Private Equity - An Introduction to Fund Accounting & Carried Interest

Introduction

This webinar provides a 30-minute overview on the principles of accounting for private equity funds. Fund accounts are required to enable each limited partner investor in funds to track their capital contributions and distributions of capital profits.

This webinar will cover how to deal with fund raising costs, manager’s remuneration and carried interest. Methods of valuation of portfolio companies and how to measure private equity returns are also outlined.

If you wish to learn about the fundamental aspects of private equity fund accounting, then this introductory level webinar is for you.

What You Will Learn

The webinar will cover the following:

• Brief recap on the private equity fund raising and investment process
• GP/LP relationship
• Principles of accounting for the PE fund
• Separate records for each limited partner investor
• Accounts prepared in accordance with IFRS; differences with US GAAP
• Treatment of fund raising costs
• Management remuneration
• Carried interest: ‘fund as a whole’ basis versus ‘deal by deal’ basis
• Distribution waterfall
• Allocation and vesting of carried interest
• Valuation of portfolio companies
• Example of Meta/Facebook valuation
• Invest Europe Investor Reporting Guidelines
• Measuring PE returns: IRR and multiple
• Investor relations
• Example summary PE fund accounts

This webinar was recorded on 11th August 2022