How Investment Funds REALLY Track & Budget Money (Most Get This Wrong)

Welcome to the stage, Mr. Adam Campbell.

My background experience started with Bridge Investment Group in the, the early days with John Pennington. And my job on the back office was to start a fund, to stabilize a fund and make sure that people could go out and buy a whole bunch of assets and raise a whole bunch of capital. So we'd start a fund, move along with Bridge for a little bit. And then the guys would come and be like, you know what's better than a multifamily fund? Let's do a commercial fund. And they'd be like, that's great. Let's start one. And they start that and 6 months later, they're like, and if you like a commercial fund, maybe we should do a senior housing fund. And it just kept snowballing and snowballing. It got to the point we had 5 different strategies across 7 different funds of about $5 billion of assets under management. And my job was to catch all of the funds and stabilize them as fast as these guys could think them up and sell them. That was a lot of work. So it was audits, it was tax returns, it was cash flow management, it was capital calls, distributions, rebalancing, audits. On all sorts of different fronts, compliance reports. So I had to make sure that I could figure out all of those at scale in a very, very, very short timeframe. So when it comes down to what you guys are dealing with, I've been down that road drastically so many times. And there's a couple of key takeaways that I want to teach you guys about putting together your fund budgets and what you guys need to know as operators to be able to cover your finances. Most people think that, you know, it's all pretty in the background, but I'm pretty sure this is actually what you guys see at the end of the day when you're looking at those Excel spreadsheets and finances. The first thing I wanna make sure you guys know, if you don't take away anything else, there's 2 things that I think you really need to know about finances. And the first one is the Walmart versus Costco analogy. I'm sure every one of you, how many of you guys have been down to the bread aisle in Walmart? And when you look at that bread aisle, how many of you know exactly what you're looking for? How many different choices are there in bread in the Walmart bread aisle?

There's 40.

