Glossary

Overview

NAVdryx renders stored identifiers as the wording below wherever they appear in the product, so the term you see on screen and the definition here always match. This page does not attempt to cover every word used in fund finance — it covers the vocabulary NAVdryx itself surfaces.

Accounting standards and bases

US GAAP

Generally Accepted Accounting Principles used in the United States — the default reporting basis a fund selects on its fund record.

IFRS

International Financial Reporting Standards — the alternative reporting basis a fund can select instead of US GAAP.

ASC 946 fair value

The FASB accounting standard governing how investment companies, including private funds, measure and report the fair value of their investments.

ASC 842

The FASB lease accounting standard.

ASC 820

The FASB fair value measurement standard, defining fair value and the disclosure framework behind the platform's valuation work.

ASC 606

The FASB revenue recognition standard.

IFRS 16

The international lease accounting standard — IFRS's counterpart to ASC 842.

3(c)(1)

An Investment Company Act exemption from registering as an investment company, available to a fund with no more than 100 beneficial owners — one of the regulatory classifications a fund record can carry.

3(c)(7)

The Investment Company Act exemption for funds sold only to qualified purchasers, with no cap on investor count.

Day-count and amortization conventions

30/360

A day-count convention that treats every month as 30 days and every year as 360, used in some interest and proration calculations.

Actual/365

A day-count convention using the actual number of elapsed days over a 365-day year.

Actual/360

A day-count convention using the actual number of elapsed days over a 360-day year.

Actual/actual

A day-count convention using the actual number of days in both the elapsed period and the year.

Straight line

An even, equal-installment method of recognizing an amount — an expense or a fee — over a period, rather than a schedule that varies period to period.

Day count

The convention used to measure the number of days between two dates for proration or interest — see the specific conventions above.

Aging buckets

Current

In an aging report, the bucket for amounts not yet past due.

1–30 days

An aging bucket for amounts between 1 and 30 days past due.

31–60 days

An aging bucket for amounts between 31 and 60 days past due.

61–90 days

An aging bucket for amounts between 61 and 90 days past due.

Over 90 days

An aging bucket for amounts more than 90 days past due.

Tax forms and regimes

K-1

The US tax form (Schedule K-1) a fund issues to each investor reporting its share of the fund's income, deductions, and credits for the year.

K-3

The US tax form (Schedule K-3) supplementing the K-1 with international tax information relevant to certain investors.

W-8

The family of US tax forms a non-US investor files to certify its foreign status and claim any applicable tax-treaty benefits.

W-9

The US tax form a US investor files to certify its taxpayer identification number.

W-8BEN

The W-8 variant filed by a foreign individual.

W-8BEN-E

The W-8 variant filed by a foreign entity.

W-8IMY

The W-8 variant filed by a foreign intermediary or flow-through entity.

Form 1099

The US information return reporting certain payments made during the year, such as interest or miscellaneous income.

Form 1042

The US return reporting tax withheld on income paid to foreign persons.

QSBS

Qualified Small Business Stock — US stock that, if held long enough, can qualify an investor for a capital-gains tax exclusion on exit.

UBTI

Unrelated Business Taxable Income — income that can create a tax liability for otherwise tax-exempt investors, relevant to whether a blocker entity is used.

ECTI

Effectively Connected Taxable Income — US-source income treated as connected to a US trade or business, relevant to non-US investors and blocker structuring.

FDAP

Fixed, Determinable, Annual or Periodical income — a category of US-source income subject to withholding tax for foreign investors.

FATCA

The Foreign Account Tax Compliance Act — a US law requiring reporting on foreign financial accounts and non-US entities' US owners.

Common Reporting Standard

The OECD's international standard for the automatic exchange of financial account information between tax authorities.

Vehicle and entity types

Fund LP

The fund vehicle itself — the entity LPs subscribe into.

General partner

The entity that manages the fund and holds its own commitment alongside the LPs.

Limited partner

An investor in the fund.

Management company

The entity that earns management fees and employs the deal team.

