Funds > Capital calls

The function Capital calls is part of the Funds module and is started through menu Administration> Funds.

Detailed information about previous capital calls and distribution notices can be viewed in the funds manager.

With a capital call the fund manager calls the funds participants for an amount.

The amount requested can be used for fund costs and for new investments.

The participant's share of the call is calculated based on the percentage of the participant's commitment in relation to the the total commitment of all participants.

At the first call that the participant joins the fund, the participant's requested amount will not be lower than the initial threshold set for the fund.

The result of a call can be sent by e-mail to all participants.

New participants share in earlier capital calls

By default when new participants enter a fund after the first call is made, they will be included in the next capital call.

Regardless the date a participant joins the fund, the participant will share in all the costs from the fund start date.

At each call, the total costs are redistributed among all participants.
The total amount called remain unchanged.

This can result in a shift of capital to the deposit of the participants already included in previous calls (active participants).

Create a seperate capital call for new participants

When the option 'Create a seperate capital call for new participants' is set at the funds settings, the entry of new participants will not result in a shift of capital to the deposit of the participants already included in previous calls.
Amounts called in earlier calls are remain unchanged.

When a new call is created and new participants are detected the new call will only be for the new participants. It is not possible to enter an amount for the call instead the amount per new participants is calculated by the system.

Each new participant is asked an amount with which, based on his commitment,he participates in an equal % over all previous calls as if he was already a participant in the fund at the time of those calls.

Manual correction participant's share

In the Correction tab, the automatically calculated capital call amount per participants can be manually adjusted.

It is not possible to make corrections in a separate call for new participants.

Corrections can be made for several participants at the same time.
There are two different calculation methods for each correction:

1.Divide the remaining amount over the other participants.
In this case, the total call amount does not change.
The remaining amount will be divided over the other participants unless they also have been corrected.

2.Do not divide the remaining amount among the other participants.
The total call amount is changed by the same amount as the participant correction.
The call amount of the other participants does not change

Corrections are only temporary.

The next call will automatically recalculate the costs and investment amounts with the result that all participants share pro rata based on their commitment.

Tab page Selection

This contains the initial settings of the call.

Fund

The fund the capital call is for.

Date

Date of the capital call.

Description

If this field is left blank it will be filled automatically with the name of the fund followed by the text "Capital call" and the date of the call.

Management fee

The management fee is calculated on a yearly bases as a percentage of the total commitment of all participants for the period last call until current call.

The percentage and the calculation method to be used, are set at the funds settings.

The calculated fee can be altered manually.

Other fees are:

-Commitment fee

-Start-up expenses

-Fund expenses

The amount of these fees should be entered manually per call.

Investment amount

The total amount you want to request for investments.

After a distribution notice, no more investments can be done.

Capital call

The capital call amount is calculated as the sum of all fee amounts and the investment amount.

<Report>

An Excel report is created with a detailed sheet per previous capital calls and distribution notices.

Tab page Correction

The screens shows the calculated capital call amount per participant based on the information on the Selection tab.

Correction

The capital call amount which will be used in the proposal.

The amount per participant can be changed.
The total amount however will be the same.
The total amount of the corrections is divided over the participants whose amount is not changed.
For this recalculation the participant's share is the percentage of the participant's commitment in relation to the total commitment of all not changed participants.

<Report>
An Excel report is created with a detailed sheet per previous capital calls and distribution notices including the new capital call.
For the new call the call details are based on the calculated capital call amounts.

Tab page Proposal

The proposal screen shows how the capital call is divided over the participants based on the Correction amounts in the Correction tab.

If changes have been made in the corrections tab, the costs and the invested amount per participant are adjusted in the same proportion as the capital call amount has been adjusted.

Commitment

The maximum amount a participant agreed to invest.

Pro rata

The percentage of the participant's commitment in relation to the the total commitment of all participants.

Total expenses

The participant's share of all costs.

Investment amount

The participant's share of the Net amount.

Capital call

The sum of expenses and net amount.

Deposit changes

In case of a amount in deposit, the call will be paid from the deposit as far as possible.

Because of an initial threshold call or a re-distributing of expenses an amount can be add to the deposit.

Deposit remaining
The remaining deposit amount after the call is processed.

Requested amount

The new amount that is requested from the participant.

An Excel report is created with a detailed sheet per previous capital calls and distribution notices including the new capital call.
For the new call the call details are based on the correction capital call amounts.

More information about the report details are described in the funds manager.