Flow of Capital in & out a Fund

Updated by Sanjay Vora

This article should help clarify which funds flow into and out of the fund bank account and the management entity bank account.

Fund Bank Account

Incoming money flows

  • Investor capital
  • Manager capital
  • Operating income from investments
  • Principal returned from investments
  • Interest, dividends or capital gains from investments

Outgoing money flows

  • Investments made by the fund
  • Loans originated by the fund
  • Investor distributions out from the fund
  • Loans originated by the fund
  • Fund expenses
  • Fund manager income (also a fund expense)

Management Entity Bank Account

Incoming money flows

  • Equity capital from partners / co-managers
  • Manager income from the Fund
  • Expense reimbursements to Manager for fund expenses paid by management entity

Outgoing money flows

  • Manager investments into Fund
  • Management entity expenses
  • Distributions back to partners / co-managers


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