There's so many of them. And it's super easy to go down that bread aisle and look at all the options and pick up the loaf that you've got every time and you look at it and go, well, what about that one? And this one's a little bit cheaper and they're having a sale on this one. And I should be eating that one because it's a little bit more healthy. And you just drive yourself nuts because there's so many options and you just get analysis paralysis. And I'm sure having talked to many of you guys, a lot of people when they start looking at numbers, they're just looking at it going, well, there's that number and should I know what this one means? And do I go over there and how's it? And you just shut down really easy. And for me, I want you guys to remember that looking at accounting, there can be tons and tons of stuff on it. But I look at it and say the best way to navigate it is not the Costco bread aisle or the Walmart bread aisle. It's actually the Costco kayak aisle. Just imagine in your heads, you can close your eyes. If you went to Costco and you were looking for a kayak, how many kayaks are they going to show you? 1, 2. They're like, do you want an inflatable or a plastic or a kids or an adult? And when you walk out of there with a kayak at Costco, how many of you are going to wonder, I wonder if I should have got the whole wheat option. You don't, because they just put it right in front of you and say, if you need a kayak, we've already figured it out. We've standardized it. We've streamed— you're going to get the best price for exactly what you need. And you don't have to worry about the Walmart bread aisle of options. So here with Funnel Launch, what we're trying to do is look at it and go, we're trying to go the Costco analogy, not the Walmart analogy. There's a million options out there, but that's not what we want to give you. We want to be straightforward for it. The other one is basic math. So something that I want you guys to know as non-accountants is that most people don't do more than 2 steps of math. Let me give you the example. When you're hearing this massively complicated analogy in algebra of like, well, if you had a guy in San Diego who started on a train who was getting over to meet a dude in New York who started on a separate train and they were— once you have like more than 2 data points, most people zone out. Like if you do more than 2 steps of math, most people stop. Conceptually, they don't do that. They wait for the punchline to the joke and they're like, And they meet in Dallas, and that's the answer. And you're like, oh, so point A, point B, Dallas. I think I got it. And you usually don't, and that's okay. So when you guys are talking to investors, when you're talking to your partners, you got to keep in your mind: don't ever do more than two-step math. And if you do, just give them a heads up for crying out loud that you're like, this is going to be a few more steps than you think. So when we're going through budgets and we're looking at how to be able to approach all these numbers. Just take it 2 steps at a time and then start over and then another 2 steps and start over because it can get complicated and I want to make sure we avoid that. So when you're going together and putting together, how much does it cost to run a fund? How do I put together a budget? There is a couple of critical vendors. The first one is just making sure you got the attorney. We've got Chris here that's been at the conference. We've got a couple other options in the, the Fund Launch ecosphere. But again, we're trying to be the Costco in the kayak. Remember that. We're trying to give you some really good ones that'll get the job done and make sure you're, you're all good. So they'll give you some base templates and update a few things with specific terms. They'll set up your entities and help you put the offering together. That's what you pay for when you get your fund documents put together. So that's the first vendor we're going to see. The next vendor you're going to see is your fund administrator. They handle your data room, your e-subscriptions, putting the capital calls and quarterly reporting for it. They can handle a lot of the bookkeeping that you guys don't wanna do. And I can guarantee you, for most of you in the room, they're gonna be able to do more than you understand what they do, which is kind of cool 'cause you can keep coming back to the third-party admins over and over again and they'll give you more value and you don't have to pay for anything else. And who doesn't like getting more value than what they think they pay for? So fund administrator's the second vendor that we're gonna be talking about and looking at. The next one is your banking partner. This one seems kind of more like a sleeper. It's a small line item on the cost, but it makes a big difference in what you're trying to do in your finance world. If they can handle ACH and wire transfers, or if they've got a money market to park a couple of bucks and be able to offset some of that, the dollars while you're waiting to deploy it. Your banking partner makes a huge difference. At your guys' scale, there's no reason why you shouldn't be able to use a national bank. So going to a Chase Bank, a Bank of America, there's— Wells Fargo is a great one. You can use these big banking platforms and they'll give you all the services that you need regardless of your size. So don't ever think that you're too small and you have to use like a local community bank. More often than not, it's actually really hard to use the community banks and the local banks. You can actually just go straight to the top and use the retail portion of those big banks. Don't go into like high net worth clients or commercial, that gets a little messy. Just go to the retail. And a couple of the other vendors that you're gonna see when we're doing the budgeting, you're gonna wanna know where these mile markers are. So your audit partner, that you do once a year. You have to get big enough to make it worthwhile. Your tax partner, you have to use once a year, and that one comes regardless what it is. Fund insurance is another one that we see on a regular basis. Compliance, whether you're using a vendor or a law firm, we'll see that pop up. And if you have transaction attorneys, I bet most of you guys already have that. So there's a lot of things that are going to go into this. You guys still hanging in there with me on it?

Okay.

And we'll get a whole bunch of Q&A afterwards on it. So now is the time we're going to, we're going to go through and actually just Build the budget. You guys ready for this? So I'm going to show you the easy things, which are these are the inputs that you guys need to know. So we're going to go through and do a little bit of modeling on this one. So most of the funds you guys are going to put together, let's say it's $10 million is probably your minimum. And maybe you're going to go to a $25, maybe a $25 million fund. This gives you kind of a rough idea on it. And if you have some questions as we're going on, feel free to raise your hands and we can go through some of the stuff. Most of your funds are going to be about a 5-year fund. And with your average deal size, let's see, who's got a fund we can use for an example right now? Anybody want to be a guinea pig and we can model it out for you? Okay, let's give a round of applause for— now here, why don't you come up, man? So what kind of fund do you got? Real estate fund? He's got a real estate fund. Okay, how big is your fund you're looking to put together? Okay, $15 million. How big could you get your fund?

Reasonably $25 million.

$25 million? Okay, so we kind of got a good bracket out here. 5-year fund?

It's a 5-year lockup, open-ended. With an exit to fund 2 in 5 years.

