Investran Conceptual Design Document

Deerpath Capital
INVESTRAN
CONCEPTUAL
DESIGN
Tuesday, December 11, 2018
Version 1.0
)
Conceptual Design Document
Contents
1. Overview ....................................................................................................................................... 7
1.1 Conceptual Design Workshop .................................................................................................... 7
1.2 Conceptual Design Document Objectives .................................................................................. 7
1.3 Roles and Responsibilities .......................................................................................................... 7
2. Investran Structure Overview ..................................................................................................... 9
2.1 Contacts ................................................................................................................................... 9
2.1.1 Individual Contacts ............................................................................................................... 9
2.1.2 Organisational Contacts ..................................................................................................... 10
2.1.3 Contact Association ............................................................................................................ 10
2.1.4 Contacts Roles & Correspondence Types ......................................................................... 11
2.1.5 Correspondence Types and Deliveries .............................................................................. 11
2.2 Investor Structure...................................................................................................................... 12
2.2.1 Legal Entity ......................................................................................................................... 12
2.2.2 Vehicle ................................................................................................................................ 12
2.2.3 Specific Vehicle .................................................................................................................. 12
2.2.4 Investor ............................................................................................................................... 13
2.2.5 Specific Investor ................................................................................................................. 13
2.2.6 Investor Account ................................................................................................................. 13
2.3 Investment Structure ................................................................................................................. 14
2.3.1 Deal..................................................................................................................................... 14
2.3.2 Specific Deal ....................................................................................................................... 14
2.3.3 Position ............................................................................................................................... 14
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2.3.4 Specific Position ................................................................................................................. 14
2.3.5 Lots ..................................................................................................................................... 15
2.4 Security Master ......................................................................................................................... 15
2.4.1 Issuer .................................................................................................................................. 16
2.4.2 Security ............................................................................................................................... 16
2.4.3 Income Security .................................................................................................................. 16
3. General Ledger Solution ........................................................................................................... 17
3.1 Chart of Accounts .................................................................................................................. 17
3.2 Transaction Types ................................................................................................................. 18
3.2.1 Default GL Accounts ........................................................................................................... 18
3.2.2 Default Debit / Credit Treatment ......................................................................................... 18
3.2.3 Quantity .............................................................................................................................. 19
3.2.4 Deal Information ................................................................................................................. 19
3.2.5 Transaction Type Attachments ........................................................................................... 19
3.2.6 Transaction Type User Defined Fields ............................................................................... 19
3.3 Custom Accounting Configuration ............................................................................................ 20
3.4 Legal Entity Mapping ................................................................................................................ 20
3.5 Accounting Transactions .......................................................................................................... 20
3.5.1 Batch ................................................................................................................................... 20
3.5.2 Transactions ....................................................................................................................... 21
3.5.3 Deal Information ................................................................................................................. 21
3.5.4 Investor Allocations............................................................................................................. 22
3.5.5 Saving Batches ................................................................................................................... 22
3.5.6 Posting Batches .................................................................................................................. 23
3.5.7 Reversing Batches.............................................................................................................. 23
3.5.8 Deleting Batches ................................................................................................................. 23
3.6 Investor Allocation Rules .......................................................................................................... 24
3.6.1 Static vs. Dynamic Allocation ............................................................................................. 24
3.6.2 Top Down vs Bottom Up Allocation .................................................................................... 24
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4. Solution Automations................................................................................................................ 26
4.1 Active Templates (ATs) ............................................................................................................ 26
4.2 Business Events (BEs) ............................................................................................................. 26
5. Document Management ............................................................................................................ 27
5.1 Storing Documents ................................................................................................................... 27
5.1.1 Upload as Attachment ........................................................................................................ 27
5.2 Legal Entity Consolidation ........................................................................................................ 27
5.2.1 Grouping Legal Entities ...................................................................................................... 27
5.2.2 Eliminating Entries .............................................................................................................. 28
6. Accounting Business Process ................................................................................................. 29
6.1 Fund Setup Process ................................................................................................................. 29
6.1.1 Legal Entity Setup ............................................................................................................... 29
6.1.2 Vehicle Setup ...................................................................................................................... 29
6.2 Investor Setup Process ............................................................................................................. 30
7. Investor Transactions Processes ............................................................................................ 31
7.1 Investor Capital Call & Distribution Notice ................................................................................ 31
7.1.1 Capital Call & Distribution Notice Generation ..................................................................... 31
7.1.2 Capital Call Notice Delivery ................................................................................................ 31
7.2 Fund Equalization Process: Subsequent Close AT .................................................................. 32
7.3 Investor Split & Mergers Process ............................................................................................. 32
8. Investment Setup Process ........................................................................................................ 34
8.1 Deal Setup Process .................................................................................................................. 34
8.1.1 Fund Investments ............................................................................................................... 34
8.1.2 Holding Company Investments ........................................................................................... 35
8.2 Position Setup Process ............................................................................................................. 35
8.2.1 Position Setup Process ...................................................................................................... 35
8.2.2 Issuer Setup Process.......................................................................................................... 36
8.2.3 Security Data Points ........................................................................................................... 36
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9. Investments Transaction Processes ....................................................................................... 37
9.1.1 Sales Active Template ........................................................................................................ 37
9.2 Investment Revaluation Process .............................................................................................. 37
9.2.1 Unrealized Market Gain/(Loss) AT ..................................................................................... 37
10. BackOffice/Accounting Automation ........................................................................................ 39
10.1 Equity Pickup BE ................................................................................................................... 39
10.2 Year-End Close Process ....................................................................................................... 40
10.2.1 Locking a Period .............................................................................................................. 41
10.2.2 Generating a Fiscal Period Closing Journal Entry........................................................... 41
10.2.3 Opening Locked Periods ................................................................................................. 42
11. Legal Entity Structure................................................................................................................ 43
11.1 Overview ................................................................................................................................ 43
11.1.1 Legal Entities to be created ............................................................................................. 43
11.2 Fund Structure ....................................................................................................................... 44
11.2.1 Fund Structure ................................................................................................................. 44
12. Reporting Solution ..................................................................................................................... 46
12.1 Standard Reporting Solution.................................................................................................. 46
12.2 Report Wizard ........................................................................................................................ 46
12.3 Report Wizard with Third Party Reporting Tools ................................................................... 47
12.3.1 SQL Reporting Services .................................................................................................. 47
12.3.2 Report Wizard Data Provider Tool................................................................................... 47
12.4 Report Wizard with Microsoft Excel ....................................................................................... 47
12.4.1 Push Data Approach ....................................................................................................... 47
12.4.2 Pull Data Approach .......................................................................................................... 47
12.5 Reporting Services ................................................................................................................ 47
12.6 Report Wizard Data Sources ................................................................................................. 48
12.6.1 Reporting Data Points ..................................................................................................... 48
12.6.2 Reporting Aggregation with Hierarchies .......................................................................... 48
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12.6.3 Performance Calculations ............................................................................................... 52
12.6.4 Performance Measures ................................................................................................... 52
13. Security Manager ....................................................................................................................... 53
13.1 Investran User ....................................................................................................................... 53
13.2 Team ...................................................................................................................................... 54
13.3 Entitlements ........................................................................................................................... 55
13.4 Entitlements ........................................................................................................................... 55
13.4.1 Domain Entitlements ....................................................................................................... 55
13.4.2 Utilities and Management: ............................................................................................... 57
13.4.3 Lookups and Module ....................................................................................................... 60
14. Data Migration ............................................................................................................................ 61
14.1 Overview ................................................................................................................................ 61
14.2 Data Migration Process ......................................................................................................... 61
14.3 Data Migration Activities ........................................................................................................ 61
14.3.1 Data Migration Strategy ................................................................................................... 61
14.3.2 Data Preparation ............................................................................................................. 61
14.3.3 Data Loading ................................................................................................................... 62
14.3.4 Reconciliation .................................................................................................................. 62
14.4 Static / Referential Data ......................................................................................................... 63
14.5 Transactional Data ................................................................................................................. 63
14.5.1 Migration Approach ......................................................................................................... 63
14.5.2 Transactions: Investor Cash flows................................................................................... 64
14.5.3 Transactions: Investment Cash flows .............................................................................. 64
14.5.4 Transactions: Other ......................................................................................................... 64
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1. Overview
The implementation of Investran at Deerpath Capital commenced with a two-day Conceptual Design
session which was conducted at Deerpath Capital’s Ft. Lauderdale office.
1.1 Conceptual Design Workshop

The key objectives of the workshops were to:
• Provide overview of Investran structure and functionality to end-users

• Discuss fund family requirements including the entity structures and their related dependencies
• Discuss automation and integration requirements
• Analyse and gather a list of data items that will be captured to address Deerpath Capital’ s reporting
requirements
• Review Reporting Requirements; sample of reports required to be generated in Investran at the Go Live
date
• Discuss initial approach for migration of historical data for all Fund Structures
Participants
The following participants attended the design sessions:
• David Wimer FIS Investran – Consultant

• Boris Komarovskiy FIS Investran – Consultant
• Ryan Schindele Deerpath Capital
• Michael Davis Deerpath Capital
• Stephen Johns Deerpath Capital
1.2 Conceptual Design Document Objectives

The objective of the Conceptual Design is to provide the logical framework of how Investran
configuration will be carried out. FIS responsibilities are to set up the initial configuration in terms of
Entity Structures, User Defined Fields (UDFs), Lookup Values, Accounting Configuration and
Transactions Types.
1.3 Roles and Responsibilities

