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You can use transactions with private equity for pending trades, booking trades, and cancelling and rebooking trades.

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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-61235You can use pending trades for private equity securities based on a processing security type of Capital based Fund Investment (EQCBFI). If you track pending trade activity, be aware that you can set up pending trade rules that determine how the system handles automated and manual trade cancellations within the pending trades workflow. For general information about pending trades, see Manage Pending Trades.

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You can use the Book Trade tool to perform the following tasks for private equity securities.

Panel Name

Event

Private Equity Transaction Name

Initial Funding

Panel Name

LPOPEN

Initial Commitment. You can specify the total commitment amount for a private equity fund.

Initial Commitment

Adjustment/Capital Call

LPCOMMIT

Additional

Commitment Adjustment. After you book the initial position, you can change the total commitment

with an additional commitmentCash

by increasing or reducing it.

Commitment Adjustment/Capital Call

LPCALL

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.

Capitalization/Cash Entry/Final Close

LPCAP

Commitment Adjustment/Capital Call
(single transaction)

Multiple Cash/Calls
(multiple transactions)

LPCASH

Cash Distribution. You can process a cash distribution from a private equity fund and can break out the distribution between income, expense, and cost. 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.

Cash Distribution/Capitalization/

Cash Entry/Final CloseLPCASH

Final Close
(single transaction)

Multiple Cash/Calls
(multiple transactions)

LPCAP

Capitalization. You can process capitalization to recognize income and/or expenses. 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.

Cash Distribution/Capitalization/

Cash Entry/

Final Close

LPCLOSE

Final Close. You can close out a position in a private equity fund. You can break out any cash associated with the close between income, expense, and cost.

Cash Distribution/Capitalization/Final Close

Cancel Private Equity Transactions

You can use the Cancel Capital or Share based Fund Investments panel to cancel a single trade for a private equity fund and you can use the Batch Cancel Trade panel to cancel multiple trades for a private equity fund. For more information, see .WRITERS NOTE: insert XREF Cancel Capital or Share Based Fund Investments.