LedgerNote for Pooled Fund Investor Accounting

When your investors deposit capital into a pooled fund and earn interest like a savings account

You're not syndicating deals. You're not connecting specific investors with specific properties. You're running a pooled fund where investors deposit capital, earn interest, and can withdraw with notice—essentially operating like a private savings account or CD program.

This is exactly what LedgerNote is built for.

The Pooled Fund Model

How it works:

Investor Side (Liability Side):

  • Investors deposit capital into your fund (minimum $10k-$100k typically)
  • Capital is pooled together (not earmarked for specific deals)
  • Investors earn fixed or tiered interest rates (6-10% annually)
  • Interest credited monthly or quarterly to their account
  • Investors can add more capital anytime
  • Investors can request withdrawals (typically 30-90 day notice)
  • Operates like a savings account or CD, NOT deal-specific investing

Lending Side (Asset Side):

  • You deploy the pooled capital into loans
  • Mix of loan types: consumer, commercial, real estate, business, equipment
  • Interest rates to borrowers: 8-18% (higher than what you pay investors)
  • Spread between borrower rates and investor rates = your profit
  • You manage which loans to fund, investors don't pick deals

Key characteristics:

  • Investor returns are NOT tied to specific loan performance
  • Investors don't care which loans you funded
  • They just want their promised interest rate paid reliably
  • This is fundamentally different from syndication

Why Pooled Funds Need Different Software Than Syndicators

Syndication Model (NOT LedgerNote's focus):

  • Investor #1 funds Property A ($100k)
  • Investor #2 funds Property B ($150k)
  • Investor #3 co-invests with Investor #1 on Property A ($50k)
  • Returns tied to specific property performance
  • Complex ownership structures per deal
  • Software needed: Deal syndication platforms

Pooled Fund Model (LedgerNote's focus):

  • Investor #1 deposits $100k into the fund
  • Investor #2 deposits $150k into the fund
  • Investor #3 deposits $50k into the fund
  • Total pooled capital: $300k
  • You deploy it across multiple loans however you see fit
  • All investors earn the same rate (or tiered rates based on balance size)
  • Software needed: Investor account tracking, interest calculation, statement generation

LedgerNote is purpose-built for the pooled fund model.

Common Pooled Fund Structures

Structure 1: Consumer Lending Fund

  • Loan types: Personal loans, auto loans, debt consolidation
  • Borrower rates: 12-18%
  • Investor rates: 7-9%
  • Spread: 3-11% (covers losses, operations, profit)
  • Example: Texas-based consumer lender, $8M in investor capital, 35 investors

Structure 2: Commercial Real Estate Bridge Fund

  • Loan types: Fix-and-flip, ground-up construction, bridge loans
  • Borrower rates: 10-14%
  • Investor rates: 8-10%
  • Spread: 2-6%
  • Example: Arizona CRE fund, $18M in investor capital, 52 investors

Structure 3: Small Business Lending Fund

  • Loan types: Working capital, equipment, receivables financing
  • Borrower rates: 9-15%
  • Investor rates: 6-8%
  • Spread: 3-9%
  • Example: Florida small biz lender, $12M in investor capital, 28 investors

Structure 4: Mixed Portfolio Fund

  • Loan types: 50% consumer, 30% commercial real estate, 20% small business
  • Borrower rates: 10-16% blended
  • Investor rates: 7-9%
  • Spread: 3-9%
  • Example: Tennessee diversified fund, $25M in investor capital, 65 investors

All of these work perfectly with LedgerNote.

The Investor Operations Challenge

Your Lending Operations (What You're Good At):

  • Underwriting loans
  • Managing loan servicing
  • Collecting payments
  • Handling defaults
  • Growing the portfolio

Your Investor Operations (The Monthly Headache):

  • Calculating interest for 30-50+ individual investors
  • Tracking mid-month deposits and withdrawals
  • Handling different interest rate tiers
  • Generating monthly statements
  • Answering "What's my balance?" calls
  • Month-end close taking 6-12 hours in Excel
  • Fear of calculation errors causing investor disputes

LedgerNote solves the investor operations headache so you can focus on lending.

