You can use transactions with private equity for pending trades, booking trades, and cancelling and rebooking trades.
Convert Positions for Private Equity
For information about pros and cons to different approaches to converting private equity positions, see Private Equity (PE) Best Practices V17 R2.36+ .
Use Pending Trades with Private Equity
WRITERS NOTE: planned for v17.2.37 with https://eagleinvsys.atlassian.net/browse/SDP-61235
You can use pending trades for private equity securities based on a processing security type of Capital based Fund Investment (EQCBFI). For general information about pending trades, see Manage Pending Trades.
Book Trades for Private Equity
You can use the Book Trade tool to perform the following tasks for private equity securities.
Make Initial Commitment. You can specify the total commitment amount using the Initial Funding panel.
Adjust Commitment. After you book the initial position, you can change the total commitment using the Additional Funding/Capital Call panel.
Process Capital Call. You can process a capital call (funding of the commitment), which may include both capital investments and fees that impact the funded and unfunded commitments. A capital call increases the funded commitment and decreases the unfunded commitment. You use the Additional Funding/Capital Call panel for capital calls.
Process Cash Distribution. You can process a cash distribution from a private equity fund and break out the distribution between income, expense, and cost using the Capitalization/Cash Entry/Final Close panel. There are two types of cash distributions:
Recallable. Cash is paid out to limited partners (LPs), but can be either fully or partially recalled by the general partner (GP) at a later date. This decreases the funded commitment and increases the unfunded commitment.
Non-Recallable. Cash is paid out to LPs permanently. This does not affect the funded commitment or unfunded commitment.
Process Capitalization. You can process capitalization to recognize income and/or expenses using the Capitalization/Cash Entry/Final Close panel. This also adjusts the cost of the private equity position. These transactions hit LP Income and LP Expense, but they do not generate cash or affect the funded and unfunded commitments.
Close Out Position. You can close out a position in a private equity fund using the Capitalization/Cash Entry/Final Close panel. You can break out any cash associated with the close between income, expense, and cost.