Process Initial Funding for Private Equity

Book an Initial Funding Transaction

You can book an initial funding transaction for private equity.

To book an Initial Funding transaction 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 you want to fund.
On the Book Trade tab, in the Actions group, click Action Rules, point to Open, and then click Initial Funding.
You see the Initial Funding panel.
Under Entity Information and Issue Information, select the entity and security for the private equity.
Under Initial Fund Information, enter the commitment amount.
Enter other initial funding information values for the initial funding as needed.
You can specify cost, settlement currency, recallable capital, and the exchange rate. If the settlement currency differs from the asset currency, you can specify a settlement net value.
Complete the remaining options on the Initial Funding panel.
Click Submit to process the initial funding.

The Initial Funding event does not affect the current shares of the security and does not affect the cash in the portfolio. The system stores the Commitment Amount value in the holding’s Original Face field.

Initial Funding Panel Options

The following are the key options in the Initial Funding panel. Note options may vary according to your selections.

Option	Tag	Description
Entity Information
Entity ID	1163	Specifies the unique identifier of the entity.
Entity Name	1164	Specifies the name of the entity.
Base Currency	86	Displays the base currency of the entity.
Issue Information
Effective Date	35	Specifies the effective date of the trade. The trade date cannot be greater than the post date, accounting date, or settlement date.
Accounting Date	36	Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.
Monthly Accounting Date	4733	Displays the month end accounting date.
Settlement Date	37	Specifies the date the trade is settled.
Event Type	55	Displays the business intent of the transaction. For example, LPOPEN.
Long/Short Indicator	15	Displays an L (long) or S (short) to indicate whether the position is long or short.
Cross Reference Type	1234	Specifies the cross reference type associated with the security.
Issue Name	961	Specifies the name of the security.
Ticker	13	Specifies the trade ticker of the security.
Cross Reference ID	1233	Specifies the cross reference identifier associated with the security.
Instrument Type	11	Displays the instrument type. For example, EQ.
Security Type	82	Displays the security type of the asset.
Issue Currency	85	Displays the local currency of the security.
Initial Funding Information
Transaction Name	1728	Displays the name of the transaction. The default value is INITIAL.
Shares	40	Displays the traded quantity of the security. The value is 1.00.
Commitment Amount	41	Specifies the entire local amount of the commitment. You can fund the commitment with zero cash or or any positive amount.
Cost Local Net	50	Specifies the net amount of the trade. You can set this value to 0.00 unless cash is involved with the initial commitment. This is most common with positions acquired in the secondary market. This amount generates a cash disbursement, increases the Funded Capital (tag 18386) value, and decreases the Unfunded Commitment (tag 18388) value.
Settlement Currency	63	Specifies the currency in which the trade is settled. The issue currency appears by default but you can select any valid currency.
Settlement Net Amount	64	Displays the actual settled amount of the trade. The value must be greater than zero. If you enter a Settlement Currency value that differs from the Asset Currency value, the field unlocks and you can specify an amount.
Recallable Capital Local	18390	Specifies the local recallable amount of the cash distribution associated with the initial funding. Leave this value as zero for non-recallable cash distributions. This amount decreases the Funded Capital (tag 18386) and increases the Unfunded Commitment (tag 18388) values.
Local to Base FX Rate	87	Displays the foreign exchange rate used to calculate the net base amount. The value must be greater than zero.
Cost Base Net	478	Displays the base amount of the trade. This amount is calculated based on the following formula: Local Net Amount / Local to Base FX Rate. The value must be greater than zero.
Recallable Capital Base	18391	Displays the base recallable amount of the cash distribution associated with the initial funding. This amount decreases the Funded Capital (tag 18386) and increases the Unfunded Commitment (tag 18388) values.
Other Information
Auto Settle Trade Indicator	58	Indicates whether the system settles the trade automatically. If the entity's Auto Settle Indicator field is set to Yes, as specified on the Create/Edit Entity or Create Master Fund panels, the system creates a settlement when the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future. Eagle recommends that you set the Auto Settle Indicator field to No for the entity and trade panels. Options include: Yes. The system automatically settles the trade. The system retrieves the settle date FX rate if the local currency does not equal base and generates a trade to settle date gain/loss. No. Default. The system does not automatically settle the trade. You must schedule the settlement for these transactions using the Run Contract Cash global panel. Or, manually settle the transactions using the Run Multiple Settlements panel. If you use cash segregation based on actual cash settlements, you can schedule settlements using the Run Cash Auto Match panel and create settlements manually using Cash Matching.
Settle Instructions 1	1897	Allows you to add settlement notes.
Settle Instructions 2	1898	Allows you to add settlement notes.
Settle Instructions 3	1899	Allows you to add settlement notes.
Settle Instructions 4	1900	Allows you to add settlement notes.
Settle Location	43	Specifies the location in which the trade is settled.
Transaction Notes	56	Displays user defined information about the trade. For example, Initial Commitment.
Original Trade Ticket Number	761	Contains the trade ticket identification number. The system uses it during processing. For example, IDLOT close or cancel events use this number to locate an open lot.
Pending Trade Flag	3695	Specifies whether the trade is eligible for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign this value to incoming transactions that meet pending trade rule detail criteria. Or an incoming transaction can include this value. This field is hidden. Options include Y and N.
Pending Trade Status	3720	Specifies the trade's transaction status for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign a value of Pending to incoming transactions that meet pending trade rule detail criteria. Or an incoming transaction can include a value of Pending or a custom pending transaction status value defined in the PEND_TRD_STATUS code category. The default status is Pending if no status is provided. This field is hidden.