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.
Name | Description | Example |
Earnest Money Deposit | Amounts paid to confirm a contract | |
Investment Distribution | 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 |
|
Investor Deployments | The deployment of investor contributions to the fund’s equity | |
Investor Redemptions | 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.