Carry vehicle

The entity through which carried-interest allocations flow.

Alternative investment vehicle

A parallel vehicle used to route a subset of LPs or a subset of deals alongside the main fund.

Special purpose vehicle

A single-purpose entity, typically holding one deal or one asset.

Blocker

A corporate entity interposed to block UBTI or ECTI exposure for certain investors.

Feeder

A vehicle that pools LPs, often by jurisdiction or investor type, before investing them into the main fund.

Co-investment vehicle

A vehicle that lets LPs, or outside investors, invest alongside the fund in a specific deal.

Performance measures

DPI

Distributions to Paid-In capital — cumulative distributions divided by cumulative paid-in capital.

RVPI

Residual Value to Paid-In capital — the value of a fund's remaining unrealized holdings divided by paid-in capital.

TVPI

Total Value to Paid-In capital — DPI plus RVPI, the combined realized-and-unrealized return multiple.

MOIC

Multiple on Invested Capital — total value returned divided by capital invested.

IRR

Internal Rate of Return — the annualized return implied by a fund's dated cash flows, calculated by XIRR by default (modified Dietz is a selectable alternative, locked once a fund's first reporting period is approved).

NAV

Net Asset Value — the current value of a fund's holdings, net of liabilities.

Payment rails

ACH in

An incoming Automated Clearing House transfer.

ACH out

An outgoing Automated Clearing House transfer.

SWIFT

The international messaging network banks use to instruct cross-border wire transfers.

Fedwire

The US Federal Reserve's real-time wire transfer system.

SEPA

The Single Euro Payments Area — the standard for euro-denominated bank transfers.

Real-time payments

Instant bank transfer rails, as opposed to next-day ACH or wire cutoffs.

Governance and compliance

AML / KYC

Anti-Money Laundering and Know Your Customer — the checks performed on an investor during onboarding to confirm identity and screen for financial-crime risk.

Segregation of duties

The control principle that no single person can both initiate and approve the same sensitive action, such as a wire-instruction change.

LPAC

Limited Partner Advisory Committee — the LP body a fund consults on conflicts of interest and certain governance matters.

Most-favoured-nation

A side-letter provision letting an LP elect into more favorable terms granted to another LP.

Prepared by client

The standard audit term for a document or schedule the fund, rather than the auditor, prepares as part of the audit file; PBC lists track what is owed and by when.

Single sign-on

Authenticating once with an identity provider to access NAVdryx, rather than a separate NAVdryx-only password.

SCIM

System for Cross-domain Identity Management — the standard protocol for automatically provisioning and deprovisioning user accounts from an identity provider.

Multi-factor authentication

Requiring a second proof of identity beyond a password to sign in — enforced by default for GP-side users.

Authenticator app

A time-based one-time-passcode app used as one of the supported multi-factor authentication methods.

AI provenance labels

AI suggested

A label marking a value or match an AI step proposed, pending human confirmation.

AI inferred

A label marking a value an AI step derived rather than a person entering it directly, pending confirmation.

AI summary

A label marking AI-generated summary text, kept visibly distinct from the source record it summarizes.

Optical character recognition

Extracting text from a scanned document or image so it can be read and processed.

Documents and ledgers

Accounts-payable bill

A bill owed by the fund or management company, tracked through approval to payment.

Accounts payable

Amounts owed by the fund or management company to its vendors.

Accounts-receivable invoice

An invoice for amounts owed to the fund or management company.

General ledger

The connected accounting system holding the fund's official books.

Draft journal entry

A journal entry NAVdryx has generated and had approved internally, posted to the general ledger as unposted pending the controller's final action there.

LP capital statement

The periodic report showing an LP's capital account activity and balance.

Limited partnership agreement

The fund's governing document, defining the economic and governance terms LPs and the GP operate under.

Non-disclosure agreement

A confidentiality agreement, commonly used during fundraising or diligence.

Purchase and sale agreement

The agreement governing the purchase or sale of an asset or interest.