There are many different investment strategies and vehicles available to investors. One such strategy is the use of a fund of funds, which allows investors to diversify their investments across multiple funds. Another key concept is value add, which refers to the added value that fund managers can bring to a particular investment.
Below are the most common type of transactions that affect these fund types for which accounting support is required.
Earnest Money Deposit
Amounts paid to confirm a contract
Distribution amounts received from an underlying investment owned by the fund
Investment Purchase - Funds, Equity, Direct Real Estate
Investment corresponding to an ownership interest in a fund
Investment corresponding to purchase of stocks of an entity
Investment corresponding to an ownership interest in a specific property
Investment Sale - Real Estate Owned
Sale of an REO property
Investor Contributions (new and additional funds)
New or additional investor contributions into the fund
The deployment of investor contributions to the fund’s equity
The withdrawal of investor capital from the fund
Marketing / Advertising expenses
Cost incurred in promoting the operations of the fund
Professional fees - Accounting, Tax and Audit
Costs incurred in employing accounting services including bookkeeping, tax preparation, and auditing
Professional fees - Legal
Costs incurred in availing legal services
If you cannot find what you are looking for, please refer to our Master List for additional transactions and sample support available here.