Capital Management - Transactions & Balance Impacts

Purpose

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

Key Features

Transaction Creation: Record facility or equity activity and allocate it across pledges using the Transactions workflow.
Funding Request: A principal-impacting transaction that records a draw of capital from a Capital Source. When transferred, it increases the Capital Source Balance by the Transaction Amount.
Repayment: A principal-impacting transaction that records a return of capital to a Capital Source. When transferred, it decreases the Capital Source Balance by the Transaction Amount.
Interest Payment: An interest-impacting transaction that records the payment of accrued interest owed to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.
Fee: A fee-impacting transaction that records a fee or charge paid to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.

How It Works

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 will not update balances until status is Transferred.
Select a Fund.
Select a Capital Source.
Select a Transaction Type.
Select an Effective Date. Use Effective Date 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 that will be allocated to each pledge's balance.
Select Save.

Transaction Type	Definition
Funding Request	A Funding Request is a principal-impacting Transaction that records a draw of capital from a Capital Source. When a Funding Request is posted and Transferred, it increases the Capital Source Balance by the Transaction Amount.
Repayment	A Repayment is a principal-impacting Transaction that records a return of capital to a Capital Source. When a Repayment is posted and Transferred, it decreases the Capital Source Balance by the Transaction Amount.
Interest Payment	An Interest Payment is an interest-impacting Transaction that records the payment of accrued interest owed to a Capital Provider on a Capital Source. When an Interest Payment is posted and Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.
Fee	A Fee is a fee-impacting Transaction that records a fee or charge paid to a Capital Provider on a Capital Source. When a Fee is Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only.

Impact to Pledge Calculations by a Funding Request or Repayment

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

Step-by-Step Instructions:

Go to Portfolio > Capital Management > Pledges.
In the dropdown, select the capital source that the transaction was posted against.
After a Funding Request or Repayment transaction, the following field calculations will be updated: available, pledge balance, dry powder, and current advance rate.

Field Name	Definition
Pledge	Combination of the Deal Name and Funding Source associated to the Pledge.
Outstanding Balance	Principal Balance of the Fund Allocation for Debt / Funded to Date of the Fund Allocation for Equity.
Pledge Advance Rate	The % multiplier that is expected to be advanced by the Capital Source.
Available	Pledge Advance Rate × Current Balance = Available. The amount available to be advanced from the Capital Source, based on what has been funded and repaid on the associated Funding Source.
Pledge Balance	The current amount advanced by a Capital Source's investment in a Funding Source. This represents the true balance on any given day of an investment. This balance is managed from the Capital Management page.
Dry Powder	Available − Pledge Balance = Dry Powder. Dollars that can be allocated from the Capital Source.
Current Advance Rate	Pledge Balance / Outstanding Balance = Current Advance Rate. The calculated rate at which dollars have been advanced from the financing partner. This figure is provided as a means to compare against the Pledge Advance Rate and understand what is "Available".

Best Practices

Note:
Transactions will not update balances until the status is changed to Transferred. Transactions default to Pending status when created.
Interest Payment and Fee transactions do not affect the Capital Source Balance or Pledge Allocations — they are recorded for tracking, reporting, and fund-level cost accounting purposes only.