Okay, so we'll call it a 5-year fund. So average deal size, how much do you— what do you think your average deal size is you're doing? $65,000?

Yep.

So with $10 million, how many deals do you think you can do? There is a lot of deals you guys are going to be doing. So maybe on the large side, you'd be $100,000, about $200,000, somewhere between low $200,000s, mid-$200,000s on the deals, right? Does that sound about right? That is a lot of transaction volume, man. Kudos. Okay. Here's the part that a lot of you guys are looking to figure out. How do I actually figure out what my fund costs and how do you break it out into the numbers? So do you guys have a third-party administrator?

Yeah.

Do you know what they run on an annual basis? Okay, so about $8,000. And there's a couple of different third-party administrators that you guys can use. You can get self-administration, you can get a self-administered, like a tech platform and add an accountant to it, or you can get a full-service administrator. NAP's probably the least expensive full-service administrator we have within the stack. The good pros, they, they can package everything, they can put it together, they kick you all what you need. The downsides, they're a little bit hard on some of the communication sometimes. They outsource their team out in India. So if you need a, if you have a question, usually ping them, wait overnight, they'll ping you back in the morning. So the lowest cost on the tier 3 is about $8K. On the high end, it's, you can get somebody like Carta who in my mind, that's a premium service provider. We're actually going to be using Carta for our fund too. And they're starting out about $20,000. And on a $25 million fund, you might be closer to maybe $30,000. And they'll do all the reporting. They'll do the KYC. They do the interactions with the investors. They onboard all of them. They're really, really hands-on. Can't speak enough good things about Carta and what they're able to do. So we've got Carta. Do you know on an audit, have you guys done an audit? Not yet. An audit on the low side probably runs you about $12,000. And if you're A real estate fund and you do all of the audits, you're probably looking about $35,000, somewhere there. And that one can be delayed out a year. So most people are like, I just set up a fund. Do I need to get an audit? Depends. And what it depends on is, are you guys big enough to spend the money to make it worthwhile? The cool thing is if you got a full-service fund admin, they will actually interface with your auditor. So you don't have to be the audit specialist. They can actually kick over the transactions and manage a lot of that. If they require the audit, Sometimes in the disclosures, if you, if you don't have the audit in your first year, you can do a 14-month audit, but it really does depend state by state on what your regulations are. So most of them, when you're under $25 million, you're, you're not big enough to be in the state qualification and, you know, check with your securities attorney on it. But sometimes in the smaller, it's just reporting to your investors. What'd you put in your docs? Usually we recommend like in your docs, if you put that you're not going to do an audit until you have at least $3 million deployed or 5 assets, and then you do an inception to date audit. That's usually pretty fine with investors because you know just starting out in two months and you buy one asset and you got a million bucks. Does it make sense to spend twelve K on an audit? Your your partners probably aren't going to think that you need something like that. But after fourteen months when you have three to five million and you've got half a dozen assets, yeah, it's totally worth it at that point. Tax side of things, have they given you an estimate on your tax returns?

About thirty grand. We had a fund quote; it was about thirty grand.

Yeah, somewhere in that range. Yeah, that sounds about right. Real estate funds have a lot more tax returns because. You've got SPVs, the holdings entities. So very common for real estate funds to have a lot more transactions that they have to go through on the tax side, especially if you're doing cost segregation studies, 1031 exchanges. Real estate funds can add up really, really quick. Some of the other ones like venture capital, specialty funds, if you're doing commodities, even hedge funds can be a lot lower in there. Sometimes you can get down, you know, if you're in the 8 to 10 range for 50 investors across 2 or 3 states, then you're doing pretty good. And that's a decent price for it. So one of the, the, on the tax return for budgeting, the biggest variables, how many LPs, how many states, and what industry you're in. And that, that's how they price all of those. So if more states, more investors, weirder, like real estate stuff, then your price goes up. Questions on that?

That's a good thing to look out for. Because I know when I got the quote, they didn't ask what states the investors were in. So maybe that wasn't such a good provider?

