Deals vs Investments? Don't be confused....

Updated 6 months ago by Sanjay Vora

If you confused, read this article to help get things clarified. First, lets define both.

  1. Deal - an opportunity that you are looking to raise capital.
  2. Investment - a deal that the fund has already invested its capital in.

Avestor provides fund managers with significant flexibility so depending on your situation so lets go through the options.

  • Option 1 - Raising investor capital before investing in an opportunity
  • Option 2 - Using Manager capital to pre-invest in an opportunity
  • Option 3 - Using a combination of investor capital and manager capital to invest in an opportunity

Option 1 - Raising investor capital before investing in an opportunity

If your plan is to raise capital from investors first, the steps are as follows:

  1. Create a Deal
  2. Upload deal documents
  3. Gather soft commits
  4. Invest as a fund
  5. Convert Deal to Investment
  6. Allocate slices to investors

Option 2 - Using Manager capital to pre-invest in an opportunity

If your plan is to plan to pre-invest in the deal and then allocate investors into the deal, the steps are as follows:

  1. Invest in the deal using fund capital
  2. Create an Investment
  3. Upload deal documents
  4. Gather investment requests
  5. Allocate slices to investors as their capital comes into the fund

Option 3 - Using a combination of investor capital and manager capital to invest in an opportunity

If your plan is to invest with a combination of Manager capital and investor capital, the steps are as follows:

  1. Follow Steps 1 to 3 of Option 1
  2. After gathering soft commits, decide how much additional Manager capital will be invested
  3. Invest as a fund using both the investor capital and Manager Capital
  4. Convert Deal to Investment
  5. Allocate slices to investors that provided the capital. The remaining slices will be in the Manager account.
  6. The Manager slices can then be allocated at a later date as additional capital comes in


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