Closings App
The closings app manages the process of adding new investors to a fund through closings.
What is a Closing?
A closing represents new investors joining the fund. Key terminology:
- To close (verb): The action of adding new investors
- Closing (noun): The event of adding new investors
- Initial closing / First Close: The first time investors commit to the fund
Funds typically have multiple closings as they complete fundraising, with earlier investors often receiving preferred terms.
Fund Accountant Workflow
Before a closing, fund accountants must:
- Send commitment documents to new LPs
- Process any side letters with preferred terms
- Store signed documents
- Add LPs to tracking systems
- “Catch up” new LPs to fund activity
Maybern Closing Workflow
A closing creates a FundFamilyEvent with sub-events:
Sub-Event Order
The order depends on calculation dependencies:
| Scenario | Order |
|---|
| Fees depend on capital activity | Equalization first |
| Capital activity depends on fees | Fee true-up first |
Closings are blocked when fees and capital activity are mutually dependent (circular dependency).
1. Deemed Equalization
Even without cash movement, the system calculates what equalizations would be:
- Creates “deemed” transactions (
is_equalization_accrual=True)
- Shows downstream effects in preview
- Used for fee basis calculations on new LPs
See Equalizations for details.
2. Fee True Up
Catches up fees immediately with the closing:
New LPs: Calculate fees for all previous fee charge events
Existing LPs may change if:
- Fees depend on capital contributions (deemed equalization changes basis)
- Fee offsets need to be equalized among more investors
See Fees for details.
3. Allocation Rule Update
Updates allocation rules to include new edges for new LPs.
Models
class Closing(FundFamilyEvent):
"""
Wrapper on FundFamilyEvent for closing-specific logic.
SecurityOwnerships are linked via FK on SecurityOwnership table.
"""
pass
User Interactions
Actions that invalidate sub-events (requiring refresh):
| Action | Effect |
|---|
| Add/remove commitments | Recalculate all sub-events |
| Change closing date | Recalculate all sub-events |
| Change equalization interest date | Recalculate deemed equalization only |
Side Effects
When a closing is created:
- Securities linked -
SecurityOwnership records linked to closing
- Deemed equalization - Calculated and written as accrual transactions
- Fee true-up - Prior period fees calculated for new LPs
- Allocation rules updated - New edges added for new investors