Could be. So most states usually run like $500 to $750 per state. It's pretty standard. And then they'll, they'll upcharge anywhere from $50 to $100 per investor. So they'll give you a base price and say it's $7K for the federal and $2,500 for the state. And then every additional state's $750. And every additional investor over 30 is another $50 to $100. That's how they price them roughly. Compliance. Do you guys use a compliance vendor? When you're using compliance vendors, there's kind of two routes to go. You can get a good tech stack, and some of the ones that we've got internally, we we've used comply.com, and there's a great standardized contract that we've got for those. They they run about three hundred seventy bucks a month, and they'll help you with annual renewals. They'll help you with blue sky filings. So every time you raise capital, you have to file in that state to say, "Hey, we jumped into your state and raised money from." of your people there. So they'll help with blue sky filings and the annual reviews. It does get bigger if you go to like ACA is a bigger vendor, and they're charging anywhere from $500 to $1,000 a month. So a lot of hedge funds use them, a lot of complicated funds use them, or you can just use a securities attorney that might run $350 to $500 an hour, and you could just use them whenever you need. On the low end, you might have like $370 with Comply times 12. So it might be about $4,000 or $5,000. That's pretty usual. On the high side, I'd say $15K is pretty reasonable while you guys are not RIAs. So if you've got under $150 million, $125 million, you're probably somewhere in that range. And to give you an idea, blue sky filings, it's pretty common that most states will charge $100 to $250 per state where you raise capital. So if you're going to 10 different states, it's very, very common to see anywhere from $2,000 to $3,000 or $4,000 of blue sky filing fees while you're out fundraising. So we've had people go through and they're like, yeah, I raised in, you know, 2 different spots. And then they look at it and their attorney says, yeah, that's $500. It's like, the heck am I paying $500 for raising capital in that? It's pretty normal. I wish it was a little bit different. And then do you guys do any acquisition fees that you charge the fund? What do those usually run?

About 3%.

About 3%. And is that put into the asset or does the fund pay an acquisition fee to you guys? As a manager?

So we own the brokerage and we own the servicing company. So when we buy or transact the real estate, we get a brokerage fee. We charge 1% listing fee to buy and sell. So there's 2% there, and then there's consulting fees for doing the books and stuff. So it adds up to about 3%.

And those usually probably go on the settlement statement, I'm guessing.

Yes.

They're paid out on the— okay.

On the closing statement. Yeah.

So there's 2 ways to handle acquisition fees. You'll see Sometimes these, you'll see 'em on the fund financials. How he's doing it is rolling it into the assets. So that's just part of the asset acquisition. A lot of VC funds or PE funds, or you might get some other specialty funds, will actually expense it to the fund directly. So independent of the individual asset. So it could go from anywhere from, you know, maybe it's 50 basis points all the way up to like a 1%. So somewhere in that range, you can see some of those. So we'll see how, how it trails through. There's a lot of situations where the LPs want to make sure you've got skin in the game for your funds. That's why pretty standard Sequoia kind of set the baseline for this to say every GP that has a good strategy should put between 1% and 3% of the capital that's raised into their fund. That can get really big really fast and starve a lot of emerging managers. We found out. That's why Fund Launch Partners partially exists. That's one of the value theses. But a lot of times in the LPs, rather than having a 2% management fee, And having to do a 1% capital commitment, they outline that there's a 2% management fee, but half of that will be supplemented to be the capital commitment for the fund. When you do the math, it actually works out fairly decent. But it's basically saying instead of taking a full market management fee, we're just going to take a discounted management fee and put that into the fund instead. And it works out. There's actually some tax benefits to be able to do that because you can not pay taxes on the management fee because you put it in as a capital commitment. investment into the fund. You still have to pay taxes on it on the back end, but it can change things around. More often than not, doing that with acquisition fees or management fees, it's something you probably do more on fund 2 or fund 3 when you have a lot more cash, because you really do have to look at it and say, my manager books are healthy enough, I've got enough cash that I don't need any more operating cash in that manager. And I'm pretty sure for most people starting it off, that's not the case. So they need all the management fees they can get on it. But yeah, that does come up. We're going to go through a couple more of these and go pretty quick. Legal and setup. Do you know how much you did in legal and setup? So you're about $32,500.

