Process Capitalization for Private Equity

In the Capitalization/Cash Entry/Final Close panel, you can process a capitalization for a private equity fund to recognize income and/or expenses. This also adjusts the cost of the private equity position. These transactions affect LP Income and LP Expense, but they do not generate cash or affect the funded and unfunded commitments. This LPCAP event is part of the Capital Based Fund Investment workflow when you set up a private equity security with a processing security type of Capital Based Fund Investment (EQCBFI).

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Process Capitalization

You can process capitalization for a private equity fund.

To book capitalization for private equity using the Book Trade tool:

In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.
Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.
Select the row with the private equity security with holdings you want to update.
On the Book Trade tab, in the Actions group, click Action Rules, point to Other, and then click Capitalization/Cash Entry/Final Close.
You see the Capitalization/Cash Entry/Final Close panel.
In the Entity Information section and the Issue Information section, identify the entity and security for the private equity position that you want to update.
Under Capitalization/Cash/Close Information, set Transaction Name to Capitalization.
Complete the remaining options on the Capitalization/Cash Entry/Final Close panel.
Click Submit to process the capitalization.