Setting up your Fund+
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      1. Help Center
      2. Fund Managers
      3. Setting up your Fund+

      How do I set up Fund+?

      As you set up your Fund, use this guide for in-depth information on the fields you will fill out. If you have any questions, you can reach out to operations@sydecar.io

      Fund Name

      • The fund will be under the master umbrella and show up in this format
        on fund-level reports [Fund Name], a Series of [Master Name].
      • Investors in your fund will see this name, but it will not be the name
        on the cap table of your companies. You will create an SPV under the master umbrella for each investment your fund makes.


      Target Fund Size

      • This is what you are aiming to raise from investors for your fund.
      • This is displayed to your investors as your target raise.


      Maximum Fund Size

      • This is the maximum amount your fund can raise and will require the
        majority of investors to agree if you want any changes.
      • This will be in the fund’s operating agreement.


      Minimum Fund Size

      • This is the minimum commitment you need from investors to start
        making investments.
      • This will be in the fund’s operating agreement.


      Initial Capital Call Due At Signing

      • This percentage will be called from each investor immediately upon
        them signing the subscription agreement.
      • If you do not wish to call capital from investors immediately upon
        them signing the subscription agreement, you may enter 0% for this.
      • Capital calls are due 10 business days after the date the notice is sent.


      Final Close

      • This is the number of months you will be able to invite new investors
        or accept increased commitments for your fund.
      • The clock starts as soon as the first investor signs their subscription
        agreement.
      • This will be in the fund’s operating agreement.


      Investment Period

      • This is the number of years after the Final Close that you may continue
        to make investments.
      • Add the final close and the investment period together to get the total
        number of years you may deploy capital.
      • This will be in the fund’s operating agreement.
               

      Minimum Commitment Amount

      • This is the minimum amount investors will be allowed to invest in your
        fund.
      • Sydecar has a minimum of $1,000 for a fund investment, so you won’t
        be able to reduce it below that.
      • Once it’s time for you to invite investors, you can invite them with a
        specific commitment amount or a range.


      Management Fee


      This will be paid quarterly in advance to the Advisor and may be customized by investor when you invite investors. This will be in the investors’ subscription agreement when you invite them to invest in your fund.

      Options:

      • Life of the Fund: The percentage you pick is charged annually based on commitments and paid quarterly in advance for the life of the fund.
        Ex: $100k Commitments, 2% per annum
        = $100k x .02 = $2k/year paid in 4 payments of $500
        ($20k over 10 years or however long the fund is around)
      • Investment Period: The percentage you pick is charged annually based on commitments and paid quarterly in advance through the end of the investment period.
        Ex: $100k Commitments, 2% per annum, 3 year period
        = $100k x .02 = $2k/year paid in 4 payments of $500 ($6k paid over 3 years)
      • Decreasing: The percentage you pick is charged annually for the investment period and the Annual Reduction is the amount by which you want to reduce that annual percentage. The Annual Reduction will no longer be applied once the Minimum is reached.
        Ex: $100k Commitments, 2% per annum, 3 year period, 0.25% Annual Reduction, 1% Minimum =
        Years 1-3: = mgmt fee = 2%, $2k/year ($6k paid over 3 years)
        Year 4: mgmt fee = 1.75% per annum ($1,750 paid) Year 5: mgmt fee = 1.50% per annum ($1,500 paid) Year 6: mgmt fee = 1.25% per annum ($1,250 paid) Years 7 - End: mgmt fee = 1% per annum ($1k per year)

      Carry


      This is the percentage of profit that will go to the Advisor. We can assist with a carry share agreement if you want all or part of carry to go to a different entity. You may choose to have a hurdle that needs to be reached before you start taking carry.

      Options assume $100k investment, $400k distribution ($300k profit):

      • Ex: Default Carry 20% = $60k carry
      • Ex: Default Carry 20%, 2x hurdle = $40k carry ($200k remaining profit after 2x is returned)

      Timelines


      Wait to invite investors until you are ready to launch your fund. When an investor signs, Sydecar countersigns, and the clock starts ticking on your Final close and Investment Period.

      Group 7 (1)
      Call capital whenever you are ready. If you entered an initial capital call, capital will be called from an investor as soon as the investor signs. If you did not choose an initial capital call, you can reach out to operations@sydecar.io with the percentage you want to call and the date you want to call capital.


      In order to make investments, you must reach the minimum you entered when creating the fund, and you must have enough cash from investors to pay management and Sydecar fees. You may not use prepaid contributions to make investments.


      Once you create an investment on Sydecar, we will reach out to the target company to provide wire instructions (via our secure, third-party verification system, DoubleCheck) and the e-sign agreement(s). We upload that information when received, and you will request close. We will then sign and initiate payment:

      Group 8