Solutions
Hedge fund
Privately pooled capital using broader, often more complex investment strategies.
No credit card. Nothing is charged until your first 30 days are over.
What this kind of fund is
The fund type the engine was built against. Multiple fee series, performance fees with high-water marks, monthly subscriptions and redemptions, and investors who expect a statement that adds up.
What the administration actually involves
This is the fund type the engine was built against, so it is the one where the fit is least ambiguous. Multiple fee series with their own terms, performance fees charged above a high-water mark, subscriptions and redemptions at a monthly price, and investors who read their statements carefully. Every rule in the calculation was checked against how a real fund of this shape actually worked, to the cent.
The order matters as much as the rates. Gross return is computed at fund level, each holding grows by it before any fee comes off, the management fee is taken on the opening value at the series rate divided by twelve, and the performance fee is charged only on what is left above that participant's own high-water mark. The mark is stored per unit and carried forward, which is the detail that decides whether an investor who joined after a drawdown is charged for someone else's recovery.
What makes it hard
A high-water mark held at fund level
If the mark is one number for the whole fund, an investor who subscribed at the bottom is charged nothing while the fund recovers, and one who subscribed at the top is charged for a gain they never had.
Fee order that quietly changes the answer
Charging the performance fee before the management fee, or on the gain including the fee itself, produces a defensible-looking number that is wrong by an amount that compounds.
Subscriptions priced at whatever was to hand
Issuing units at last month's price, or at a price computed after the fact, is the most common way a fund's unit count and its NAV drift apart.
How FundFlow fits
Performance fees with high-water marks, per unit
Charged on the excess above each participant's mark, after the management fee, at the series rate. The mark is stored per unit and carried forward, so an investor who joined after a drawdown is not charged for someone else's recovery.
Series for every set of terms
Each fee series has its own management and performance rate, its own high-water mark setting and its own koers history. A participant can hold units in more than one.
Subscriptions and redemptions at the right koers
Units are issued at the month's entry price, and the app names which month's koers that is before you commit. A full redemption redeems every unit at the close rather than trusting a typed amount.
Questions managers ask
How is the high-water mark handled exactly?
Per unit, per holding. The performance fee is charged on the excess above that participant's mark after the management fee has come off, at the series rate. The new mark is the higher of the old mark and the closing value, stored on the holding and carried into the next month. High-water marks can be switched on or off per series, and a withdrawal can optionally reset the mark.
Can one investor hold more than one series?
Yes. Each fee series has its own management and performance rate, its own high-water mark setting, its own launch price and its own koers history, and a participant can hold units in several. The waterfall runs per series and per participant in the same calculation.
Read how these parts work
The parts of FundFlow this kind of fund leans on most.
Other kinds of fund
Private equity fund
Invests in private companies, typically taking substantial ownership stakes.
How FundFlow fitsVenture capital fund
Invests primarily in startups and high-growth companies.
How FundFlow fitsPrivate credit fund
Invests by lending directly to companies or other borrowers.
How FundFlow fits
Close the same month twice and compare to the cent
Anchor a fund at the last month you closed by hand, close the next one here, and put the two fee runs side by side. That is the only test worth running.
In your first session
- Create the fund and set up each fee series with its real management and performance rates.
- Anchor an opening position with each participant's units and their current high-water mark.
- Close the next month here and against your own working, then compare every fee line.
No credit card. Nothing is charged until your first 30 days are over.