's Capital Stack by configuring a participated, syndicated, or internally funded source.
Pledge Management: Link capital sources directly to deal funding sources via pledges, with terms such as advance rate and spread.
Transaction Tracking: Record fund-level transactions and allocate amounts across one or more pledges.

How It Works

Capital Management is accessed from the Portfolio page. The sections below walk through each workflow in sequence.

Creating a Fund

Step-by-Step Instructions:

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

Creating a Capital Source (Debt Facility)

Step-by-Step Instructions:

In Capital Management, select + Create New.
Select Facility.
Select the fund the facility belongs to.
Enter the required facility details, including name, capital provider, amount, and any applicable terms.
Select Save.

Creating a Capital Source (Equity)

Step-by-Step Instructions:

In Capital Management, select + Create New.
Select Equity.
Select the fund the equity belongs to.
Enter the required equity details, including name, capital provider, amount, and any applicable terms.
Select Save.

Connecting a Fund to a Deal's Funding Source

Set up the deal funding source you want to finance with your fund before creating pledges.

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.
For the question "Is this funding source participated, syndicated, or leveraged (not through a participation or syndication)?" select the appropriate Yes option: Yes, participated; Yes, syndicated; or Yes, my note is allocated and/or financed by internal capital sources.
In Allocations, choose Internal Allocation and select a Fund. Any capital source associated with that fund will appear as an option when creating a pledge.

Creating a Pledge

A pledge links a capital source (facility or equity) to a specific deal funding source.

Step-by-Step Instructions:

In the deal, open Capital Stack.
Select the Pledges tab.
Select Add new pledge.
Select the capital source (facility or equity).
Enter pledge terms such as advance rate and spread, if shown.
Select Save.

Viewing Pledges and Balances

Use Capital Management to review pledges and metrics tied to a facility or equity capital source.

Step-by-Step Instructions:

Go to Portfolio > Capital Management > Pledges.
In the dropdown, select the facility or equity capital source.
Select the Pledges tab.
Review the pledge details and metrics, including pledge balance, available amount, dry powder, and outstanding balance.

Creating Capital Source Transactions

Use transactions to record facility or equity activity and allocate it across pledges.

Step-by-Step Instructions:

Go to Portfolio > Capital Management > Transactions.
Select Create transaction.
Note that Status defaults to Pending. Transactions do not update balances until the status is changed to Transferred.
Select a Fund.
Select a Capital Source.
Select a Transaction Type.
Select an Effective Date. Use this field to record when a transaction is effective — past, present, or future.
Enter the Transaction Amount.
In Pledge Balance, select one or more pledges.
Enter the amount of the transaction to allocate to each pledge's balance.
Select Save.

Benefits

Consolidates fund-level tracking and deal-level allocation in one place, reducing manual reconciliation.
Supports both debt facility and equity capital sources, giving flexibility across deal structures.
Pledge-based allocation ensures every transaction is tied to specific deals, maintaining a clear audit trail.
Effective Date flexibility allows teams to record past, present, and future transactions accurately.

Best Practices

Note:
Before creating a pledge, ensure the deal's funding source is configured with internal allocation and a fund is selected. Capital sources will only appear as pledge options once this connection is made.
Transactions remain in Pending status by default and will not update pledge balances until the status is updated to Transferred.