Flows: Hedge Fund Capital Accounting (lpInterest)

Working with Hedge Funds

The following flows apply to hedge fund capital accounting:

• initial fund/offering setup (see Flows: For All Investment Vehicles)

• transfers (see Flows: For All Investment Vehicles)

• initial investments

• distributions

Initial Investments

The initial investments for a hedge fund have the following flow, with securities issued when the Asset Manager or Transfer Agent runs a close for a batch of settled shares. This flow assumes that:

• The investing org has been assigned to the fund.

• The investing org has accepted that assignment.

The Integration API refers to the initial step in subscribing as "creating an asset."

	Task	How
1	Inv - Create Asset (Lot)	../primary/asset
2	AM/TA - Reject Asset (Investment) AM - Mark Assets Batch as Accepted	../primary/{assetId}/reject ../primary/batch-mark-accepted
3	Inv - Mark Assets Batch as Wired	../primary/batch-mark-wired
4	AM/TA - Mark Assets Batch as Settled	../primary/batch-mark-settled
5	AM/TA - Run Close	../primary/run-close

Distributions

If a hedge fund is configured for distributions, the event can be started by either the general partner or the transfer agent and both parties must approve.

If there is no transfer agent, then the general partner must still approve.

	Task	How
1	AM/TA - Initiate Distribution	../capital-events
2	AM/TA - Approve/Reject Distribution	../capital-events/{capitalEventId}/approve
		../capital-events/{capitalEventId}/reject
3	AM/TA - Settle Distribution	../capital-events/{capitalEventId}/assets/settle
4	AM/TA - Close Distribution	../capital-events/{capitalEventId}/close