The Funds functionality in Baseline is designed to help fund managers efficiently create, manage, and track the operations of their investment funds. Funds can also be linked to an Offering to help you attract new capital into the Fund.
How to Create a Fund in Baseline
Creating a new fund in Baseline is straightforward. This step-by-step guide will help you set it up, configure its key settings, and prepare it for investor contributions and management.
1. Navigate to the Funds Section
From the left-hand menu in Baseline, click on Funds.
In this section, you’ll see a list of all existing funds you are managing.
2. Click on Add Fund
In the top-right corner of the screen, click the Add Fund button to start the fund creation process.
3. Step 1: Fund Information
You will need to enter the basic information for the fund:
Fund Name: Enter a name for the fund. This is the only required field in this section. The name should be descriptive enough for easy identification.
Type of Fund: Choose the type of legal structure for the fund (e.g., Corporation, LLP, etc.).
Jurisdiction of Incorporation: Select the state or location where the fund is legally incorporated.
Tax ID: You can enter a tax identification number (optional).
Phone Number: Optionally, add a contact number for the fund.
Once you've completed this section, click Next to proceed to the next step.
4. Step 2: Primary Address
Enter the fund’s primary address where official correspondence will be sent. This field is optional, but providing this information can help maintain proper documentation.
You can choose to leave this field blank if you don't need it.
Click Next to continue.
5. Step 3: Interest Calculation Configuration
Here, you will configure how the fund will calculate and distribute returns to investors:
Interest Calculation Method:
Simple Interest: Select this option if you want Baseline to automatically calculate and distribute interest based on investor contributions. Interest will be computed regularly based on the classes, contribution amount, rate, and distribution schedule (e.g., monthly, quarterly).
Manual Dividend Calculation: Choose this if the fund’s structure is more complex, such as a tiered fund or one with a revenue-sharing model. In this case, you will upload distribution information manually.
Distribution Schedule:
Select how often distributions will be made: Monthly, Quarterly, or Annually.
This setting defines the period for automatic distributions if Simple Interest is selected.
After configuring the interest calculation method and schedule, click Save to create the fund.
6. Fund Creation Complete
Once saved, the fund will appear in the Funds section of the List. You can now proceed to configure the fund further by setting up classes, managing investors, and making investments.