---
title: "Capital Management - Creating Funds, Capital Sources & Pledges"
slug: "capital-management-overview"
updated: 2026-05-05T16:59:04Z
published: 2026-05-05T16:59:04Z
canonical: "help.getbuilt.com/capital-management-overview"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.getbuilt.com/llms.txt
> Use this file to discover all available pages before exploring further.

# 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**

1. **Fund Creation**: Create funds to track fund-level transactions, including funding requests, repayments, interest, and fees.
2. **Capital Source Setup**: Add debt facility and equity capital sources, linking them to a fund and capturing key terms like capital provider and amount.
3. **Deal Funding Integration**: Connect a fund to a deal's Capital Stack by configuring a participated, syndicated, or internally funded source.
4. **Pledge Management**: Link capital sources directly to deal funding sources via pledges, with terms such as advance rate and spread.
5. **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:

1. From the **Portfolio** page, select **Capital Management**.
2. Select **+ Create New**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(714).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
3. Select **Fund**.
4. Enter the required fund details.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(715).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
5. Select **Save**.

---

#### Creating a Capital Source (Debt Facility)

Step-by-Step Instructions:

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

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(716).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
5. Select **Save**.

---

#### Creating a Capital Source (Equity)

Step-by-Step Instructions:

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

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(717).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
5. 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:

1. From the **Portfolio** page, select **Deals**.
2. Open the deal you want to finance.
3. Open **Capital Stack**.
4. Create or edit a funding source, or confirm one already exists.
5. Navigate to the **Structure** section.
6. 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**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(718).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
7. 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:

1. In the deal, open **Capital Stack**.
2. Select the **Pledges** tab.
3. Select **Add new pledge**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(719).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
4. Select the capital source (facility or equity).
5. Enter pledge terms such as advance rate and spread, if shown.
6. 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:

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

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(720).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)

---

#### Creating Capital Source Transactions

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

Step-by-Step Instructions:

1. Go to **Portfolio** > **Capital Management** > **Transactions**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(721).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
2. Select **Create transaction**.
3. Note that **Status** defaults to **Pending**. Transactions do not update balances until the status is changed to **Transferred**.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(722).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
4. Select a **Fund**.
5. Select a **Capital Source**.
6. Select a **Transaction Type**.
7. Select an **Effective Date**. Use this field to record when a transaction is effective — past, present, or future.
8. Enter the **Transaction Amount**.
9. In **Pledge Balance**, select one or more pledges.

![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(723).png?sv=2026-02-06&spr=https&st=2026-11-07T19%3A13%3A24Z&se=2026-11-07T20%3A13%3A24Z&sr=c&sp=r&sig=nQkBaOzXh81ZWxD0v%2FNjHYjd9Fr8CbN7PwfP%2Fu0LVQg%3D)
10. Enter the amount of the transaction to allocate to each pledge's balance.
11. 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]
> 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**.