Yep.

And on the high side, when funds get a little bit bigger, you might be doing side letter agreements you have to review for legal. There could be some other structures that cost another $5,000 or $10,000 in some of the premium vendors that we have for Fund Launch to set things up. So there's, there's a few different things. If you open up an international Any of you guys dealt with international funds? You know how much it costs to get an international fund associated to your fund? It's about $50K. So there's a lot of people that ask, hey, when I'm budgeting and a new investor from the Middle East comes out, or I've got people in Latin America that want to come put money in it, the easy answer for you guys to mentally budget, if somebody says, hey, I want to put $200,000 into a 10-year fund and it's going to come from a foreign bank account, just keep in your mind, it's probably going to cost you anywhere from $25K on the low side Up to about $50K on the high side just to get those international funds in the door and working with you. Yeah, you invest internationally and your investors are domestic. That gets into a crazy thing called blocker entities. So the kicker is US guys or US taxpayers usually don't like to have international tax presence. So there's some different ways to have to kind of navigate that. And they use the term blocker so that any of the international investments get blocked at the US, usually it's with a C corp. And that way the US domestic investors just get a C corp tax return. So they're not having to have German exposure and Middle East exposure and Latin America exposure. They just want like, gimme like the Delaware C corp treatment on that. And then I don't have to do a lot of disclosures and tax returns. It's a good question. Any of you guys deal with Canadian investors? So it's a similar aspect for it. So we've got a couple out there. If they have a US entity and they're investing from the US entity, It doesn't matter if they're a US citizen. So if they've gone through the hassle of doing that, and more often than not, if it's a US corporation, you know, you're good. If it's a US partnership, 50/50, there could be some issues behind it. But if they do have an entity, they probably are aware of some of those things and they can run it through their tax guys. The short story is, as long as they have a corporation in the US, then their tax treatment does the same thing like what we were talking about to block that exposure. If they've got a US bank account and a US entity and they keep the money in the US, They don't repatriate it back to Latin America, then all their tax treatment's taken care of at that US corporation entity. That makes it kind of nice. So just curious, let's say if you had a foreign investor, let's say in somewhere like Israel, right? They don't have a US-based business. They want to invest in your fund. What would it look like if they opened up an entity in the United States and then moved the money there to invest in your fund? That's totally normal. That's kind of what they call a self-blocker, which is a fancy way of saying take care of your own freaking tax problem.

Dude. Yeah.

Not my problem. But what they end up doing is they'll just come out, set up some kind of a C corp. They make sure in your case in Israel, their tax accountant knows how to deal with US taxes for a corporation. And then for you guys, all you'd have to do is issue a K-1. That's the tax reporting for partnerships. You'd issue the K-1 to their corporation and their corporation has a US tax ID number and you're solid. Your liability is done. If they have something that needs to go from the US corporation to Israel, They have to make sure they've got that covered. But I highly recommend for all you guys out there, don't get involved in their tax treatment. Just make sure if they're foreign nationals, they have corporations in the US that they're investing from, and everything else is pretty smooth sailing. Canada has a little bit better issues that you can deal with that's a little bit more favorable, but for the most part, look for a corporation. So legal and other setup, there could be, you know, if you're putting $50,000 to be able to get stuff put together, that can be normal for it. So what I want you guys to look at here, and this is the— we put all the numbers in, we're chunking things together, we're kind of looking at it. There's a metric that you'll see in the marketplace that you might not have caught, which is the load cost. And this is the part I want you guys to take special attention to because a lot of people say, well, aren't small funds really, really expensive? And the load cost is the easy answer to go to. So in an industry, what they do is they look at it and say, what is your expense ratio as compared to your total capital commitments up top? And in a normal fund, you'll see something— and this is not management fees. You notice we didn't put management fees in, but in a lot of normal funds, you'll have somewhere between 50 basis points and 75 basis points. And as an emerging manager, there might be a few other costs that get you up to maybe 100 basis points or 1%, but that's very, very normal. So something I'll do for you guys, and looking at this, you guys can kind of see that we're right in that range. We put together, that's a normal load cost for a fund. Everything's working fairly smooth. So that load cost is kind of a good indicator for you guys of where to keep your budget. And you might have more compliance costs or you might have a little less legal cost or, you know, work something out. But that's a, that's a win if you hit in those ranges. The good thing is, if you look at these, Do you need a third-party admin before you start your fund?

