Flow of Capital in & out a Fund
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
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Investor capital
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Manager capital
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Operating income from investments
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Principal returned from investments
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Interest, dividends or capital gains from investments
Outgoing money flows
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Investments made by the fund
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Loans originated by the fund
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Investor distributions out from the fund
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Loans originated by the fund
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Fund expenses
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Fund manager income (also a fund expense)
Management Entity Bank Account
Incoming money flows
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Equity capital from partners / co-managers
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Manager income from the Fund
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Expense reimbursements to Manager for fund expenses paid by management entity
Outgoing money flows
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Manager investments into Fund
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Management entity expenses
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Distributions back to partners / co-managers
ADDING/MANAGING FUND MANAGER / GP CAPITAL
