---
title: Fund of Funds & Value Add
description: This document outlines the most common transactions affecting Funds of Funds and Value Add Investment funds.
---

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# Fund of Funds & Value Add

## This document outlines the most common transactions affecting Funds of Funds and Value Add Investment funds.

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 | [Earnest Money Deposit.pdf](https://support.verivest.com/hubfs/Earnest%20Money%20Deposit.pdf?hsLang=en) |
| Investment Distribution | Distribution amounts received from an underlying investment owned by the fund | [Investment Distribution.pdf](https://support.verivest.com/hubfs/Investment%20Distribution.pdf?hsLang=en) |
| 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 | [Investments Purchase - Funds, Equity, Direct Real Estate.pdf](https://support.verivest.com/hubfs/Investments%20Purchase%20-%20Funds%2c%20Equity%2c%20Direct%20Real%20Estate%20(1).pdf?hsLang=en) |
| Investment Sale - Real Estate Owned | Sale of an REO property | [Investment Sale - Real estate owned.pdf](https://support.verivest.com/hubfs/Investment%20Sale%20-%20Real%20estate%20owned.pdf?hsLang=en) |
| Investor Contributions (new and additional funds) | New or additional investor contributions into the fund | [Investor Contribution - New.pdf](https://support.verivest.com/hubfs/Investor%20Contribution%20-%20New.pdf?hsLang=en)   [Investor Contribution - Additional Contribution.pdf](https://support.verivest.com/hubfs/Investor%20Contribution%20-%20Additional%20Contribution.pdf?hsLang=en) |
| Investor Deployments | The deployment of investor contributions to the fund’s equity | [Investor - Deployments.pdf](https://support.verivest.com/hubfs/Investor%20-%20Deployments.pdf?hsLang=en) |
| Investor Redemptions | The withdrawal of investor capital from the fund | [Investor Redemptions.pdf](https://support.verivest.com/hubfs/Investor%20Redemptions.pdf?hsLang=en) |
| Marketing / Advertising expenses | Cost incurred in promoting the operations of the fund | [Marketing-Advertising Expenses.pdf](https://support.verivest.com/hubfs/Marketing-Advertising%20Expenses.pdf?hsLang=en) |
| Professional fees - Accounting, Tax and Audit | Costs incurred in employing accounting services including bookkeeping, tax preparation, and auditing | [Professional fees - Accounting, Tax and Audit.pdf](https://support.verivest.com/hubfs/Professional%20fees%20-%20Accounting%2c%20Tax%20and%20Audit.pdf?hsLang=en) |
| Professional fees - Legal | Costs incurred in availing legal services | [Professional Fees - Legal.pdf](https://support.verivest.com/hubfs/Professional%20Fees%20-%20Legal.pdf?hsLang=en) |

 

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