FIS will use this document as a basis to configure Deerpath Capital’s Investran Database. The
configuration will not include creation of any Legal Entity (LE) structures as part of initial setup. The
Entity structures will be set up as part of the data conversion exercise as per the Legal Entity structure
diagrams.
Deerpath Capital’s responsibilities are to confirm that the Conceptual Design captures all their
requirements given their knowledge of Investran at that time, to familiarise themselves with Investran
and to allocate enough resources to complete each task by the corresponding deadline. It will be the
responsibility of FIS to immediately identify Client knowledge gaps of how Investran functions and
provide the necessary details for finding a solution. Deerpath Capital and FIS have a joint
responsibility for creating LE structures as laid out in the Conceptual Design document. This task is to
be completed as part of the data conversion process.
Once the Conceptual Design document is signed off, Deerpath Capital will be responsible for
maintaining this document and system configuration. FIS will provide training / guidance on how to
update system configuration going forward.
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2. Investran Structure Overview

The following definition of terms used within Investran has been used throughout the Conceptual
Design process as a “base” language between the system’s architecture, functionality and the user
requirements.
2.1 Contacts
The solution provides centralized management of relationships for efficient and effective investor
relations, fundraising, investment pipeline management, and portfolio monitoring.
The building blocks of these relationships are Contacts, both individuals and organizations, with whom
you communicate and share information. While Individual contacts are similar to Organization
contacts, the type of information recorded about them differs.
2.1.1 Individual Contacts

The solution will allow the user capture following information:
• Title
• First Name
• Middle Name
• Last Name
• Organisation
• Job Title
• Department
• Profession
• Birthday
• Address (Street, City, Post Code, Country)
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o Business
o Home
• Phone Numbers (Multiple Types defined in Error! Reference source not found. Data Dictionary)
• Email Addresses
2.1.2 Organisational Contacts

The solution will allow the user capture following information:
• Organisation Name
• AUM
• In Business Since
• Web Page
• Firm Type
• Address (Street, City, Post Code, Country)
o Registered/Business
o Correspondence
• Phone Numbers (Multiple Types defined in Error! Reference source not found. Data Dictionary)
• Email Addresses
2.1.3 Contact Association

The solution allows the user to link Investran Entities to individual or organization contacts:
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2.1.4 Contacts Roles & Correspondence Types

The Contacts tab on an entity provides a centralized place for management of contacts, roles,
relationships, and correspondence deliveries. The Contacts associated to the entity are displayed
as vCards, which display relevant information about the contact
This acts as an “address book” for the entity, and users have the option of attaching existing Investran
contacts to the entity, or creating new contacts.
The solution allows the user to define one or more ‘contact role(s)’ for each association.
2.1.4.1 Legal Entity – Linked Contact:

The solution allows the user to manage contact details of the Legal Entity’s Managers, Directors,
Auditors, or Lawyer.
2.1.4.2 Investors – Linked Contacts:

The solution allows the user to manage contact details for any contact that has a relation to the
Investor, such as the Investor’s Accountant or Administrator.
2.1.4.3 Deal – Linked Contacts

The solution allows the user to manage contact details of the Deal’s Investment Manager or Board
Member.
2.1.5 Correspondence Types and Deliveries

The solution will allow the user to specify the default delivery method (such as email or fax) and
recipient type (such as primary or Cc) for each Contact and its correspondence types.
The Solution determines if only one or multiple primary contacts can be assigned to a correspondence
type for a given relationship.
The solution will allow the user to manage Correspondence and Delivery Types, for each linked
contact:
• Ability to define delivery types (Email, Fax, Save, and/or Print) by clicking the check boxes.
• Ability to define the recipient type -- Primary, CC, or Bcc.
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2.2 Investor Structure

2.2.1 Legal Entity
Legal Entities are the central point of investor and portfolio management within Investran. Accounting
data and transactions related to both Investors and portfolio investments are recorded at the Legal
Entity level.
In the Investor context, the Legal Entity represents the fund that receives money from outside
investors with the purpose of centralizing management of the investment portfolio.
In the context of portfolio investments, the Legal Entity is the organization that acquires and owns
the portfolio investments.
In Investran, the role of the Legal Entity is based upon widespread industry practices. Most
investment firms and fund managers in the private equity industry aggregate their portfolios into one
or more legal entities for purposes of diversifying and/or differentiating varying portfolio strategies.
2.2.1.1 Limited Partnership Setup
Typically, the legal entity takes the form of a limited partnership, which affords several advantages to
the fund's investors over other legal forms, including transparency for tax purposes, limitation of
liability from claims against personal assets, and the ability to allocate earnings and losses. By
definition, a limited partnership must have a general partner (GP) who is responsible for the liabilities
of the partnership. Fund managers typically set up a corporation to designate as the general partner.
As the general partner, this corporation must invest a certain amount in the partnership. The outside
investors are usually the limited partners (LPs) of the limited partnership.
2.2.1.2 Special Purpose Vehicle (SPV) Setup

In the case of Deerpath Capital, the legal entities would represent funds entities and Special Purpose
Vehicle (SPV) entities in different currencies.
2.2.2 Vehicle
At the most basic level Vehicles can be used as a grouping of similar investors that share common
characteristics that will remain static throughout the life of the fund.
They can also be used to group classes of Investors that require different legal and/or tax treatment.
The Legal Entity/Vehicle/Investor structure in Investran represents a hierarchical relationship where
Investors roll-up to Vehicles and Vehicles roll-up to Legal entities. This is a common/general record
and has no link to any Legal Entity; however, it can be linked to multiple Legal Entities.
2.2.3 Specific Vehicle

A Specific Vehicle is created when a common/general vehicle is linked to a Legal Entity. The Specific
Vehicle would capture information which is specific to the linked Legal Entity.
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2.2.4 Investor
Investors are the original source of capital for the ultimate portfolio investments made by a fund, as
well as the final recipients of investment gains and proceeds.
These important roles played by Investors typically require that investment portfolio information be
maintained and reported to Investors and their contacts at regular intervals. The Investor workspace is
the source for capturing the investor related data, such as commitment levels and correspondence
recipients, which will be necessary to provide such services to Investors.
Investors may be either individuals or organizations representing General Partners, Limited Partners,
Shareholders or Carry Partners. This is a common/general record and has no link to any Legal Entity;
however, it can be linked to multiple Legal Entities.
2.2.5 Specific Investor

A Specific Investor is created when a common/general Investor is linked to a Legal Entity via a
Specific Vehicle. The key information maintained by the Specific Investor usually includes the
Investor’s commitment to the fund and the bank details.
2.2.6 Investor Account

The Investor Account entity provides a holistic view of a manager’s relationship with a client by
grouping together related Investors. From the Account workspace, fund managers can track
Opportunities that are marketed to a client in addition to viewing the client’s existing investments.
Contacts, Activities, and resources are also available in the workspace.
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Refer to Section Error! Reference source not found. Data Dictionary for all data points captured in
Investor Account
2.3 Investment Structure

The Legal Entity is the organization that acquires and owns the portfolio investments. Whether in
terms of a fund administrator or the portfolio manager for an organization, the fund that holds and
performs the investments is set up as a Legal Entity in Investran. The portfolio may consist of
company securities that are owned directly, funds that invest directly in company securities, or funds
that invest in other funds, but the Legal Entity remains the starting point of all investment activities
in Investran. To affect these investments, various combinations of Deals and Positions can be added
to the Legal Entity's portfolio. Typically, as Deals are created, they are assigned to a Legal Entity and
Positions are then assigned to the Deals, which also creates a relationship to the Legal Entity. Over
time, a Legal Entity may have many Deals and many Positions under each Deal. Deals and Positions
may have been acquired, liquidated, reinvested, and so on, but the Legal Entity as the investing fund,
remains constant
2.3.1 Deal
The Deal represents the portfolio of direct and fund investments. Deals are generally made up of one
or more positions. Therefore, a hierarchical relationship exists between deals and positions. This is a
common/general record and has no link to any Legal Entity; however, it can be linked to multiple
Legal Entities.
2.3.2 Specific Deal

A Specific Deal is created when a common/general deal is linked to Legal Entity. Within an alternative
investment structure, multiple Legal Entities may invest in the same deal. This enables a deal to be
linked to multiple Legal Entities.
2.3.3 Position
Position is a combination of Issuer and Security defined in the Security Master Module. This is a
common/general record and has no link to any Legal Entity.
2.3.4 Specific Position

A common/general position can be linked to a Legal Entity’s Deal and it’s referred as a Specific
Position.
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2.3.5 Lots
Lots can be defined as purchase tranches, and provide greater functionality and integrate with other
areas of Investran seamlessly.
Multiple Lots can be assigned to one Position. Each Lot refers to a purchase of a group of securities
that represent the specific Position or Security. Lots assigned to a specific Position may then be
selected in the Accounting module when entering a transaction for that Specific Position.
The effect of these steps is to track the cost basis for securities in terms of individual Lots. This is an
important feature because each Lot may have been purchased at different dates and at a different
share price, resulting in a different purchase cost for each Lot. Additionally, over time, a Security may
be converted, split, reverse split, redeemed, exchanged as part of a merger, and/or finally sold. In
each of these scenarios, it is necessary to retain the cost basis of shares owned for accurate
accounting. Therefore, even though 100 shares of preferred have been converted to 500 shares of
common, then exchanged 2-for-1 for 250 shares of another company because of a merger, it is vital
to track the initial cost basis amount of the purchase. Creating Lots Underneath Positions and
assigning Lots to transactions, accomplishes this requirement.
In addition, lots can simplify the processing of the sale of Securities. When a sale of securities is
processed, the Lots can be sold either by specific identification, first-in first-out (FIFO), or last-in first-
out (LIFO), or multiple Lots can be chosen, in which case the cost will be computed as a weighted
average of the total shares comprising those Lots. The result is an efficient manner of generating a
capital gain or loss journal entry. Moreover, the remaining share quantities and cost basis for any Lots
that are partially sold will be maintained accordingly.
Once a Lot is assigned to a Specific Position, it becomes available for assignment to transactions that
are entered for the Position. In the Accounting module, the Lot column will allow the selection of
the Lots assigned to the indicated Position. Select the appropriate Lot from the list in order to assign it
to the transaction and track the Lot’s cost basis going forward.
2.3.5.1 Auto Generated Lots