No.

Do you need an audit?

No.

Do you need tax? No. Compliance? No. Legal? Yes. And guess what? If you're already here in the room, you've already covered that one. And a lot of the Black Card clients do use that as a reimbursement from their fund. So if you look at it, you can get the legal docs, your subscription agreements, you can get all of that stuff ready. And third-party administrators are pretty cool. They have this great market thing where they don't charge you until your first closing. So you can get all your document data room, your e-subscription process, all your legal uploaded before you have to drop another dime into the fund. You can already start taking subscriptions. How cool is that? So from what you were talking about, you can make your first capital call, bring in capital to be able to cover these other expenses. So you guys, congratulations. You're, you're already halfway through that and life should be pretty good for you on that. So fund insurance, we've actually got some great vendors we work with. Alliance does a great job working with us. Most of the funds, regardless of how small you start, are about $10K. Fund insurance, there's a couple of things that you guys need to be able to do that. You got to have a policy and procedures manual. You have to have an investment committee and like investment guidance, and you have to have a code of ethics policy. Once you guys have those, it's super easy to be able to get all the rest of the information you need to get out of an insurance policy. A lot of the insurance policies will go retroactive With a disclaimer. So as a manager, they'll kick you over a form and it basically says we have no prior litigation, there's no prior pending acts that's an issue. Depending on where you're at, sometimes you have to like exclude the inception all the way up to when you issued the policy. So they'll issue it to you, but they won't cover those acts before you got the policy. But if there's not much that's going on, you might be okay on it. We usually recommend like once you hit about $3 million of commitments, it's probably worthwhile to pick up an insurance policy, make sure you've got that. As you're rolling things on the early stages, you can bump it over to that. Does that answer your question on that one? Okay. This is a roll-forward model. If anybody asks you, what's the forecast for your fund? Like, how are you managing expenses and costs? And it goes through and takes you year by year. You can go all the way out for 4 years and gives you some of these ranges. And it's literally the numbers that we pulled up on over here, gives you a couple of different items to look at it and say there's placeholders. It automatically rolls the numbers. So if you say, hey, what if the legal for this of just ancillary is only $2,500 and I spend, you know, $15,000 in my deals? This thing will automatically roll it all for you. So again, you guys don't have to be experts in it. We have the templates, we've got the formats, and we'll kick this over to all of you guys so you can use that, take all your information of where you're at, pump it in the model, and it just gives you an easy way to forecast it all the way down to figuring out what your load expense is. So helps you understand it, talking a little bit more about market and gives you an overview of where you're at for your, your cost structure according to that. Okay. See if we can answer a couple of your guys' questions. Has everybody heard Valley of Death analogy before? Did you guys talk about that a little bit before? It's right here on it. Yeah. So this, this J curve that you guys are seeing, there's usually a cash flow crunch and there looks like there's a huge expense ratio doing it. Because if you've got $50,000 to start your fund, which is pretty normal, but you've only got $1 million of commitment, it looks like you've got a 5% load cost. And obviously over time that works itself out. There's a couple of things that are really nice. One of them is management fee catch-up. It's a really big helper for you. Live really, really lean. And while you're getting the management fees, most of the organization docs, if you guys go through it, says that the LPs have to pay a management fee from the first closing all the way to where they're at. Now let that sink in for a minute. If you're charging a 2% management fee on your first close, they just start paying management fee. But what happens when somebody comes in after 12 months? of the fund life. They pay management fees all the way back to day 1. And how much cost do you have associated to that catch-up management fee? Zero, because you've already done all the work for that 12-month period. So the good news is there might be a lot of costs that you guys have going into it. Hopefully a lot of them, you know, the fund costs are covered by capital calls and the investors. But if you've got a pretty big gap investing into your team, your office space, your technology, your acquisition pipeline, The good news is if you do have a catch-up management fee, you put a lot of that investment up front, but you actually have kind of this kicker that's your safety reserve that as you continue to raise more capital, your management fee actually comes back into your pocket and you've got these big kickers that can help fill in the gap. So the biggest thing I can recommend is live lean on your management fees as you, you start up and keep going. And if you're 2 years out into your fundraise process, There could be a good chance that some of your later-stage investors who get— they can already see your portfolio. They already know if you're successful. You might even have some like built-in value add for those, those investments that you've already got when they buy in and you say, oh, you got to pay a 2% management fee. And they look at your numbers and say, well, you guys have already had a 15% gain in your portfolio. Yeah, I'm happy to pay a 2% management fee catch-up because they arbitraged literally like 13% on that. That's a really good day for those investors.

