Calculate Residual Value to Paid-In-Capital

Inputs

There are four inputs for the calculation of the Total Value to Paid-In Capital ratio.

Residual Value

The remaining market value for private equity investments on the end effective date of the performance calculation report.

Sum of Contribution Cash Flows (Paid-In Capital)

Total of all paid-in cash flows for the LP investment throughout the date range of the Money Multiple field. 

Begin Date

The first date of the time range and the first date cash flows are eligible to be included in the calculation.

End Date

The last date of the time range and the last date cash flows are eligible to be included in the calculation. 

Example

LPCALL is the transaction type in the CASHDBO.CASH_ACTIVITY table for contributions called in by the Fund.  LPCASH is the transaction type for distributions from the fund to the LPs.  This example divides the ending market value of $925,000 by the sum of contributions $750,000.  The result is a RVPI=1.2333. (LPCASH have no impact).

Eagle Performance Money Multiple Fields     

The RVPI multiple is an option found on Money Multiple fields.  Money Multiple fields are in General Reporting in the Custom fields folder.  Once a new Money Multiple field is created, you can select the Money Multiple Residual Value to Paid in Capital option

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The Money Multiple Field type is also available in Metadata Center.  You can find Money Multiple fields under Direct and Derived fields and by setting the Field Type Parameter to Money Multiple.

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Use Cash Flows Across a Date Range

The Money Multiple Field Type is a Performance Calculation based field and the result can be committed to the Performance database for downstream analysis.  It is designed to utilize data from the CASHDBO.CASH_ACTIVITY table and HOLDINGDBO.POSITION_DETAIL table.  Money Multiple fields offer the unique capability to sum cash flows across a time range. 

The cash flows are selected using the Cash Adjustment field logic to identify flows that meet the specific criteria for Private Equity contributions or distributions.

Cash Adjustment fields can use security reference data as well as cash transaction details to select the correct flows.  In this example the Cash Adjustment field is selecting Capital Base Fund Investments which are Private Equity Investments, transaction types equal to LPCASH, and event types equal to RECPTS (receipts) to define distributions to LPs.

Residual Market Value

The RVPI field requires an ending market value for the residual value.   For this the RVPI field uses a Detail Calculation fields to define the security criteria and also to select the field in POSITION_DETAIL table where the market value is stored. The market value will be taken from the report results end date. Here is an example:

Define the Date Range

Begin Date

You can define the begin date by selecting a specific date or using the date macros provided in the Begin Date options. For Performance Composites (ACOM) the inception date is the most recent date of the membership Start Date or the Inception Date within the member’s range. For Reporting Composites (COMP) the Inception Date is simply the member inception date for those who are members as of the report's end effective date.

End Date

The field’s end date is always the end date of the calculation single period in each performance calculation result.

Build Money Multiple Fields

Money Multiple fields are designed for Performance Calculation reports.  They can be selected from the Custom folder in General Reporting or by selected the Money Multiple as the Field Type in Metadata Center.

All Money Multiple fields in a Field Rule must have the same begin date.  If not the report will result in an error and null values in the report results.

Field Options

View the Results

RVPI field results will show up in the security rows for the securities which have cash flows and market values that meet the criteria of the Cash Adjustment and/or Detail Calculation fields selected.  The security criteria should be the same in both fields. 

Along with the RVPI field the report results also display the supporting fields Contributions Cash Flow (CCF) and Ending Market Value (EMV) in the results.  In this example RVPI ITD is the resulting RVPI value, RVPI ITD CCF is the summed contributions, and RVPI ITD EMV is the residual value for the relevant securities.