Another method of assigning a purchase Lot is to Auto-generate the Lot. Lot auto-generation is
available based on the setting for the selected Transaction Type. If auto-generation is available,
the Lot selection list will contain the option to “<Auto-generate>”.
An auto-generated Lot creates a Lot name by using the Security ticker from the Security panel. Then,
it appends the year, month, and date of the Effective date for the journal entry line item. If there are
multiple Lots for the same Effective Date, a “<>” encloses the order of the Lot purchases.
2.4 Security Master
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2.4.1 Issuer
The Security Master module maintains information about Issuers, whether they become part of the
portfolio. This data is specific and unrelated to any Legal Entity’s investment in that Issuer. A sampling
of Information tracked by the issuer panel includes the business description, its Board of Directors and
key officers, its industry, and its financial performance.
2.4.2 Security
The Security webpage is where information about issuers’ securities are maintained. For example,
information such as security type (equity vs. debt), voting privileges, tickers, conversion features, etc.
are all maintained on the security record.
2.4.3 Income Security

The Income Security record is only used by securities that accrue income, i.e., debt or coupon paying
preferred shares. In many cases, the Income Security record is merely an extension of the Security
record where data elements such as coupon rate, day basis, payment dates, etc. are captured. For
example, a $5,000,000 note that has 14% coupon rate (12% Cash and 2% PIK) and interest is
payable quarterly on 31/03, 30/06, 09/30, 31/12 could generate four new $25,000 notes per year.
When received, each of these notes, including the original $5,000,000 note, is established as an
Income Security of the 14% Sub Note Security.
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3. General Ledger Solution

3.1 Chart of Accounts
Investran has a “Global Chart of Accounts” comprised of GL Accounts. There are four components of
an Investran GL Account. These are:
Account Code The G/L account number.
Description The account name which will be displayed on Trial Balance Reports
Account Type The financial statement class into which this account fits (such as Assets,
Liabilities, Capital, Revenues and Expenses).
Close to Account Indicates the Capital Account to which Revenues and Expenses Accounts should
be closed during the Fiscal Period Close process.
Refer to 10.2 Year End Process section for details
Active Indicates if this account is active and available for use when booking
transactions.
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3.2 Transaction Types

Investran has a concept of Transaction Types. These are the basic unit for recording transactions
in Investran’s Accounting module. They allow users to define input rules for a granular breakdown of
transactional and accounting data for easier reporting.
A Transaction Type is made up of several components. The key components are:
3.2.1 Default GL Accounts

The solution will allow the user to define default account for this transaction type. There is a one-to-
many relationship between G/L accounts and transaction types, that is, several transaction types can
be mapped to a single G/L account, whether they are credits or debits.
Note: Each GL Account must have at least one or more transaction types.
3.2.2 Default Debit / Credit Treatment

The solution will allow the user to define whether the transaction type is typically a debit entry or a
credit entry. When the transaction type is used in a transaction, it will default to the option selected
here but it can be changed.
Note: Each debit value is stored as negative and positive value is stored as positive.
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3.2.3 Quantity
This allows the user to capture number of units for special transaction type e.g. equity investment and
unit of shareholder issues / redemption
The solution has ability to customise quantity scale i.e. number of decimals for the quantity field.
Investran can accommodate 7 as the maximum number of decimals, however default number of
decimals to be 2.
3.2.4 Deal Information

The solution will allow the user to capture deal information at following level:
• Deal Name (should be mandatory for all transaction types)

• Position Name (should be mandatory for all investment-related transaction types)
• Income Security (should be mandatory for all debt-related transaction types)
• Lot (Allows the user to tag each transaction to a specific lot in a deal and position)
3.2.5 Transaction Type Attachments

The solution also allows you to attach a file to a transaction to provide document substantiation for
journal entries in an accounting batch. File can be attached as a "link" or as "content". Linking a file
creates a reference to the location where the file is stored. If the file location changes, you must
update the link or you won't be able to open the file from the transaction. Inserting the file as content
will add a copy of the actual file to the transaction. Once the batch has been posted, you cannot
update the file attachment.
3.2.6 Transaction Type User Defined Fields

Transaction type user defined fields can be configured for certain transaction types to require
additional information when inputting a journal entry using that transaction type.
3.2.6.1 User Lookup 1: Bank Account Lookup

Deerpath Capital intends to capture the details for Bank Accounts for all related transactions as
specified in the COA Model. To achieve this User Lookup 1 will be populated with a list of the Bank
Accounts used by Deerpath Capital.
The lookup values can be updated in the Accounting module in the future by an end-user.
3.2.6.2 User Lookup 2: Supplier Lookup

Deerpath Capital intends to capture the details for Suppliers for all related transactions as specified in
the COA Model. To achieve this User Lookup 2 will be populated with a list of the Suppliers used by
Deerpath Capital.
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3.3 Custom Accounting Configuration

The solution will be customised with the chart of accounts and transaction types during conceptual
design workshop. Refer to section Error! Reference source not found. of this document for detailed
list:
• Chart of Accounts
• Transactions
Training will be provided to Deerpath Capital’s power users, to ensure that any necessary updates
post database delivery can be promptly actioned by Deerpath Capital.
It is advised that any such updates are first discussed with FIS so that any negative impacts can be
mitigated.
The lookup values can be updated in the Accounting module in the future by an end-user.
3.4 Legal Entity Mapping
The Legal Entity Mapping tool allows you to restrict the transaction types, allocation rules,
and Accounting UDFs available for a Legal Entity.
This reduces the burden on users of remembering which items apply to which Legal Entities. It also
saves users the time of searching through a long list for the appropriate transaction type, allocation
rule, or UDF value to use for a Legal Entity.
3.5 Accounting Transactions

Recording and maintaining data on transactions are fundamental parts of the accounting and
information needs of an organization.
However, Investran goes beyond this basic functionality by providing an intuitive yet
powerful Accounting module that not only records and stores transactional data, but also works
seamlessly with Investran modules to offer extensive reporting and analytical capabilities.
The Accounting module is a robust and powerful solution for all phases of the accounting
process. From fundamental accounting entry to customized reporting options to year-end closing of
the books, the Accounting module is a comprehensive solution that can be customized to match an
organization’s accounting and reporting needs.
3.5.1 Batch
Each batch is comprised of one or more journals which can be grouped together on same Legal
Entity, GL Date. Each batch is uniquely identified by Batch ID across all Legal Entities.
Following is the structure of the batch:
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3.5.2 Transactions
Each transaction in a batch represents a debit / credit for transaction type & GL Account, which
inherits Legal Entity and GL Date from the Batch. Following is the structure of the transaction:
3.5.3 Deal Information

The solution will allow the user to capture deal information at following level:
• Deal Name (should be mandatory for all transaction types)
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• Position Name (should be mandatory for all investment-related transaction types)

• Income Security (should be mandatory for all debt-related transaction types)
• Lot (Allows the user to tag each transaction to a specific lot in a deal and position)
3.5.4 Investor Allocations

Each transaction is allocated to Investors in the legal entity using dynamic or user provided allocation
rules.
3.5.4.1 Opting Out an Investor

The solution allows "opt out" one or more investor(s), which will exclude the Investor from the
transaction. The amount originally allocated to the Investor is then allocated proportionately to the
remaining Investors according to their respective percentages. The Total Allocation row remains the
same.
3.5.4.2 Manual Reallocation

The solution allows user to manually reallocate an Investor amount, you simply select the amount or
quantity that you want to override and edit it as necessary. When doing a manual reallocation, the
Total Allocation row will automatically adjust to reflect the change, which changes the actual
debit/credit amount of the transaction.
3.5.5 Saving Batches

The solution allows the user to save the batches into two modes:
3.5.5.1 Draft
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The solution allows the user to save the batch as a “draft” and will update following audit trail for the
batch:
• Changed By
• Changed Date
Draft Batches has no impact for reporting purposes until saved as ‘Held’
3.5.5.2 Held
The solution allows the user to save the batch as Held and will update following audit trail for the
batch:
• Changed By
• Changed Date
The transaction amounts will be available for reporting purposes and financial statements. The batch
can still be modified or edited until its Posted.
3.5.6 Posting Batches

The solution will allow the user to post batch has been posted and will capture following audit trail:
• Posted By
• Posted Date
After the batch is posted, it will become read-only and will be available for reporting.
3.5.7 Reversing Batches

Reversing a batch is useful when you need to "back out" or reverse a group of transactions that
cannot be edited. There are two options for reversing batch:
1) Unpost Batches (for Posted Batches)

The solution will allow user with ‘specific access rights’ to unpost a batch that has been
posted to modify that batch or delete the batch.
2) Reverse Batches (for Posted & Unposted Batches)

When reversing a batch, the Apply Flow check box is changed to the opposite of its original
state for all the transactions, creating a batch that is the opposite of the original. If the Apply
Flow check box was selected in the original batch, it is cleared to create the reverse batch; if
the Apply Flow check box was clear in the original batch, it is selected to create the reverse
batch.
3.5.8 Deleting Batches

The solution allows the user to delete one or more batches. The selected batches are marked with the
"Deleted" status. Batches marked as deleted are removed permanently from the database.
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3.6 Investor Allocation Rules

Allocation rules are used to define how a profit item is allocated to each of the individual partners
and/or other investors in a specified Legal Entity. The profit item or allocation may be a percentage of
the total amount of a transaction or number of shares of a transaction.
3.6.1 Static vs. Dynamic Allocation

3.6.1.1 Static Allocation Rules
Static allocation rules consist of a table that defines the fixed percentages for each of the investors.
Static allocation rules are created using the Static Allocation Rules utility in the Portfolio & Investor
Manager.
3.6.1.2 Dynamic Allocation Rules

Dynamic allocation rules are used when the percentages are not fixed because the percentages may
change as the data changes. Investran comes with a set of standard dynamic allocation rules which
are as follows:
• By Average Cash Balance

