Set up your selling group

By the end of this guide you'll have chosen how a fundraise is placed, invited the broker-dealer and RIA firms that will sell it, and set each firm's commission terms, so those firms can start submitting investors on your round.

How a selling group works

A selling group is the set of placement firms that sell a fundraise for you. A firm joins in one of two roles: a managing broker-dealer (MBD), which manages the offering, reviews the submissions of the brokers it supervises and can also sell, or a Broker, which sells only and can be either a broker-dealer (BD) or a registered investment adviser (RIA). A fundraise can have more than one managing broker-dealer.

• Each round has its own selling group. When you start a new fundraise on a fund, its selling group starts empty, and its commission terms, closing schedule and other placement settings start fresh. Invite the firms you want again for that round.
• The fund administrator is the exception. A fund administrator is assigned to the fund as a whole, so it carries across every round.
• Changes stay in their round. Editing one round's placement model, firms or terms doesn't change any other round.

Choose the placement model

The placement model decides whether a fundraise is sold through brokers at all. You can pick it when you create the round and change it later.

1. Open the fund and go to Fund Setup for the fundraise you're configuring.
2. Under General, open Fund Admin and find Placement Model.
3. Choose one of the three options: Direct to investors, selling through brokers via a managing broker-dealer, or selling through brokers directly (with no managing broker-dealer).
4. Review the confirmation, which explains which areas become available or hidden for this round, and confirm.

Invite a firm to your selling group

You manage the selling group from Fund Setup, not from a tab on the fundraise. Until you invite a firm, Selling Group shows No firms — Invite a BD or RIA to begin sourcing packages.

1. In Fund Setup for the fundraise, open Selling Group.
2. Start a new invitation.
3. Enter the firm's name, its CRD and the email address of the person who will administer the firm's access.
4. Choose the firm's role: MBD or Broker. For a Broker, also choose its type: BD or RIA.
5. If the fundraise has a managing broker-dealer, pick which MBD reviews this broker's submissions. On a round sold through brokers directly there is no MBD, and you review the broker's submissions yourself.
6. Send the invitation. The firm appears in the selling group as invited until its admin accepts.

Once the firm's admin accepts the invitation, the firm is active on the round and its team can start submitting investors. The admin can then invite their own colleagues to the firm. If a firm already works with Covercy One on another fund, it keeps a single workspace that lists every fund it works on.

Review your selling group

The Selling Group table lists every firm on the round with its Role (MBD or Broker), its Type (BD or RIA), its status, its activity on the round and the commission terms that apply to it. Each term shows where it comes from: the fund default, a firm override or an investor override. Use the search field to find a firm by name.

Set a firm's commission terms

1. In Selling Group, select the firm's row to open its drawer.
2. Review the firm's commission terms and, where needed, set an override for the firm or for an individual investor placed by that firm. Terms you don't override are inherited from the fund.
3. Save. Before anything is written, Covercy One shows you the open submissions the change reaches.
4. Confirm to apply the change.

Remove a firm

Remove a firm from the round in Selling Group. Once removed, the firm can't submit new investors on that round and no longer sees the fund in its workspace. Its past submissions and commission payments stay on record. You can invite the same firm again later if you need to.

Add a fund administrator

A fund administrator reviews submissions, confirms that investor funds arrived and can execute closings for the fund. You can add one only while the fund has no open opportunities. An opportunity counts as open until it is marked lost, is deleted or has a booked position. While any are open, an invitation is refused with You can't add a Fund Administrator while you have open opportunities. Settle your pipeline first, then invite the fund administrator. Every new opportunity after that includes the fund administrator's review.

Check that it worked

Open Selling Group in Fund Setup for the round. Each firm you invited appears with its role and type, and shows as invited until its admin accepts, then as active. Once a firm is active, its submissions appear in your fundraise's pipeline. If something doesn't look right, contact the Covercy One support team.