How LedgerNote Works for Pooled Funds

Account Structure

Each investor gets an account with:

  • Opening balance
  • Interest rate (default or custom override)
  • Transaction history (deposits, withdrawals, interest postings)
  • Current balance (automatically calculated)

Example:

Investor: John Smith
Account Type: Standard
Current Balance: $127,543.18
Interest Rate: 8.00% annual
Account Opened: January 2023

Recent Transactions:
- 12/01/2024: Interest Posted: +$847.62
- 11/15/2024: Deposit: +$25,000.00
- 11/01/2024: Interest Posted: +$682.85
- 10/01/2024: Interest Posted: +$682.85

Interest Calculation

LedgerNote uses Average Daily Balance (ADB) method:

Why ADB matters:

  • Industry standard for transparent interest calculation
  • Handles partial month deposits/withdrawals correctly
  • Investor deposits $50k on the 15th? They earn interest from the 15th forward, not full month
  • Investor withdraws $30k on the 20th? Interest stops on the 20th

Calculation method:

  • Actual/365 day count (not 30/360)
  • Single final rounding (HALF_UP)
  • Pro-rated for exact days capital was in account

Example:

Investor has $100k in account all month
Interest rate: 8% annual
Days in month: 30
Daily rate: 8% / 365 = 0.0219178%
Interest earned: $100,000 × 0.0219178% × 30 days = $657.53

Partial month example:

Opening balance: $100k
Deposit $50k on day 15
Days 1-14: $100k × 14 days = $100k × 0.0219178% × 14 = $306.85
Days 15-30: $150k × 16 days = $150k × 0.0219178% × 16 = $526.03
Total interest: $306.85 + $526.03 = $832.88

You never have to do this math manually. LedgerNote does it automatically.

Month-End Close Workflow

Current state (Excel):

  1. Open master spreadsheet (hope formulas aren't broken)
  2. Check for mid-month deposits/withdrawals
  3. Manually calculate interest for each investor
  4. Update running balances
  5. Copy/paste into statement templates
  6. Generate PDFs (if you even do this)
  7. Email statements to investors
  8. Total time: 6-12 hours depending on investor count

LedgerNote workflow:

  1. Review transactions for the month (2 minutes)
  2. Click "Close Month"
  3. LedgerNote calculates interest for all accounts automatically
  4. Interest posted to each investor account
  5. Month locks (prevents historical edits)
  6. Click "Generate Statements"
  7. Professional PDF statements for all investors (one click)
  8. Download and email, or print and mail
  9. Total time: 30-45 minutes

Time savings: 5-11 hours per month = 60-132 hours per year

Handling Common Scenarios

Scenario 1: Mid-Month Deposit

  • Investor calls: "I want to add $75k today (the 18th)"
  • You: "Great, what's your current balance?" (look it up in LedgerNote: 10 seconds)
  • LedgerNote: Calculates interest earned through today, shows projected balance
  • You record the deposit effective the 18th
  • Month-end: LedgerNote automatically pro-rates interest from the 18th forward

Scenario 2: Mid-Month Withdrawal Request

  • Investor calls: "I need to withdraw $50k, 30-day notice starting today"
  • You: "Your current balance is $142,680. I'll process the withdrawal for [date 30 days out]"
  • You record withdrawal request in LedgerNote
  • On withdrawal date: LedgerNote calculates final interest through withdrawal date
  • Investor gets exact final balance including pro-rated interest

Scenario 3: Rate Change

  • Fed raises rates, you want to increase investor returns from 7% to 8%
  • You update default rate in LedgerNote effective next month
  • LedgerNote tracks rate history (7% before June 1, 8% after)
  • Month-end: Each investor's interest calculated at correct rate for correct time period
  • No manual formula adjustments needed