• By Commitment & Closing Date
• By Commitment (No Date)
• By Specific Closing Date Commitment
• By Unfunded Commitment
• Investment Cost (As of GL Date)
• Management Fees (outside investment period): Calculates the 'Management Fees' for each investor
in a fund on basis of Invested Capital (i.e. Net Investor Contribution + Realised Gain/Loss) when outside
the Investment Period. The rule picks up management fee rate from fund or specific rates for investor(s)
(in case of overrides).
• Management Fees (inside investment period): Calculates the 'Management Fees' for each investor in
a fund on basis of Investor’s Commitment to the fund when inside the Investment Period. The rule picks
up management fee rate from fund or specific rates for investor(s) (in case of overrides).
• Custom Management Fee Allocation Rule will be created for Deerpath Capital if applicable.
3.6.2 Top Down vs Bottom Up Allocation

3.6.2.1 Top Down Allocation Rule
This allocation allows the user to input an amount at ‘Legal Entity’ level, which then them allocated to
each investor based on a dynamic or static percentage split.
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3.6.2.2 Bottom Up Allocation Rule

This allocation rule allows the user input Investor-level allocation is user defined or automated
calculation, which is then aggregated at vehicle and legal entity level.
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4. Solution Automations
Solution Automations allow creation of accounting batches in the Accounting module for complex
calculations. There are two types of automations available in Investran:
1. Active Templates (ATs)

2. Business Events (BEs)
4.1 Active Templates (ATs)

Active Templates (ATs) allow you to create transaction batches in the Accounting module for complex
yet common accounting tasks. This section will begin with an overview of the basic process for
generating batches with an AT from a general perspective.
4.2 Business Events (BEs)

The Business Events Framework is Investran’s new generation Active Template (AT). Like ATs,
business events are highly customizable from a calculation, book-keeping, and investor allocation
perspective. Business events, however, go beyond ATs, providing user interface customization and
native integration to Investran Web. Business events are easily packaged and deployed to client
production environments through a simple import.
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5. Document Management
The solution has comprehensive Every entity has a Resources tab where you can add supporting
information such as Excel models and LPA subscription documents. For entities associated with
specific entities (Investor, Vehicle, and Position) you can add resources to the general entity or
specific entity. For entities with specific relationships (Account and Deal) you can add the resource to
any of the related entities.
5.1 Storing Documents

5.1.1 Upload as Attachment
The solution has ability to store physical documents in the database when uploaded as an
attachment. If the resource is updated after the upload, you must upload the latest resource, so the
most recent information is available.
5.2 Legal Entity Consolidation

5.2.1 Grouping Legal Entities
The Solution allows the users to generate consolidated financial statements, which combines the
financial statements of multiple Legal Entities. Since the reporting for individual Legal Entities stand
alone in Investran, it is possible to create consolidated reports by creating a UDF which will be applied
to all Legal Entities, named “LE Group”. Please see the sample screenshot below.
When selected Legal Entities have been tagged with the UDF “LE Group”, users can create any
financial report in Report Wizard based on this grouping to generate consolidated reports.
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5.2.2 Eliminating Entries

There are three methods that users can adopt to perform accurate consolidated reporting:
5.2.2.1 Elimination Legal Entity

Linked to the fund structure, elimination entries are booked to this Legal Entity. For consolidation
reporting, the General Ledger balances of this Legal Entity are included to ensure intercompany
reconciliation is satisfied in reporting.
5.2.2.2 Elimination Journal Entries

Periodically, (monthly, quarterly, annually) users can run a report on the intercompany General
Ledger balances which can then be used to book elimination entries to ensure the intercompany
reconciliation is satisfied in reporting.
5.2.2.3 Elimination Reporting

Using the journal type to track and report elimination entries. As consolidation reports are executed,
Report Wizard will automatically exclude journals that are a specific journal type, for example
‘Intercompany Transactions’ and ‘Equity Pickup Transactions’.
The above methods ensure that intercompany reconciliation is complete so that consolidation reports
for financial statements are calculated correctly.
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6. Accounting Business Process

6.1 Fund Setup Process
The Solution will allow the user to capture following business process
Legal Entity Setup Vehicle Setup Investor Setup
6.1.1 Legal Entity Setup

The Solution will allow the users will create Legal Entity, capturing following information:
General Information Captures Name, Alias, Currency, Launch Date, Entity Type
Contact Information Captures Organisational Contact for the legal entity
Bank Account Information Captures bank account information for capital call notices
Contact Roles Allows the user to link specific individuals and organizations to
Accounting and Limits Capture Accounting Configuration for the Legal Entity
Almost every Legal Entity will have investors, with each investor having both generic information that
is independent of relationships with Legal Entities, but also information that is specific to the
investment in a Legal Entity.
The solution will allow the user to perform following for each legal entity:
Contacts Ability to link the entity to linked organisational and individual contacts
Reports Ability to execute reports related to the entity. Additional reports can be mapped
from ‘Report Wizard’ module.
Audit Trail Ability to track changes made to any entity record. The user will be able to view
changes for each field available for the entity, which includes timestamp,
changed by and previous values.
6.1.2 Vehicle Setup

The Solution will allow the user to add new or existing vehicle to the Legal Entity. The user will be able
to capture following vehicle information in following sections:
• General Vehicle Data Points

• Specific Vehicle Data Points
If a Legal Entity does not contain an underlying vehicle structure, then it may not require a Vehicle.
However, it is recommended that you create a single Vehicle with the same name as the main Legal
Entity.
Every Vehicle must also be associated with a Contact record in Investran Web. You can link a single
Contact to multiple Vehicles or other Investran entities, if the name of each entity is unique.
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The solution will allow the user to perform following for each vehicle:
Contacts Ability to link the entity to linked organisational and individual contacts
Reports Ability to execute reports related to the entity. Additional reports can be mapped
6.2 Investor Setup Process
The solution allows the user to create Investors which must be included in a Vehicle. The Investor
must also be associated with a Contact record in Investran Web.
If the Investor is not an existing Contact, you can create a new Contact record at the time you create
the Investor. You can link a single Contact to multiple Investors or other Investran entities, if the name
of each entity is unique.
The user will be able to capture following Investor information in following sections:
• General Investor Data Points

o Investor Name, Classification etc.
o AML / FATCA Data Points
o General Bank Account Information
• Specific Investor Data Points
o Investor Commitments, which can be used to report Unfunded Investor Commitment
o Specific Bank Account Information
The solution will allow the user to perform following for each investor:
Contacts Ability to link the investor to linked organisational and individual contacts
Reports Ability to execute reports related to the investor. Additional reports can be
mapped from ‘Report Wizard’ module.
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7. Investor Transactions Processes

7.1 Investor Capital Call & Distribution Notice
Following is the process for preparing, generating, and delivering capital call & distribution notice.
7.1.1 Capital Call & Distribution Notice Generation

Reporting Services will collate data from CRM (Investor’s Contacts & Delivery Preferences) and
Accounting to generate personalized capital call notice for each Investor, which will be generated from
customize word-based template. The solution will also create personalized email for each recipient
based on mail merge template defined in Reporting Services Package
7.1.2 Capital Call Notice Delivery

Reporting Services solution will allow the user to deliver generated documents via following methods:
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7.2 Fund Equalization Process: Subsequent Close AT

The Solution has a standard automation, Subsequent Close AT which recalculates investor
allocations for each transaction between "start date" and "end date" using “Rebook Allocation Rule”
defined in parameter.
The Subsequent Close AT generates a single batch with two journal entries.
• The first journal entry reverses the fund balances as of the beginning of the Subsequent Close Date.
• The second journal entry rebooks these balances using a specified allocation rule.
Usually, the “By Commitment & Closing Date” allocation rule is used; therefore, all Investors with
commitments as of the Subsequent Close Date will be included in the allocation of the balances. To
manage the number of transferred balances, the balances are derived by GL account, transaction
type, Deal, Position, Investor, and Effective Date. Other transaction attributes (such as Lot, Income
Security, and so on) are not included.
Deerpath Capital’s Requirements
Deerpath Capital is going to use this automation without any customization.
7.3 Investor Split & Mergers Process

The Partner Transfer Business Event helps you manage the administrative and accounting aspects
of a transfer of ownership interest (partial or full) within a fund (such as Investor to Investor).
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The Partner Transfer business event tracks the documents and activities associated with the transfer
as well as the back-end transfer of detailed investor balances in the accounting records. Balances
associated with capital (either directly or indirectly through profit and loss) are isolated and transferred
through a designated “partner transfer” account. You can make a transfer on an “effective date” or
“non-effective” date basis. The “effective date” method retains all historical transaction effective dates
so that IRRs may be calculated with the assumption that the transferee has “stepped into the shoes”
of the transferor. The effective date option, therefore, transfers much more detail than the non-
effective date option.
The Partner Transfer process also supports stub periods so that you can process partner transfers
after they occur. A stub period is defined as the period after the effective date of the transfer up
through the date that the transfer is processed. The stub period transfers any transaction allocations
from transferor to transferee that occurs after the transfer effective date. You can process multiple
stub periods in one pass of the Partner Transfer business event.
Deerpath Capital will use this automation in case of investor mergers and spilt.
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8. Investment Setup Process

The Solution will allow the user to capture following business process
Income
Position Issuer Security
Deal Setup Security
Setup Setup Setup
Setup
8.1 Deal Setup Process

The solution will allow the user to create new or link existing deal to the Legal Entity. The solution will
allow the user to perform following for each deal:
Contacts Ability to link the deal to linked organisational and individual contacts
Reports Ability to execute reports related to the deal. Additional reports can be mapped
8.1.1 Fund Investments

Each direct investment will be set up as a ‘Fund Deal’ in the solution, with a business rule that all
positions can be only linked to one or more issues Issuer. The solution will allow the user to capture
following data points:
• General Deal Information

o : Capture Deal Name, Deal Currency etc.
• Specific Deal Information
o Deal Commitments, which is used to calculate unfunded deal commitments
8.1.1.1 Fund Investment Positions

