NAV (Net Asset Value)
The value of a fund's assets less its liabilities, usually expressed per share or per unit. It is the basis on which investors subscribe and redeem, and producing it accurately and on time is a core regulatory obligation.
GAV (Gross Asset Value)
The total value of a fund's assets before deducting liabilities such as fees, debt and expenses. NAV is derived from GAV.
Capital call (drawdown)
A request from a fund to its investors to transfer committed capital. Capital is drawn down over the fund's life to make investments and pay expenses, rather than all at once.
Distribution (waterfall)
The return of capital and profits to investors, allocated according to the fund's distribution waterfall, which sets the order and split between investors and the manager, including any carried interest.
Carried interest
The share of a fund's profits paid to the manager (general partner), typically after investors have received their capital back plus a preferred return.
Hurdle rate (preferred return)
The minimum return investors must receive before the manager earns carried interest.
Management fee
A recurring fee charged by the manager, usually a percentage of commitments or net asset value, to cover the cost of running the fund.
SPV (Special Purpose Vehicle)
A separate legal entity created to hold a specific investment or group of investments, used to ring-fence risk and structure ownership.
Look-through
Reporting that sees through fund and holding structures to the underlying portfolio companies or assets, so investors understand their true exposure.
Learn more →AIFMD
The EU Alternative Investment Fund Managers Directive, which regulates managers of alternative funds, covering authorisation, valuation, depositary oversight and reporting. AIFMD II tightens delegation and reporting rules.
AIFM / ManCo
The Alternative Investment Fund Manager or Management Company responsible for managing a fund and meeting its regulatory obligations, including oversight of delegated functions such as fund administration.
UCITS
A European framework for retail-friendly, open-ended investment funds, with strict rules on eligible assets, liquidity and investor protection.
ELTIF
European Long-Term Investment Fund. ELTIF 2.0 widened retail access to private markets through evergreen and semi-liquid structures, increasing NAV frequency and oversight demands.
Depositary
An independent entity that safekeeps a fund's assets and provides oversight, including monitoring cash flows and verifying NAV and unit pricing.
NAV oversight
The independent checking of an administrator's NAV against an expected value, flagging movements beyond a defined tolerance, with a sign-off workflow and a full audit trail.
Learn more →0.5bp NAV movement check
An industry control that flags NAV movements beyond a small tolerance (around half a basis point) between periods, for investigation and documentation.
Swing pricing
An anti-dilution tool that adjusts a fund's NAV to pass the trading costs of large inflows or outflows to the investors causing them, protecting remaining investors.
Capital account statement (CAS)
A statement issued by a fund to each investor showing their commitment, contributions, distributions and current value over a period.
IRR (Internal Rate of Return)
The annualised, money-weighted return that accounts for the timing and size of cash flows; a core private markets performance measure.
TVPI, DPI, RVPI, MOIC
Standard private markets multiples. TVPI is total value to paid-in; DPI is distributions to paid-in (realised); RVPI is residual value to paid-in (unrealised); MOIC is multiple on invested capital.
Shadow NAV (contingent NAV)
An independently calculated NAV produced in parallel to the administrator's, used for verification or as a backup. daappa Core can produce an independent NAV; Studio+ NAV Oversight validates the administrator's NAV rather than producing a backup.
Partnership vs corporate fund
Partnership funds (such as limited partnerships) allocate via investor capital accounts; corporate funds (such as SICAVs and many retail vehicles) strike a NAV per share. daappa Core supports both.
CSSF Circular 24/856
The Luxembourg framework, live since January 2025, for NAV calculation errors, investment breaches and related errors, with materiality thresholds, notification and investor compensation.
Learn more →Retailisation
The trend of opening private markets to individual investors through structures such as ELTIFs and evergreen funds, which raises operational and NAV-frequency demands.