Add an investor on behalf of a broker

By the end of this guide you'll have added an investor to your fundraise in a broker's name, so the investor is attributed to that selling firm and goes through the same review as an investor the broker submitted itself. Use this when a broker sends you an investor's signed paperwork outside Covercy One.

When the on-behalf option appears

• On a fundraise with at least one selling firm that's invited or active, Add Investor first asks how you're adding the investor: Direct (your usual flow) or On behalf of a broker.
• This includes a fundraise whose only selling firm is the managing broker-dealer.
• On a fundraise with no selling firms, or on a round whose Placement Model is direct to investors, there's no choice and the direct flow opens. Firms you assigned before switching a round to direct keep their assignment, but they aren't offered here until you switch the round back to a broker model.

Add the investor

1. Open the fund and go to the fundraise.
2. Select Add Investor, then choose On behalf of a broker.
3. On the Select a firm step, search for the firm by name and select it. The list holds every firm on the round that's invited or active, shows whether each one is a broker-dealer or an RIA, and marks the fund's managing broker-dealer. Removed firms aren't listed.
4. If the firm isn't on the fund yet, invite it from the same step with the selling group's invite form. The new firm is selected and you carry on without leaving the dialog. The firm gets its invitation exactly as if you'd invited it from the selling group.
5. On the investor step, use the Investor field. Choose Create New Investor to start a blank form, or type at least two characters to find one of your contacts and select them. Picking a contact fills in their first name, last name, email and phone, which you can still edit. Continue stays unavailable until you pick one.
6. Complete the form. The Contact section holds the person's details; select Add physical address (optional) if you want to record their address. The Investing entity & commitment section holds the investor type, the legal name, the tax ID and the subscription amount.
7. Under Additional conditions for this investor, check Gross-up eligible or Bonus eligible if the investor qualifies, then select Continue.
8. On the Documents step, check the read-only summary line that names the investing entity, the commitment and the contact. Attach the signed subscription document and any KYC items the checklist asks for.
9. Select Submit opportunity. The confirmation reads Investor opportunity submitted.

About the additional conditions

• Both conditions start unchecked on every submission. Nothing is set for you from the commission terms, so decide for each investor.
• A condition is shown only when it's available to this investor. If neither is available, the block doesn't appear.
• When the rate that applies to this investor differs from the fund's default, the control names that rate and where it comes from, such as the firm's own terms.
• The investor is priced on the selected firm's commission terms, and the fund's setup at the moment you submit is locked onto the opportunity. Later changes to the fund's setup don't change it.

What happens after you submit

• The investor lands as Signed in your pipeline, attributed to the firm you picked, because the paperwork arrives already signed. No position is created yet: that happens later, once the review is complete.
• Your upload isn't your approval. The selling firm's review is recorded as approved, because the package is filed in its name. Every other reviewer, including you, starts at Pending, so the opportunity carries the same approvals as one the broker submitted itself. When you're ready, approve your own review from the opportunity drawer, as you would for any broker-placed investor. You can approve it even though you uploaded it.
• The review follows the firm's placement chain. If the firm has a managing broker-dealer, the opportunity waits on it first, then on you, then on the fund administrator when there is one.
• The firm sees the investor in its portal. A firm that hasn't accepted its invitation yet finds the investor already there once it accepts.

Check that it worked

Back on the fundraise page, find the investor in the Opportunities table. The Status column names who the opportunity is waiting on, for example Pending MBD or Pending GP. Open the opportunity's drawer to see the Review card with the firm's row approved and the Fees & Conditions card. To review and approve it, see Review and approve broker-placed investors. If something doesn't look right, contact the Covercy One support team.