Scenario 4: Tiered Rates

  • Balances under $100k earn 7%
  • Balances $100k-$500k earn 8%
  • Balances over $500k earn 9%
  • You set custom rates per investor account type
  • When investor crosses threshold, you update their rate
  • Rate history tracked automatically

Scenario 5: Investor Balance Inquiry

  • Investor calls: "What's my current balance?"
  • Old way: "Let me check Excel and calculate... I'll call you back" (15+ minutes)
  • LedgerNote way: Search investor name → balance displayed instantly (10 seconds)
  • You sound professional, investor is happy

Professional Statements

What investors receive (monthly or quarterly):

[Your Fund Logo]

Statement Period: November 1 - November 30, 2024

Investor: Sarah Martinez
Account Number: INV-00042
Interest Rate: 8.00% Annual

Opening Balance (11/01/2024):           $125,000.00

Transactions:
  11/15/2024  Deposit                   +$25,000.00
  11/30/2024  Interest Posted           +$1,013.70

Closing Balance (11/30/2024):           $151,013.70

Year-to-Date Interest Earned:           $9,847.35

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Questions? Contact us at investors@yourfund.com

Impact:

  • Investors see professional documentation (not Excel screenshots)
  • Clear breakdown of interest calculation
  • YTD totals for their tax records
  • Builds confidence and reduces questions
  • Easy to file and reference

Example Success Story: Pinnacle Private Credit

Fund Profile:

  • $12M in pooled investor capital
  • 42 individual investors
  • Mix of consumer loans (60%) and small business loans (40%)
  • Pays investors 8% annually, credited monthly
  • San Antonio, Texas

Operator: Sarah Martinez (Managing Partner)

Before LedgerNote (Years 1-3):

  • Managed investor accounts in Excel
  • 12 different tabs, complex formulas
  • Month-end took 8+ hours every month
  • Formulas broke regularly (wrong cell references, copy/paste errors)
  • Found 6-month-old error that overpaid an investor by $762 total
  • Had to claw back overpayment → embarrassing conversation
  • Investor calls about balances took 15+ minutes each (4-5 calls/month)
  • Generated statements manually in Word (time-consuming, inconsistent formatting)
  • Constant anxiety about accuracy
  • Considered hiring someone just for investor accounting

After LedgerNote (Year 4+):

  • All 42 investors in LedgerNote
  • Month-end takes 30-45 minutes
  • Zero calculation errors (industry-standard methodology)
  • Professional PDF statements generated automatically
  • Investor balance inquiries answered in 10 seconds
  • Confidence in accuracy, sleeps better
  • Investors comment on professional statements
  • Saved 8 hours/month = 96 hours/year
  • At $150/hour opportunity cost = $14,400/year saved
  • LedgerNote cost: $1,788/year (Pro plan)
  • Net savings: $12,612/year

Integration with Your Existing Systems

Accounting Software (QuickBooks, Xero, etc.)

LedgerNote handles: Investor account details Your accounting software handles: Business income/expenses

Monthly reconciliation:

  • LedgerNote: Total interest paid to all investors = $12,450
  • Export from LedgerNote
  • Journal entry in QuickBooks: Debit "Interest Expense - Investors" / Credit "Investor Deposits Payable"

Clean separation: Investor operations (LedgerNote) vs. business accounting (QB)

Loan Servicing Software

  • Some funds use loan servicing platforms for borrower side
  • LedgerNote is investor-side only
  • No integration needed—separate systems for separate operations

Banking

  • Investor deposits go to your bank account
  • You record them in LedgerNote with effective date
  • Monthly interest paid from your bank account
  • LedgerNote tracks who gets what, bank executes the payments

Pricing & Plans

Starter Plan (Free Forever):

  • Up to 10 investor accounts
  • All core features (interest calculation, statements, reports)
  • Perfect for: Testing LedgerNote, very small funds

Pro Plan ($149/month):