Each Fund which is being invested in will be setup as an Issuer and dummy security called “LP” the
underlying investments are not known. The user would be able to link Issuer (FoF_A) and Security
(LP) as a position in Deal A. For example:
Security Master Configuration Investments Configuration
Issuer Security Deal Type Position

FoF_A LP Deal A Fund FoF_A (LP)
FoF_B LP
Deal A Fund FoF_B (LP)
FoF_C LP
Deal B Fund FoF_C (LP)
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8.1.2 Holding Company Investments

If a Legal Entity invests via HoldCo or SPVs then each it should be created as a Fund Deal in the
Legal Entity with the ability to link them using ‘Fund Diagrams’
• The solution will allow the user to track underlying investments of the SPV.
• This Deal is also an SPV which will be created as a Legal Entity as well.
8.2 Position Setup Process

A Position is a combination of an Issuer and a Security. While there are separate data points available
for both Issuers and Securities, there are also separate data points available at the Position level.
Following is the process to setup a new position in a deal:
Income
Issuer Security
Position Setup Security
Setup Setup
Setup
8.2.1 Position Setup Process

The solution will allow the use to create a position in a Legal Entity and Deal, allowing the user to
inherit ‘deal currency’ as ‘position’s currency’. The user will be able to split a single deal into multiple
deals for specific currencies.
The solution will allow the user to capture following data points:
• General Positions Information

o Link to Issuer
o Link to Security
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• Specific Position Information: Liquidation Status etc
The solution will allow the user to perform following for each position:
Contacts Ability to link the position to linked organisational and individual contacts
Reports Ability to execute reports related to the position. Additional reports can be
mapped from ‘Report Wizard’ module.
Resources Ability to store physical or links to documents related to the position. Refer to
section 5 Document Management for details
8.2.2 Issuer Setup Process

An Issuer is linked to an organisational contact record by default. This contact is automatically
displayed when viewing the Issuer in CRM. Users can also view the connected Securities in the
Issuer.
8.2.3 Security Data Points

You can store general information for Securities in Investran, as well as full, in-depth Security Details
for items such as; Convertible Securities, Common Stock Equivalents, Puts and Calls.
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9. Investments Transaction Processes

9.1.1 Sales Active Template
The Sales AT can be used to generate accounting entries for the sale of private equity investments.
This AT calculates the gain (loss) from the sale based on the selected cost allocation method - the
accounting entries reflecting the return of capital and gain (loss) transactions are then generated (and
categorized as long-term or short-term, if desired.) In addition, you can reverse the proportionate
unrealized gain (loss) booked for existing Positions or Lots.
9.2 Investment Revaluation Process

The solution has two standard automations will allow the user to generate accounting entries for
unrealized gain/(loss) for each deal and position:
• Unrealized Market Gain/(Loss) AT
9.2.1 Unrealized Market Gain/(Loss) AT

The Unrealized Market Gain (Loss) AT is designed to generate journal entries recording the
unrealized market gain or loss of an investment, in other words, the amount by which an investment is
marked up or down to meet market prices.
The AT determines the fair market value of an investment at a given date based on three pricing
methods - price per unit, percent change, or absolute investment value. The unrealized gain (loss)
amount is then calculated for the valuation period by subtracting the book value as of the valuation
date from the derived fair market value.
9.2.1.1 Fair Value Pricing Method
The three pricing methods provide the flexibility to use this AT as a solution for most asset classes.
• Private equity investments can be priced using absolute investment value by users entering
Legal Entity-specific pricing transactions for Deals and Positions.
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• Public securities will most likely be priced using price per unit by entering share prices
through the Market Data utility.
• Hedge fund investments will most likely be priced using the price per unit or percent change
method by entering intra-period data in the Market Data utility.
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10. BackOffice/Accounting Automation

10.1 Equity Pickup BE
The Equity Pick-up business event automates the equity method of accounting for investments in other entities
by seamlessly rolling up the profit and loss activity of a fund's ownership structure in a single, uninterrupted
process. The process "picks up" the Investor's allocable share of profit and loss from the child entities to parent
entities for any fund structure defined in Investran, across all tiers in the fund structure.
The business event evaluates the relationships among entities in the fund and processes the entities in the fund
structure from top down or bottom up, based on the fund diagram that you select. Investran records an
"Unrealized Appreciation/(Depreciation)" journal entry in the Legal Entities' books, maintaining the character of
the profit and loss allocated in the source entity.
The Investor Legal Entity is also known as the target Legal Entity and the Legal Entity in which the target Legal
Entity invests is known as the source Legal Entity. Since the target Legal Entity has their own set of books and
records, their allocated share of the profit and loss needs to be recorded on their own books to produce full and
accurate financial statements.
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10.1.1.1 Pickup Strategy:

The Business Events can run using four pickup strategies, which define level information carried
forward to the journal entries created in the target Legal Entities. The following options are available:
• Full Look Through: The source Deal and Positions are preserved on the target Legal Entities.
• No Look Through: Transactions are recorded to a Deal that represents the source Legal Entity.
• Partial Look Through: Transactions are recorded to a Deal that represents the source Legal
entity and the source Position is preserved.
• Partial Look Through - Preserve CCY: Transactions are recorded to a Deal that represents the
source Legal entity, and the source Position is preserved. Also, the source Legal Entity and Deal
Currency are maintained in the Target Legal Entity and Deal.
Deerpath Capital will use full look thru option to display the underlying deal. Future discussions and
the final design document can detail the steps needed to move P&L from specific feeders to specific
master funds and if any customization would be needed for this process.
10.1.1.2 GL Account Aggregation:

The aggregation group allows user to aggregate the amounts into a single journal entry, and select
the transaction types you want to book the aggregated journal entry to
The purpose of the Equity Pickup BE is to retrieve the equity allocation for the target Legal Entity and
record an entry in the target Legal Entity's ledger for the allocated profit and loss amounts. The
resulting journal entry will be recorded to a Deal - Position pair representing the source Legal Entity.
Once this entry is recorded, it can be allocated and picked up by its own underlying Investors.
10.2 Year-End Close Process

The solution has a standard automation for year-end closing process called ‘Fiscal Period Manager’.
This allows the user to perform the following tasks for multiple Legal Entities:
• Lock a Period
• Generate a Fiscal Period Closing Journal Entry.
• Open Locked Periods
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10.2.1 Locking a Period

Locking a period will prevent users from entering new batches with GL dates that fall within the locked
period. If the selected Legal Entity is enabled for year-end processing, you may want to verify that the
revenue and expense accounts have zero balances by running an income statement for the fiscal
period that you intend to lock.
The solution will restrict the users to lock periods that contain Draft, Held, or Deleted Accounting
batches. Deleted batches must be purged before closing the period. In addition, you can only lock
consecutive periods - the Fiscal Period Manager will not allow you to select a period that would leave
a gap between closed periods for any Legal Entity.
10.2.2 Generating a Fiscal Period Closing Journal Entry

The Fiscal Year Process will all profit/loss accounts are closed, and their balances reassigned to the
designated capital/equity accounts. If the Legal Entity is configured to Use Year-End Close Process,
the Fiscal Period Manager will generate a closing batch in addition to locking the period.
Fiscal period closing batches will be generated if:
• The period closing date coincides with the Legal Entity's Fiscal Period End date (as specified
for each chosen Legal Entity in CRM) and;
• If there are Revenue and/or Expense accounts in that period with outstanding balances.
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If the closing date is not within the fiscal period, or there is no revenue activity during the selected
period, no closing batch will be generated.
10.2.3 Opening Locked Periods

You can also use the Fiscal Period Manager to open locked periods. Once a period is unlocked, users
can enter new batches with GL Dates that fall within the reopened period. Opening a locked period
will also force the Fiscal Period Manager to delete any closing batches that may exist within the
period.
As per discussion in the Conceptual Design Session, Deerpath Capital will be closing the P&L
accounts to Retained Earnings. However, it will be available in the system for future use.
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11. Legal Entity Structure

11.1 Overview
First phase of the implementation project will focus on onboarding of investor and investment
cashflows to allow user to manage investments. During the second phase Deerpath Capital will
onboard more data to perform full accounting of above entities.
11.1.1 Legal Entities to be created

Deerpath Capital intends to manage the following funds on Investran as part of Phase I:
LE Name
Deerpath Capital, LP
Deerpath Funding, LP (SBA Leverage)
Deerpath Capital II, LP (SBA Leverage)
Pondfield Capital, LLC
Pondfield Capital Advantage, LP
Pondfield Funding, LLC
Deerpath Funding Advantage IV, LP (SBA Leverage)
Deerpath Capital Advantage IV (US), LP
Deerpath Capital Advantage IV (Cayman), LP
Deerpath Partners, LLC (4A)
Deerpath Partners Holdings, LTD (4B)
Deerpath Loan Funding, LLC (CONA Leverage)
Deerpath Loan Funding (Cayman), LLC (CONA Leverage)
Deerpath Capital IV, LP
Deerpath Partners Holdings Corp., LLC (Bocker)
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11.2 Fund Structure

11.2.1 Fund Structure
Please see the attached document that details the fund in terms of Investran structure.
Key Facts
• Full Accounting
• Purpose
• Portfolio Monitoring
• 2008 as earliest
• Vintage Year
• USD
• LE Currency
Investor Structure
• GP Vehicle
• Vehicles
• LP Vehicle
• Holding Vehicle
• Yes
• General Partner
• Yes
• Limited Investors
• Yes
• Carry Partners
• By Commitment & Closing Date
• Investor Allocations
• Refer section 3.6.1.2 for Dynamic Allocation Rule
• Yes
• Investor IRRs
Reporting Requirements
Quarterly Investment Investor Capital Call / Investor Investment

