Solutions
Private credit fund
Invests by lending directly to companies or other borrowers.
No credit card. Nothing is charged until your first 30 days are over.
What this kind of fund is
A fund earning interest rather than capital gains, where the administration is mostly about recognising income in the right period and getting each investor's share of it right.
What the administration actually involves
A credit fund's return arrives as income rather than as a price change, which moves the whole administrative problem into one question: is this in the right period? Interest received, fees charged, an expense paid a week late, all of it has to land in the month it belongs to, because that is what determines each investor's share of the return.
Income and expenses are booked against the month being closed, under a category taxonomy you define per fund, and the engine folds them into that month's return. Each investor's share is then derived rather than typed: ownership shares, unit counts and values all come out of the calculation, so an allocation cannot be out by a rounding difference. Four checks run before the month can be locked, comparing bank and broker balances against NAV, holdings against fund assets, and fees calculated against fees paid.
What makes it hard
Income booked when it was noticed
Interest that lands in the wrong month moves return between periods, and therefore between the investors who held units in each of them.
Allocations typed rather than derived
Working out each holder's share of the month's income by hand introduces rounding differences that do not reconcile to the total, and the difference has to go somewhere.
Cost categories invented as you go
Without a fixed taxonomy, the same expense is classified two ways in two months and the year's cost analysis is unusable.
How FundFlow fits
Income and costs in the period they belong to
Book income and expenses against the month being closed, with a category taxonomy per fund, and the engine folds them into the month's return.
Each investor's share, derived
Ownership shares, unit counts and values are computed, never typed, so an allocation cannot be out by a rounding difference.
Checks before you lock
Bank and broker balances against NAV, holdings against fund assets, and fees calculated against fees paid.
Questions managers ask
Can we set our own income and cost categories?
Yes. The category taxonomy is per fund, so you define the income and expense categories your fund actually uses, and they stay consistent month to month. Each entry is booked against the month being closed and feeds that month's return.
How are investors’ shares of the income worked out?
They are computed, not entered. Income and expenses go into the fund's return for the month, each holding grows by that return before fees, and each holder's value is units times the closing koers of their series. Nothing about the split is typed, so it cannot fail to reconcile to the fund total.
Read how these parts work
The parts of FundFlow this kind of fund leans on most.
Other kinds of fund
Hedge fund
Privately pooled capital using broader, often more complex investment strategies.
How FundFlow fitsPrivate 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 fits
Book one month of income and check the split
Set the fund up, enter a real month of interest and costs, close it, and check each investor's share against your own working.
In your first session
- Create the fund and define the income and expense categories your book actually uses.
- Anchor an opening position, then book a real month of interest received and costs paid.
- Close the month, let the four checks run, and compare each holder's share of the income to your own figures.
No credit card. Nothing is charged until your first 30 days are over.