Silo Category Hub

Fund Accounting Hub

Deep dive into investment fund structures, Net Asset Value (NAV) calculations, distribution waterfalls, and general partner bookkeeping.

Guided learning progression

Step 1

Assets Under Management

AUM represents the total market value of assets that an investment company or fund manager manages on behalf of clients.

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Step 2

Expense Ratio

The expense ratio is the annual fee expressed as a percentage of a fund's average net assets that shareholders pay to cover operating expenses.

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Step 3

Net Asset Value

NAV represents the per-share value of a mutual fund or ETF, calculated by dividing the total value of all assets minus liabilities by the number of outstanding shares.

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Step 4

Fund Accounting

Fund accounting is a specialized accounting system used by investment funds to track the financial activities and calculate the NAV of investment portfolios.

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Step 5

Distribution Waterfall

A distribution waterfall is the method by which private equity and hedge fund distributions are allocated between limited partners (LPs) and the general partner (GP) in a specific sequence.

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Net Asset Value (NAV)

NAV represents the per-share value of a mutual fund or ETF, calculated by dividing the total value of all assets minus liabilities by the number of outstanding shares.

Fund Accounting

Fund accounting is a specialized accounting system used by investment funds to track the financial activities and calculate the NAV of investment portfolios.

Assets Under Management (AUM)

AUM represents the total market value of assets that an investment company or fund manager manages on behalf of clients.

Expense Ratio

The expense ratio is the annual fee expressed as a percentage of a fund's average net assets that shareholders pay to cover operating expenses.

Distribution Waterfall

A distribution waterfall is the method by which private equity and hedge fund distributions are allocated between limited partners (LPs) and the general partner (GP) in a specific sequence.

Related tools & models

Waterfalls & Carry SimulatorModel distributions sequence between LPs and GP partners.NAV Accounting SpreadsheetMark securities to market and deduct expense ratios.

Topic deep dives

9 min readDaily NAV Calculations: Behind the Scenes

How fund administrators price assets daily, accrue management fees, and publish Net Asset Value.

11 min readPE Waterfall Models: Allocation & Sequencing

Analyzing American vs. European waterfall schemes, hurdles, carried interest, and clawback clauses.

6 min readAUM vs. Fund Size: Accounting Nuances

Understand how uncalled capital commitments impact Assets Under Management (AUM) and fee calculations.

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