Statement Portfolio Reporting Distribution IRRs IRRs
Notice
     
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12. Reporting Solution

Investran has a comprehensive reporting solution options:
12.1 Standard Reporting Solution

FIS has included configure the following “In-Scope Standard Reports” to the 'Customised' Solution:
• Financials Statements
o Balance Sheet ILPA
o Income Statement ILPA
o Statement of Cash Flows ILPA
• Portfolio Reports
o Statement Schedule of Investment ILPA
o Statement Portfolio Summary
o Portfolio Level & Vintage IRR*
o Investment IRR*
o Portfolio and Investment Level Cash Flow Reporting
o Asset Yield by Fund*
• Investor Servicing
o Capital Call Notice ILPA
o Distribution Notice ILPA
o Investor Capital Account Statement ILPA
o Investor Capital Account Statement-including IRR, funded and unfunded commitments*
*These are reports which will be developed in Report Wizard and can be exported to excel.
12.2 Report Wizard

Report Wizard is Investran’s powerful tool for “business users” creating customized reports. It allows
extraction any system or user defined field from Investran database without coding. Report Wizard
integrates all Investran entities (such as Investors, Vehicles, Legal Entities, and so on) to “slice and
dice” data according to the specific reporting needs dictated by the user’s query.
Using metadata, Report Wizard eliminates the technical complications of generating reports, by
providing a mechanism to query the database without having to understand the complexities of how
the database is organized. In this manner, you can execute reports with Report Wizard on both
qualitative and quantitative data across all Investran entities and a multitude of conceivable
combinations of those entities.
Using metadata, Report Wizard eliminates the technical complications of generating reports, by
providing a mechanism to query the database without having to understand the complexities of how
the database is organized.
In this manner, you can execute reports with Report Wizard on both qualitative and quantitative data
across all Investran entities and a multitude of conceivable combinations of those entities.
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12.3 Report Wizard with Third Party Reporting Tools

Report Wizard seamlessly integrates with third-party tools to build ‘presentation quality’ reports.
These reports are built and maintained by developers. The solution supports following third-party
tools:
12.3.1 SQL Reporting Services

• RW OLEDB Provider Service as main Investran data source
• Allows user to combine multiple data sources
• Dynamic reporting with drill through capabilities
• Presentation quality reports, exports to PDF, Word, Excel
• Support for integration to Investran Web application
• Can be embedded into custom applications through standard report viewers
• Deployment options are through a SSRS server or distributed with applications through client-side
reporting
12.3.2 Report Wizard Data Provider Tool

Investran Data Provider is an independent component that allows you to access Report Wizard
reports using third party reporting tools. The Data Provider does not access the raw Investran data
directly, rather it interacts with the reporting tool of your choice, such as Crystal Reports, at a very
high level and calculates the report results dynamically using pre-defined Report Wizard reports.
The Report Wizard reports are designed and updated independently of the Investran OLE DB
Provider using Report Wizard. Consequently, a Report Wizard report must already be defined in
the Investran reporting database before a reporting tool can recognize the report through
the Investran OLE DB Provider.
12.4 Report Wizard with Microsoft Excel

Report Wizard seamlessly integrates with Excel Workbooks using ‘Report Wizard Data Provider Tool’,
which allows the user to build:
• Presentation Quality Reports

• Complex Calculation Models (e.g. Waterfall)
12.4.1 Push Data Approach

The solution allows to user to export data from Report Wizard to Excel and re-format/re-apply
formulas and pivots to the extracted data. With the integration, you can execute the Report Wizard
reports from within Excel, while retaining the formats, formulas, and pivots set in Excel.
12.4.2 Pull Data Approach

Excel can pull data from the solution using Investran Data (OLEDB) Provider. The Data Provider will
run the report in Excel and populate on the desired worksheet. This data can be used to build custom
formula, format, chart and logos leveraging Excel Functionality.
12.5 Reporting Services
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Reporting Services has ability to generate & deliver documents with customisable Word Templates
with mail merge functionality, delivers as PDF via email, fax, print or web portal. This is typically used
for used for generating and delivering Capital Call or Distribution Notices
You can include a customized email message or fax cover for each package and then compile the
packages and schedule them for delivery to clients by a variety of methods, such as email or fax.
Reporting Services includes a Process Management console where you can monitor the generation
and delivery processes taking place on the reporting server or you can use the Reminders utility to
receive notifications once a process has completed.
12.6 Report Wizard Data Sources

Following data sources are available in Report Wizard:
12.6.1 Reporting Data Points

The Report Wizard Solution allows the user to pick any static items from Investran Web or Accounting
modules. This will include all system and user user-defined fields (UDFs).
12.6.2 Reporting Aggregation with Hierarchies

The Solution has ability to aggregate data from various transaction types into “Transaction Hierarchy”.
The solution stores each debit amount as negative and credits amount as positive. The solution is
then able to aggregate the transactional data into ‘hierarchies’ such as below:
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12.6.2.1 Investor Reporting Hierarchies

Following is the graphical illustration of Investor Net Contribution Hierarchy:
The solution will allow the user to map custom transaction types to the following set of pre-defined
hierarchies.
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Unfunded Investor Commitment
The solution will allow the user to calculate Unfunded Investor Commitment using following hierarchy:
• Unfunded investor commitment

• Investor Commitment (+)  Standard Memo Transaction Type
• Contributions from Investors (-) 
• Managements Fees In Commit. (-)
• Recallable Distribution to Investor (-)
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12.6.2.2 Investment Reporting Hierarchies

Following is graphical illustration of Investment Hierarchies:
Unfunded Deal Commitment
The solution will allow the user to calculate Unfunded Deal Commitment using following hierarchy:
• Unfunded Deal commitment

− Deal Commitment (+)  Memo Transaction Types
− Purchases (-)
12.6.2.3 User-defined Reporting Hierarchies
Although system hierarchy Hierarchies can be modified by rearranging and adding new transaction
types or G/L accounts, they have been designed so that the basic structure of the Hierarchies
themselves cannot be changed. Therefore, the System Hierarchies alone may not be flexible enough
to suit more complex reporting needs.
The solution will allow the user to build user-defined Transaction and Accounts hierarchies can be
customized easily by adding user-defined reporting hierarchies to provide maximum reporting
flexibility.
Groups or categories of financial elements can be created as hierarchies and populated with the
relevant transaction types or G/L accounts to create customized financial information and reports.
The solution is very flexible and there is no limit to the number of user-defined hierarchies that can be
created, nor the number of sub-hierarchies that can be grouped under a single hierarchy.
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12.6.3 Performance Calculations

The Report Wizard Solution provides a full set of dynamic performance measures to report on data at
any level (such as Position Deal, Legal Entity, and so on) or along any attribute thereof (such as
geographic area, industry, asset class, and so on).
12.6.3.1 Time Periods

Report Wizard's performance measures are calculated using Investran general ledger transactions
that represent cash flows, market values, fees, and more. Performance measure data can be
calculated for any standard time (LTD, YTD, MTD, DTD) as well as custom time periods and they can
also be calculated using annualization when appropriate.
12.6.4 Performance Measures

• Internal Rate of Return (IRR) – Annualized
• Internal Rate of Return (IRR) – Non-Annualized
• Time Weighted Rate of Return (TWRR) – Annualized
• Time Weighted Rate of Return (TWRR) – Non-Annualized
• Distribution Value to Paid-In Capital (DVPI)
• Total Value to Paid-In Capital (TVPI)
− This performance measure calculates the ratio of contributions to distributions (inflows versus
outflows) - in other words, the ratio of total value to paid-in capital (TVPI)
• Total Value to Paid-In Capital (TVPI) - Benchmark
− This performance measure is like TVPI, based on benchmark indices from Market Data are
used to determine "what if" scenarios. For example, it can be used to simulate the IRR had
the cash flows been invested in an index such as the S&P 500.
• Multiple of Invested Capital (MOIC)
• Paid in Capital (PIC) and PIC Multiple
• Residual Value to Paid in Capital (RVPI)
52
13. Security Manager

The solution has an enhanced security model, which is based on four key concepts:
Domains Users
Teams Entitlements
• Legal
Entities
• Contact
User belongs to Team entitles to Domain • Investors
• Investments
• Opportunity
13.1 Investran User

Each Investor User is defined as a user on SQL Server. Each user would be created as a contact on
Investran database. Following are the key points for each user:
• Each user should belong to at least one team

• A user may belong to different teams
53
13.2 Team
Teams are set up to reflect groups of users who share common access rights over entities or have
certain responsibilities. Teams are solely related to users and say nothing about entities or Domains.
A user may belong to multiple teams thus have access to multiple domains. Domains
Related entities are grouped into domains in a manner which best represents how these entities are
related to each other and to the teams that will work with them. Domains are solely related to entity
records and say nothing about users and their access rights.
Following are the rules:
• An entity must belong to one and only one domain

• One domain can include multiple Entity Types
Following entities are associated with a domain:
Entities with Domain Entities inheriting Domain Entities without Domain
• Activities • Securities – from Issuer • Lookups

• Contacts • Income Securities – from Issuer • UDFs
• Deals • Accounting Entries – from Legal
• Investors Entity
• Issuers • Portfolio Deals – from Legal Entity
• Legal Entities • Portfolio Positions – from Legal
• Opportunities Entity
• Positions • Vehicle Accounts – from Legal
Entity
• Securities
• Investor Accounts – from Legal
• Vehicles Entity
• Positions – from Deal
54
Domains: GP & LP entities will need to be in different domains and the Users added to the Teams
detailed in 13.2 will further delegate access.
13.3 Entitlements
Entitlements define the level of functional access a team should a specific domain. The user must
use Team Security to grant Entitlements to a Team over the Entity Types that exists in a specific
Domain.
13.3.1.1 Investran Global Domain

All teams have full access to Investran Global Domain.
• Full access to Fund Raising Opportunities

