Understanding Entities

Entities are the external parties that have relationships with your assets and liabilities.

What is an Entity?

In Caprafi, an entity represents any external party that you interact with in your investment activities. This could be a company you've invested in, a bank that holds your funds, or a fund manager running your investments.

Why Use Entities?

Entities serve several important purposes:

• Relationship Tracking - See all assets and liabilities connected to a single counterparty
• Exposure Analysis - Understand your concentration with specific entities
• Due Diligence - Maintain documentation and notes about each party
• Reporting - Generate reports grouped by entity or entity type

Entity Types Explained

Company

Use for any incorporated business entity, including:

• Portfolio companies you've invested in
• Holding companies and SPVs
• Operating businesses
• Joint ventures

Fund

Use for investment vehicles:

• Private equity funds
• Venture capital funds
• Hedge funds
• Mutual funds and ETFs

Note: Create separate entities for the fund and its management company if you interact with both.

Individual

Use for private persons:

• Private lenders in loan agreements
• Key executives or founders
• Personal guarantors
• Family members in estate planning

Bank

Use for financial institutions:

• Depository banks
• Lending banks
• Custodians
• Investment banks

Linked Workspace

Use to connect multiple Caprafi workspaces:

• Consolidate holdings across workspaces
• View aggregated KPIs
• Ideal for holding company structures

Linking Entities to Assets

Each asset can be linked to multiple entities with different roles:

• Borrower - The party borrowing money (for loans)
• Lender - The party providing funds
• Issuer - The company that issued securities
• Fund Manager - The party managing a fund
• Guarantor - A party guaranteeing obligations

One entity link is marked as Primary - this determines which entity's totals include the asset.

Best Practices

• Create entities before assets - It's easier to link existing entities when creating assets
• Be consistent with naming - Use official legal names to avoid duplicates
• Add descriptions - Include registration numbers and key context
• Use country field - Helps with geographic analysis
• Track status - Mark entities as "Exited" when relationships end
• Upload documents - Attach contracts and agreements to entities