Only this pageAll pages
Powered by GitBook
1 of 1

Platform Terminology and Concepts

Loading...

Glossary

account

  • On the Corastone platform, usually refers to the investment account associated with an investor.

advisor

  • Someone who assists investors by helping them set up their accounts and recommending securities for them to purchase.

API

  • On the Corastone platform, usually refers to the REST API for integrations, which provides the primary method of communication between back-office applications and the Corastone platform.

asset (digital)

  • A representation of an investment in a security. Creating an asset on the Corastone platform means subscribing to a fund offering.

asset management

  • The practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.

asset manager

  • An investment manager having a particular investment strategy and who raises capital to deploy that strategy and generate a return for their clients.

assignment

  • The designation of an organization to be a service provider or distribution partner for a fund. The Corastone platform currently recognizes the following assignments: service provider and exclusivity. Fund Administrators are assigned to be service providers for a fund. Distribution artners are assigned to be selling firms for a fund.

blockchain

  • A system in which a record of transactions is maintained across computers that are linked in a peer-to-peer network.

busted

  • Term describing a contingent offering that has not reached its stated minimum by a defined end date.

capital call

  • The means of acquiring funding for an LP Interest fund if funding is set up to occur after the subscription period.

capital event

  • Term describing capital calls and distributions on the Corastone platform.

contingent

  • The sale of a security for which the specifics of the sale are dependent on future events. For example, a minimum investment amount must be met by the offering or all funds will be returned to investors.

custodian

  • A financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost.

digital asset

  • See asset.

dispose

  • To move an asset on the blockchain to its final state.

distribution

  • A payout (typically cash) from an investment vehicle.

distribution partner

  • An organization that acts as a selling firm for securities on the Corastone platform.

drawdown fund

  • A fund that uses capital calls.

exclusive offering

  • An offering that is visible to a select set of organizations and/or investors. For the Corastone platform, all offerings are currently exclusive in that a wealth manager organization must receive and accept the exclusivity assignment in order to subscribe.

fail

  • When an investor does not meet their obligations in response to a capital call.

fund administrator

  • A third party whose services may include fund accounting, financial reporting, NAV calculation, and offering administration.

hurdle rate

  • The lowest rate of return that the project must earn before the investment manager earns a performance fee.

individual investor

  • A person who buys and sells REITS, PE funds, VC investments, etc., on their own, through a brokerage firm. This person could be advised by a financial professional (advisor).

internal team

  • Individuals associated with a Corastone business account or other organization, such as an Asset Manager.

investing organization

  • An entity, usually a wealth manager, that buys securities on behalf of clients. Also referred to as an investor org.

iownit

  • Former name for Corastone.

issuance

  • The act of making an asset available to investors - e.g. issuing securities or limited partnership interests to investors.

issuer

  • A business entity that creates and sells a digital security. These organizations are typically companies who issue ownership interests in their own company.

legal entity

  • The corporation formed for the purpose of launching a fund.

ledger

  • The distributed ledger technology (DLT) that Corastone uses to support a marketplace for digital securities.

lot

  • Multiple shares of a security.

model portfolio

  • A model portfolio is a collection of funds that can be attributed to an investor's portfolio. Model portfolios use a diversified investment approach to target a particular portfolio objective. Given a cash amount available for investment, a model portfolio facilitates distributing that amount across the funds in the model. For example, a GP might create a model portfolio defined for investors interested in income over growth.

NAV (Net Asset Value)

  • Per-share market value for a fund.

network

  • On the Corastone platform, usually refers to the organizations that are members. Each member has a separate space called a node.

node

  • One the Corastone platform, refers to the space defined for each member organization on the platform.

offering

  • The issue or sale of a security to raise capital for a fund or single corporate issuer.

offline transaction

  • Corastone process that enables allocation of assets for an investor that is not yet a member of the Corastone platform.

orchestration

  • Automated workflow supporting blockchain activities.

organization

  • Any entity having a node on the Corastone platform.

portal

  • An application that enables Corastone organizations to visualize, drive, and manage securities workflows on the Corastone platform. These is a different portal for each type of organization: AM for Asset Managers, FA for Fund Administrators, and WM for Wealth Managers.

redemption

  • The repayment of all or part of an investment to an investor. This is typically driven by an investor’s requests to withdraw all or part of their account balance in an instrument.

registered fund

  • A fund registered under the Investment Company Act of 1940 and generally available to a larger number of investors.

remediation

  • The process of ammending issues with a subscription.

security

  • A tradable financial instrument used to raise capital in public and private markets.

selling firm

  • See distribution partner.

service provider

  • A category of roles that covers lawyers, investment bankers, and fund administrators who help issuers and asset managers set up and run their offerings.

  • A fund admin, banker, or lawyer for funds; transfer agent for corporations or some kinds of funds

settle

  • To move a transaction to a state of being cleared and closed, with money exchanged. The confirmation of receipt of funds.

share class

  • A designation applied to a specific type of security for a fund. Share classes are usually identified as A, B, etc.

smart contract

  • Program stored on a blockchain that runs when predetermined conditions are met.

subscription

  • An investment request to participate in a private offering.

team member

  • An individual associated with an organization and authorized to interact with the Corastone platform.

tender offer

  • A bid to purchase some or all of shareholders' stock in a corporation. On the Corastone platform, a tender is a process through which redemptions are managed for 40Act funds

transaction

  • A contract, agreement, transfer, or exchange of assets between two or more parties.

transfer

  • Movement of a security to a different account, usually due to a life event or an advisor’s transition to a different firm.

transfer agent

  • An entity that clears trades (i.e., matches up trade orders and transfers share ownership).

user

  • An individual with access to the Corastone platform.