  • Up to 250 investor accounts
  • All core features
  • Perfect for: Most small pooled funds (20-40 investors)

Portfolio Plan ($249/month):

  • Unlimited investor accounts
  • Multi-user access
  • Perfect for: Growing funds, operations team

ROI Calculation:

Assumptions:

  • 35 investors
  • Currently spending 8 hours/month on investor accounting
  • Your time worth $100/hour (conservative for fund manager)

Current cost: 8 hours × $100/hour = $800/month = $9,600/year

With LedgerNote:

  • Subscription: $149/month = $1,788/year
  • Time spent: 45 minutes/month = $75/month = $900/year
  • Total cost: $2,688/year

Savings: $9,600 - $2,688 = $6,912/year

Even if your time is worth only $50/hour, you still save $2,000+/year.

Getting Started

Week 1: Setup (1-2 hours)

  • Sign up for free trial (no credit card required)
  • Create investor accounts (name, opening balance, interest rate)
  • Review account list, add any notes for special arrangements

Week 2-3: Parallel Run

  • Run your normal month-end process in Excel
  • Run the same month in LedgerNote
  • Compare results (should match exactly)
  • Troubleshoot any differences
  • Practice generating statements

Week 4: Go Live

  • Announce to investors (optional): "We're upgrading our investor accounting system for better service"
  • Close next month exclusively in LedgerNote
  • Send professional statements from LedgerNote
  • Keep Excel backup for one quarter (you won't need it)

Month 2+: Full Adoption

  • LedgerNote is your primary system
  • Excel archived for historical reference
  • Enjoy your newfound free time on month-end weekends

Total implementation time: 3-4 hours (mostly data entry of current balances)

Common Questions

"What if I have investors with different rate tiers?"

LedgerNote supports custom interest rates per account type. You can have:

  • Investor A: 7% (under $100k balance)
  • Investor B: 8% ($100k-$500k balance)
  • Investor C: 9% (over $500k balance)

Just set the custom rate on each account type. LedgerNote handles the rest.

"Can I handle quarterly interest payments instead of monthly?"

No. LedgerNote currently supports monthly only. Quarterly is on the roadmap.

"What about investors who want to reinvest their interest vs. withdraw it?"

Reinvest: Interest posts to their account balance (automatic in LedgerNote) Withdraw: You note the interest amount, reduce their balance, pay them externally

Most investors reinvest (compound interest). LedgerNote defaults to this.

"Do I need to migrate all my historical data from Excel?"

No. Most customers:

  1. Enter current balances as of today
  2. Start tracking new transactions going forward
  3. Keep Excel for historical reference

Historical data stays in Excel. LedgerNote is your clean system going forward.

"Can investors log in and see their own accounts?"

Not currently. LedgerNote is manager-side only. You generate statements and send them to investors.

Investor portal is on the roadmap for future development.

"What if an investor disputes their balance?"

Pull up their account in LedgerNote:

  • Full transaction history
  • Interest calculation detail
  • Timestamped records

You can show them exactly how their balance was calculated. Disputes resolve in minutes, not days.

"How do I handle investors who joined mid-month?"

Record their opening deposit with the exact date they joined. LedgerNote pro-rates their first month's interest from that date forward.

Example: Investor deposits $100k on the 15th → earns interest from the 15th through month-end (15 days worth).

Try LedgerNote Free

Stop fighting Excel. Start running your fund professionally.

Free 14-day trial of Pro plan:

  • No credit card required
  • Full access to all features
  • Import your investor list and test month-end
  • See how much time you save

Or start with Starter plan (free forever) for up to 10 investors.

Questions About Your Fund?

Not sure if LedgerNote fits your specific pooled fund structure?

Email hello@ledgernote.app with:

  • Your fund type (consumer, commercial, mixed, etc.)
  • Number of investors
  • Current pain points with investor accounting

I'll give you honest feedback about whether LedgerNote is right for you—even if the answer is "your current system is fine."