• Full access to legal entities
• Read access to Organizations
13.4 Entitlements
Team’s access rights are defined by following entitlements:
1. Domain Access 2. Utilities & Management
4-Level
Entitlements
4. RS Packages &
3. Lookups & Modules
Active Templates
13.4.1 Domain Entitlements

Using Team Entitlements, you can define a team's access level (that is, read, add, delete, and so on)
for each entity over selected domains.
Entitlement Definition
Level
Read Grants access to read/view entities.
Add Grants access to add entities.
Update Grants access to modify existing entities.
Delete Grants access to delete entities.
55
Post For Accounting entries, grants access to post transactions that are in Held status.
Once posted, the transactions cannot be modified.
For Investran Web entities, grants access to set the Maker/Checker Review Status
to Approved.
Unpost Grants access to unpost transactions that are in Posted status.
Execute Grants access to execute Investran processes such as business events and active
templates.
Rollback Grants access to rollback an Investran process that was successfully executed.
Import Grants access to import data using Data Import.
This group includes access to business event templates, import jobs and templates, and Investran
entities such as Investors, Legal Entities, and Opportunities. There are six possible levels of
entitlements for Investran entities: read, add, update, remove, post, and import. For Accounting
Entries, there is an additional level for unposting transactions; for business event templates, there are
additional levels for executing and rolling back business events.
Entitlement Description
Account Manages domain entitlements for the Accounts.
Accounting Entries Manages domain entitlements to Accounting data in the following
tools: Accounting module, Active Template Manager, and the Investran
Web Import Utility. To work with Accounting data, the user will need
the Accounting Entries entitlement and the entitlement for the specific
tool, such as the Accounting module.
Activity Manages domain entitlements to Activity data in Investran Web (including
the Activity tab, Activity page, Activity section in other entity pages,
Calendar, and Follow-Up Items list) and the Reminders utility.
Bank Account Manages domain entitlements for Legal Entity, Vehicle, Investor, and
Specific Investor bank accounts.
Note Legal Entity and Vehicle will load partially for users who do not have
read entitlements on the Bank Account.
Business Event Manages domain entitlements for business event templates.
Templates
Data Import Job and Manages domain entitlements for data import jobs and templates (that is,
Template viewing, adding, editing, and deleting jobs and templates). Since jobs and
templates cannot be imported, the Import right is not available for this
entitlement.
To import data using Data Import, users need Import Utility Admin and/or
Import Utility User entitlements, along with access to the entities that will
be created or updated.
Deal Manages domain entitlements to Deal data in Investran Web. In addition,
to work with Accounting batches, the user will need rights to the domains
containing the Deals associated with those batches.
Income Security Manages domain entitlements to Income Security data in Investran Web.
56
Individual Manages domain entitlements to Individual Contact data in Investran

Web.
Investor Manages domain entitlements to Investor data in Investran Web. In
addition, to work with Accounting batches, the user will need rights to the
domains containing the Investors associated with those batches.
Issuer Manages domain entitlements to Issuer data in Investran Web. In
domains containing the Issuers associated with those batches.
Legal Entity Manages domain entitlements to Legal Entity data in Investran Web. In
domains containing the Legal Entities associated with those batches.
Opportunity Manages domain entitlements to Opportunity data in Investran
Web (including the Opportunity tab, Opportunity page, and Opportunities
section of other entity pages). In addition, Opportunity types must be
manually added to the appropriate domain before they are visible
in Investran Web.
Organization Manages domain entitlements to Organization data in Investran Web.
Position Manages domain entitlements to Position data in Investran Web.
Security Manages user permissions to Security data in Investran Web.
Vehicle Manages domain entitlements to Vehicle data in Investran Web.
13.4.2 Utilities and Management:

This group covers access to the various Investran utilities as well as user roles and administrator roles
such as ATM Admin, RS Admin, Team Security Admin and so on.
Entitlement Description
Accounting Configuration Allows the user to modify settings in the Accounting Configuration
table.
Accounting Entries Purge Allows the user to purge deleted batches permanently.
Accounting Module Grants the user read access to the Accounting module.
ARM Admin Allows the user to create, edit, run, and delete Allocation rules from
the Allocation Rule Manager (ARM).
ARM User Allows the user to run Allocation Rules from the Allocation Rule
Manager (ARM).
ATM Admin Allows the user to create, edit, and delete ATs in the Active
Template Manager (ATM).
ATM User Allows the user to perform the following:
Add new AT
Edit, delete, duplicate, run, and simulate ATs, also add VBA code to
newly created ATs
Duplicate, run, and simulate System ATs
57
Lock AT that the user created

Does not allow the user to perform the following:
Set ATs to System
Does not allow the user to perform the following when in System
AT:
Edit or delete AT and Parameters
Insert or remove Driver Reports
Add or remove Auxiliary Reports
Add, edit, or delete Journal Entries and Transaction Templates
Modify VBA code
Business Event User Allows the user to create, save, execute, roll back, and delete
business events.
Custom Applications This entitlement is retained for backward compatibility only.
Dashboard Allows the user to view, create, edit, duplicate, and delete
private Investran Web dashboards. The user can duplicate public or
team dashboards but can save the copy as private dashboard only.
To manage public and team dashboards, the user must have List
Manager access as well.
Fiscal Period Manager Allows the user to lock periods and generate fiscal closing entries
(depending on the Legal Entity configuration) in the Fiscal Period
Manager. To unlock periods, the user must have Fiscal Period
Manager and Fiscal Period Manager Admin rights.
Fiscal Period Manager Allows the user to process periods longer than one year and unlock
Admin previously closed periods in the Fiscal Period Manager.
GL Export Allows the user to export batches with the GL Export Wizard in the
Portfolio Utilities and Lookups console.
Import Utility Admin Allows the user to add, edit, and delete templates and add jobs in
the Import Utility. In addition to all other Import Utility rights, this
user has access to all import jobs and templates, including private
jobs, in domains where they have Read entitlements to the "Data
Import Job and Template" domain entitlement.
Import Utility User Allows the user to add, edit, and delete templates and add jobs in
the Import Utility.
Users with this entitlement can view only the jobs and job templates
they created themselves and public templates. The users also need
access to the entities that will be created or updated.
Income Module Allows the user to access the Income module in the Portfolio
Utilities and Lookups console.
Investran Web Sync. Allows the user to configure the system-wide settings for
Admin the Investran Web Sync feature such as synchronization direction,
default Activity types, and review flags.
Investran Web Sync. User Allows the user to access the Investran Web Sync feature.
Legal Entity Mapping Allows the user to access the Legal Entity Mapping utility in
the Accounting module.
58
List Manager Allows the user to add, edit, and delete public lists in Investran Web.
If the user does not have this level of access, they can only manage
their own private lists.
When checked along with the Dashboards entitlement, the user can
create, edit, duplicate, and delete team and public Investran
Web dashboards. If the user does not have this level of access,
they can only manage their own private dashboards.
Opportunities Manager Allows the user to read and update the Opportunities of other users.
Users without this access level, can read and update only their
Opportunities.
Opportunity Links Allows the user to link Opportunities with portfolio entities.
Page Designer Admin Allows the user to create custom field layouts for Investran
Web using the Page Designer and reset a custom layout to the
default configuration. All users have access to configure their own
Home page in the Page Designer - no entitlements are required.
Report Wizard Admin Allows the user to manage and edit private, public read-only, and
shared folders and reports in Report Wizard. This entitlement does
not regulate report access in Investran Web.
Report Wizard User Allows the user to create and edit public reports and run public
reports in Report Wizard. This entitlement does not regulate report
access in Investran Web.
RS Admin Allows the user to lock and unlock packages as well as modify
Reporting Service's general settings (such as processing location,
SMTP server, and so on).
RS Email/Fax User Allows the user to generate and deliver Reporting Services
packages by print, email, and fax.
Team Security Admin Allows the user to manage entitlements in the Team Security
workspace in Investran Web.
UDF Definition Allows the user to define user defined fields.
Valuation Allows the user to access the Valuation module in the Portfolio
Utilities and Lookups console.
Web RS Report Publisher Allows the user to publish reports to the Investran Web Reporting
Services website.
59
13.4.3 Lookups and Module

The following are the entitlement levels available for Lookups and Modules:
Entitlement Definition
Level
Read Grants access to read/view lookups and modules.
Add Grants access to add lookups and modules.
Update Grants access to modify existing lookups and modules.
Delete Grants access to delete lookups and modules.
Post Post is available only for DX Synchronization and RS User entitlements. Post grants
execute rights. For example, a user with this entitlement can run
DX Synchronization between Investran and DX.
Import Grants access to import lookups using Data Import. Import is available only for the
following: Accounting Lookups, Capitalization, Investment Lookups, Investor
Lookups, Investran CRM Lookups, Market Price and Currency Rate, and Security
Master Lookups.
Read Grants access to read/view lookups and modules.
Add Grants access to add lookups and modules.
Update Grants access to modify existing lookups and modules.
60
14. Data Migration

14.1 Overview
Data migration for historic portfolio and accounting data will be a major part of the implementation.
Phase LE Name Migration Priority
Fund I Full History n/a
Fund II Full History n/a
Phase 1 Fund IIIA Full History n/a
Fund IIIB Full History n/a
Fund IV Full History n/a
14.2 Data Migration Process

The objective of this phase is for Client to migrate any historical Client’s Data into the Solution. This
can be achieved using the Data Import Utility (“DIU”) module.
14.3 Data Migration Activities

Data migration phase consist following activities:
14.3.1 Data Migration Strategy

During the Conceptual Design, FIS will work with Client to determine the data conversion approach for
each type of referential data and transactional data.
FIS will work with Client to produce the data migration strategy for the In-Scope Entities. The
approach will include scope, method, assumptions, sample transactions and methods for
reconciliation. Client will be required to sign off the document before proceeding with the next
migration phases.
14.3.2 Data Preparation
14.3.2.1 Static/Referential Data Gathering & Population:
• FIS will create ‘customized’ Excel-based Data Templates for Client for migration of referential /
static data after the Conceptual Design Blueprint has been accepted by Client.
61
• FIS will provide training and guidance to Client on populating DIU templates.
14.3.2.2 Transactional Data Gathering & Population:

