Process a Capital Call for Private Equity

Owned by Nancy Cohn (Deactivated)
Last updated: Oct 02, 2024 by Kinga Huszno
2 min read

In the Commitment Adjustment/Capital Call panel, you can process a capital call payment (reflects funding of the commitment) for a private equity fund. Call payments can include both capital investments and fees that impact the funded and unfunded commitments. You can also include expenses in a capital call transaction. A Call transaction (LPCALL event) increases the funded commitment and decreases the unfunded commitment. That is, it increases the capital invested and reduces the cash balance.

This LPCALL event is part of the Capital Based Fund Investment workflow used when you set up a private equity security with a processing security type of Capital Based Fund Investment (EQCBFI).

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To book a capital call for private equity using the Book Trade tool:

  1. In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade. 
    You see the Book Trade workspace.

  2. Complete the options in the Search Details pane and click Search.
    You see the search results based on the criteria you selected.

  3. Select the row with the private equity security with holdings you want to update.

  4. On the Book Trade tab, in the Actions group, click Action Rules, point to Other, and then click Commitment Adjustment/Capital Call.
    You see the Commitment Adjustment/Capital Call panel.

  5. 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.

  6. Under Call/Commitment Information, set Transaction Name to Call.
    You see the fields that apply to a Call transaction.

  7. In the Cash Local Amount field, enter the capital call payment amount.

  8. Enter other Call Information values as needed.
    You can specify the settlement currency, an expense and related account number, a recallable capital amount, and the exchange rate. If the settlement currency differs from the asset currency, you can specify a settlement net amount. .

  9. Under Other Information, in the Transaction Notes list, select the reason for transaction you are adding.

  10. Complete the remaining options on the Commitment Adjustment/Capital Call panel as needed.

  11. Click Submit to process the transaction.