How to create a deal

Create a Deal (Fund Manager)

Step 1:

Open Allocations, in the SPV section, click on the Create Deal button on the right-hand side. After clicking on the button, a pop-up dialog will appear.

Step 2:

Add basic details like Deal Name, choose a category of deal from the dropdown menu, which consists of the following categories:

• SPV

• Deal

• Migration

Step 3:

Fund managers can access a detailed dashboard for their created deal. Where they can choose the type of deal they want to create. As of now, Allocations support 4 types of Product Types:

• Micro SPV (Raise upto $100,000)

• Standard SPV

• Custom SPV

• Traditional Fund

Step 4: After selecting the type of SPV, Fund Managers need to add basic information about their SPV. i.e, Details about Deals, Roles, Assets, Entity, Legal Documents, Banking & Organization details.

4a. Deal Basics

• Name of Deal → This is the name of your SPV deal on Allocations and on the deal page for investors. [Not the name of the SPV entity]

• Target Raise Amount → Set the total amount needed to be raised.

• Minimum Investment Amount → The minimum amount an investor can invest in the SPV.

• Management Fee → Fee charged for managing the SPV by the Fund Manager from investors.

• Carry Fee (Performance Fee) →

• Management Fee Frequency → Once (for SPVs) or Annual (for funds)

• Offering Type → 506(b) or 506(c) (choose one based on SEC compliance plan)

• Investor Type → Accredited Purchasers or Qualified Purchasers (select as applicable)

• Memo → Short overview of the deal for investors

• Estimated Closing Date → dd-mm-yyyy format

• Financial Statements → Choose preferred option (e.g., None, Quarterly, Annually)

4b. Roles within the deal

• Fund Manager (This is the signer on the private fund. The person or designated individual who makes the management decisions for the private fund, operates the bank account, and acts as the partnership representative for tax filings.)

• Advisor (An advisor to a private fund is a financial professional or firm that provides expert guidance on investment strategy and management to a private investment fund. This advisor typically helps in asset allocation, risk management and may also be responsible for regulatory compliance and reporting. Their role is crucial for the fund's performance and adherence to its investment objectives.)

Add basic details about the Fund Manager/Advisor, if an organisation is managing the fund, or an individual is managing the fund. After completing basic details, you'll be forwarded to advanced details where Fund Managers/Advisors will need to add details about their entities:

• Legal Name → Name of individual/corporation/LLC as written on government documents

• Country of Formation

• Date of Formation

• Tax Information

• Mailing Address

• Entity Structure

• Identity Documents

4c. Creating the Asset for the deal

Add basic details about the Legal name of the portfolio company & website & choose the type of asset we are going to add in the deal. After adding all the information & relevant documents for the asset, we will proceed to the next step.

4d. Legal Documents

Now Fund Managers need to add all the relevant Legal Documents into this section. Select from the options available for legal documents of the SPV.

Options available:

• Allocations Templates (our standard templates)

• Allocations-approved Custom Docs (use a template previously reviewed by Allocations)

• New Custom Docs (use a new set of docs that need to be reviewed by Allocations)

4e. Banking

Fund managers has to chose a banking provider from the following selection:

• Standard Allocations Banking Provider

• Crypto Allocations Banking Provider

• Custom Banking Provider

• Custom Crypto Provider

4f. Organization (The organization to create the Entity under)

Fund managers can add the details of the organization in the pop-up screen after creating the organization. Fund Managers have to select the type of Entity Structure:

• Standalone (Independent Entity)

  • Enter the Entity (This selection reflects the Legal type of your Entity.) - LLC or LP

  • Entity Name

  • EIN of the Entity

• Master + Series (Series Under A Master)

  • Choose Entity Type (similar to above)

  • Select Master Entity (Allocations provides it by default)

  • Add Entity Details like name & EIN.

That's it, you have succesfully created a deal on Allocations!