Could fund administration essentially be done in-house by ourselves if we just have like, say, 5 or 7 investors and we're just getting started?

Um, yes, I'd say that that's definitely a possibility. As a, like a guy who's run a ton of third-party admin services and accounting stuff, I would always recommend bang for the buck. If $7K for NAV is the baseline to get something basic that you really have to grind at, and $18K to $20K is what it takes to get a Carta service. To be able to do everything and fulfill your wildest dreams. I'd look at it and go, I don't think any one of you guys wanted to be an accountant, right? Am I still on the same page? I would pay the money to have a good service provider because that's a fund expense. Your investors are going to be happy if they have a great portal, a great experience, great subscription, all the KYC and AML, like you're covered because I'm guaranteeing your best bang for the buck is not being a bookkeeper.

Yeah.

And for the price they have to scale it, And you can fall back on that.

Yeah.

If investors are mad about something, well, no, the numbers are all done by a third party. So don't get mad at me for the numbers. You know, it's a great— if it's everyone, everyone's making money, no one cares. But when people start losing money, hey, what about— and you go, no, we— the numbers are correct. They're right here from— and we also had an audit done too. It's hard to argue with that. Yeah, I would do it for even a small fund. I would still do an admin.

Make sure you can be the best operator and let the accountants do the accounting stuff. There's 4 things that every investor will get once you get up to speed as a fund. You're going to show to your partners a partner's capital statement or a PCAP sometimes they call it. And that partner's capital statement is one of those 4 critical items. And it'll show you how much your contributions are, how much your distributions are, your allocation of net income, and how much you pay to the GP, which all of you guys should be looking at that number all the time. That's, that's your gravy train at the end. So your partner's capital account statement, that's the one that it shows a percentage of the total fund. And then you show the percentage of the fund assets. And that'll give you, you can, that's 3-step math, by the way. But if you take your ratio of your investment to the fund and take your fund assets and apply that percentage to the fund assets. That tells you how much of the fund assets you own versus how much capital you put in. And you divide those 2 and you get your multiple. So there's a couple of numbers and all of those on your partner capital statement. And, uh, like a good third-party administrator will put together that statement and they can literally bring it in. So if you work for the credit union, somebody says, I own a piece of a private equity fund, you can congratulate them, pat them on the back. They're doing great. And then ask them, can, can you show me your partner capital statement so I can see what the value of those assets are worth? And that one page should do exactly what you're talking about. Okay.

Clap it up for Adam Campbell, everybody. Well done, Adam.