Playbook: Investor Wants to Increase

An investor has asked to increase their investment amount. This playbook walks you through verifying eligibility, approving the increase, and handling the follow-up payment.

Pre-Check Flowchart

Step-by-Step Guide

Step 1: Verify the SPV is Open

1. Find the investment in the admin panel
2. Check the SPV status -- it must be Pending (open)
3. If the SPV is Closed or Cancelled, the increase is not possible. Inform the investor.

Step 2: Check the Numbers

• New total amount: Original amount + increase = new total
• Minimum investment: Check that the new total is at or above the SPV's minimum
• Target raise: Check if the SPV's target raise has room for the additional amount

Step 3: Approve the Increase

1. Use the investment increase action in the admin panel
2. Enter the new (total) investment amount
3. Confirm the increase

Step 4: Understand What Happens Next

The system's behavior depends on whether the original investment was already funded:

Step 5: Monitor the Supplemental Payment (If Applicable)

If the investment was already funded:

1. A supplemental payment order is created automatically
2. For ACH: the system automatically pulls the additional amount from the investor's bank
3. For wire: the investor receives new wire instructions for the supplemental amount
4. Monitor the supplemental payment just like any other payment
5. Once completed, the investment total will match the new committed amount

Communication with the Investor

• Confirm the increase: Let the investor know their increase has been approved and the new total amount
• Set payment expectations: If a supplemental payment will be processed, explain that they'll see an additional charge or need to send an additional wire
• Provide the new total: Including the updated fee (which is recalculated automatically)

What NOT to Do

• Don't increase if the SPV is closed -- there is no exception to this rule
• Don't create a second investment -- increases should be processed as increases to the existing investment, not as new investments
• Don't forget to check the target raise -- going significantly over the target may cause issues with the deal structure

Edge Cases

• Multiple increases: An investor can request multiple increases as long as the SPV remains open. Each increase follows the same process.
• Increase + wire: If the investor is paying by wire and the original wire hasn't arrived yet, the expected payment may need to be updated to reflect the new total.
• Increase after funding close: If the original investment was already settled in a funding close, the supplemental payment will be included in the next close.