Deal Disclosure template & process

Updated 6 months ago by Sanjay Vora

One of the key advantages with Avestor's customizable funds is that investors only need to sign a single set of fund legal documents but can then participate in a broad range of deals.

When fund managers are getting compensated at the deal level beyond traditional fund management fees (which are disclosed in the PPM), additional disclosure is critical. It ensures that your investors never get surprised or later feel that the fund manager was not clear on the terms of a deal or how they are getting compensated, either directly or indirectly.

Avestor has created a Deal Disclosure Template that fund managers can utilize to ensure that investors are fully aware and disclosed on the deal terms and how the fund manager is compensated on a given deal.

The process for fund managers is as follows:

  1. Log into Avestor's sponsor group on Yammer to download the latest version of the template. It will be in the Legal & Regulatory group files.
  2. Create your deal disclosure for a deal outlining deal specific compensation and any deal specific risks.
  3. Email the deal disclosure to Avestor team. We will load it on the platform & set it up for e-sign.
  4. Investors will provide soft commits on a deal or request an allocation into a specific investment.
  5. Using Avestor's e-sign on demand feature (in the Investments menu), send each investor an electronic version of the deal disclosure for signature.
  6. After the investor reviews & signs the deal disclosure document, a copy is automatically uploaded into their account.
  7. Fund managers can check the status of the deal disclosure document at the e-sign on demand menu. Once signed, the fund manager can accept funds from the investor.
  8. After capital is received and the deal is converted into an investment, the fund manager can allocate the investor into the investment.

This process protects both the investor and the fund manager and ensures clarity and transparency on deal terms, risks and fund manager compensation.


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