• FIS will provide Excel-based Transactional Data Templates to Client after Conceptual Design
Blueprint has been accepted by Client.
• FIS will provide training and guidance to Client on populating data templates.
14.3.3 Data Loading
14.3.3.1 Static Data Loading & Validation

• Deerpath will be responsible for loading Static DIU templates into the Solution (Investran)
database using DIU and performing validation on static data loaded to the Solution database.
• FIS will provide support, oversight and migration assistance throughout the process.
14.3.3.2 Transactional Data Loading & Validation

• Deerpath will be responsible for loading transactional DIU templates into the Solution (Investran)
database using DIU and performing validation on transactional data loaded into that database.
• FIS will provide support, oversight and migration assistance throughout the process.
.
14.3.4 Reconciliation
Upon completion of data loading, Client will be responsible for performing data reconciliation with
assistance and guidance from FIS. The reconciliation process will consist of the following activities:
• Client and FIS will create Investran Report Wizard reports to extract data for comparison to
source data/reports provided by Client
• Client will gather existing reports for comparison to Investran Report Wizard reports.
• Contributions & Distributions Data will be reconciled each year end against Partner’s Capital
Summary.
• Investment activity will be reconciled each year end against SOI.
• Realized/Unrealized/ Other Income and Expenses will be reconciled against Partner’s Capital
Summary and Financial Statements P&L as of Balance carry forward date for Hybrid Funds and
at year end for Full History Funds.
• Assets & Liabilities will be reconciled against Trail balance and Balance Sheet as of Balance carry
forward date for Hybrid Funds and at year end for Full History Funds.
62
Types of Dataset
There are two type of datasets which are included in the scope of data migration:
14.4 Static / Referential Data

This category involves migrating key data required for transactional data. Static data will need to be
fully migrated before transactional data migration is validated and loaded.
• Contacts (Organizations and Individual)

o Capture all individual and organisational contacts in CRM module. Every Legal Entity,
Vehicle, Investor and Issuer should be created as a contact.
• Legal Entities (and Related Contacts)
o Captures details of Legal Entities to be created in Investran. List of Legal Entities to
be created is available in the conceptual design document.
• Vehicles
o Captures details of vehicles which are created for each Legal Entity.
• Investors (and Related Contacts)

o Captures General Details of Investor
o Captures Specific Details of investor and how it is linked to a Legal Entity or Vehicle.
Capture information for Investor Commitments for closing dates tracked at the
Vehicle level.
• Fund Deals
• Investment Positions
• Security Master: Issuers
• Security Master: Security
• Security Master: Income Security
Vehicles: Groups by GP/LP. Investors coming Feeder into a fund would also be set up as vehicles in
a fund.
14.5 Transactional Data

14.5.1 Migration Approach
The transactional data can be migrated with three approaches and this project includes multiple
different approaches dependent upon the fund:
14.5.1.1 Full History

This approach will be used for the In-Scope Entities is defined as “Full History”. All accounting
transactions will be migrated from inception of the entity and reconciliation must be performed for
each quarter-end report.
Deerpath Capital will use Full History approach to migrate the accounting data entries into Investran,
extracting information from both existing solutions
63
14.5.2 Transactions: Investor Cash flows

All Investor Cash flows will be migrated into the Accounting module. Investor cash flows are of
following types:
14.5.2.1 Key Considerations

• All investor cash flows should be defaulted to “Operations” deals in appropriate currency.
Each receipt of cash from an investor must be tracked as a separate batch so that the actual
transaction date can be populated as the GL Date. Monies received from multiple investors
on the same day can be booked in the same batch.
• All investor cash flows should be entered with correct effective dates to produce accurate
Investment IRRs. A balance forward strategy cannot be followed if the business would like to
produce IRRs.
• The effective date would correspond to the actual date of capital call or distribution whereas
GL Date would correspond to the date on which cash was paid or received.
• Each transaction type included in the batch should be allocated using a “User provided”
allocation rule. This would allow easier reconciliation with historical reports, eliminating any
chance of rounding differences.
14.5.3 Transactions: Investment Cash flows

• All investment cash flows should be defaulted to actual investment deal and position.
• All investment related cash must be tracked as a separate batch so that actual transaction
date can be populated as the GL Date.
• All investment cash flows should be entered with correct effective dates to produce accurate
Investment IRRs. Balance forward strategy cannot be followed if the business would like to
produce IRRs.
• Cash transaction type should be used with “Non-Dominant” allocation rule and Bank
Account should be populated in User Lookup 1.
• All investment cash flows are allocated to investors using an appropriate allocation rule. In
most cases “By Commitment & Closing Date” allocation rule will be used. It will allocate
fund level balances to each investor by their proportion of commitment on the batch GL Date.
• In case of late closing Subsequent Close AT must be executed to reallocate investor balance
for each transaction type. The late closing scenario is discussed later this document.
14.5.4 Transactions: Other

Any transactions which do not fall into the category of investor and investment cash flows would be
included here.

• All P&L transaction type related to a specific investment deal can be defaulted to actual deal
in Investran. Whereas all other transaction should be defaulted to “Operations” deal in the
appropriate currency
• All transaction types are allocated to investors using an appropriate allocation rule. In most
cases “By Commitment & Closing Date” allocation rule will be used. It will allocate fund
level balances to each investor by their proportion of commitment on the batch GL Date.
• Any transaction types such as Management Fees which do not follow by commitment rule
should be migrated with a ‘User provided’ allocation rule.
64
• In case of late closing Subsequent Close AT must be executed to reallocate investor balance
for each transaction type. The late closing scenario is discussed later in this document.
• Bridge Contribution: GL date will be the current date and effective date will be the same.
• Return of Bridge Contribution: GL date will be the current date and effective date will be the
Funding Date.
©2017 FIS and/or its subsidiaries. All Rights Reserved. 65

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Deerpath Capital

1.1 Conceptual Design Workshop .................................................................................................... 7

1.2 Conceptual Design Document Objectives .................................................................................. 7

1.3 Roles and Responsibilities .......................................................................................................... 7

2. Investran Structure Overview ..................................................................................................... 9

2.1 Contacts ................................................................................................................................... 9

2.1.1 Individual Contacts ............................................................................................................... 9

2.1.2 Organisational Contacts ..................................................................................................... 10

2.1.3 Contact Association ............................................................................................................ 10

2.1.4 Contacts Roles & Correspondence Types ......................................................................... 11

2.1.5 Correspondence Types and Deliveries .............................................................................. 11

2.2 Investor Structure...................................................................................................................... 12

2.2.1 Legal Entity ......................................................................................................................... 12

2.2.2 Vehicle ................................................................................................................................ 12

2.2.3 Specific Vehicle .................................................................................................................. 12

2.2.4 Investor ............................................................................................................................... 13

2.2.5 Specific Investor ................................................................................................................. 13

2.2.6 Investor Account ................................................................................................................. 13

2.3 Investment Structure ................................................................................................................. 14

2.3.2 Specific Deal ....................................................................................................................... 14

2.3.3 Position ............................................................................................................................... 14

2.3.4 Specific Position ................................................................................................................. 14

2.3.5 Lots ..................................................................................................................................... 15

2.4 Security Master ......................................................................................................................... 15

2.4.1 Issuer .................................................................................................................................. 16

2.4.2 Security ............................................................................................................................... 16

2.4.3 Income Security .................................................................................................................. 16

3. General Ledger Solution ........................................................................................................... 17

3.1 Chart of Accounts .................................................................................................................. 17

3.2 Transaction Types ................................................................................................................. 18

3.2.1 Default GL Accounts ........................................................................................................... 18

3.2.2 Default Debit / Credit Treatment ......................................................................................... 18

3.2.3 Quantity .............................................................................................................................. 19

3.2.4 Deal Information ................................................................................................................. 19

3.2.5 Transaction Type Attachments ........................................................................................... 19

3.2.6 Transaction Type User Defined Fields ............................................................................... 19

3.3 Custom Accounting Configuration ............................................................................................ 20

3.4 Legal Entity Mapping ................................................................................................................ 20

3.5 Accounting Transactions .......................................................................................................... 20

3.5.1 Batch ................................................................................................................................... 20

3.5.2 Transactions ....................................................................................................................... 21

3.5.3 Deal Information ................................................................................................................. 21

3.5.4 Investor Allocations............................................................................................................. 22

3.5.5 Saving Batches ................................................................................................................... 22

3.5.6 Posting Batches .................................................................................................................. 23

3.5.7 Reversing Batches.............................................................................................................. 23

3.5.8 Deleting Batches ................................................................................................................. 23

3.6 Investor Allocation Rules .......................................................................................................... 24

3.6.1 Static vs. Dynamic Allocation ............................................................................................. 24

3.6.2 Top Down vs Bottom Up Allocation .................................................................................... 24

4.1 Active Templates (ATs) ............................................................................................................ 26

4.2 Business Events (BEs) ............................................................................................................. 26

5. Document Management ............................................................................................................ 27

5.1 Storing Documents ................................................................................................................... 27

5.1.1 Upload as Attachment ........................................................................................................ 27

5.2 Legal Entity Consolidation ........................................................................................................ 27

5.2.1 Grouping Legal Entities ...................................................................................................... 27

5.2.2 Eliminating Entries .............................................................................................................. 28

6. Accounting Business Process ................................................................................................. 29

6.1 Fund Setup Process ................................................................................................................. 29

6.1.1 Legal Entity Setup ............................................................................................................... 29

6.1.2 Vehicle Setup ...................................................................................................................... 29

6.2 Investor Setup Process ............................................................................................................. 30

7. Investor Transactions Processes ............................................................................................ 31