The Essential Guide to Private Equity Accounting: Principles, Applications, and Best Practices.pdf
Today's only comprehensive guide to private equity accounting has now been fully updated to reflect the latest standards and best practices, as well as the author's unique experience teaching hundreds of fund professionals. In The Essential Guide to Private Equity Accounting, Second Edition, Mariya Stefanova brings together comprehensive essential accounting guidance and advice for all private equity practitioners and fund accountants worldwide: information once available only by learning from peers. Replete with up-to-date, user-friendly examples from all main jurisdictions, this guide explains the precise workings and lifecycles of private equity funds; reviews commercial terms; evaluates structures and tax treatments; shows how to read Limited Partnership Agreements; presents best-practice details and processes, and identifies costly pitfalls to avoid. This edition's extensive updates include: * Rewritten coverage of consolidation, including the new consolidation exemption for investment entities * Revamped coverage of reporting for investor relations, reflecting the latest ILPA and IPEV guidelines * Coverage of new IFRS standards applicable to accounting for investments, and additions to US GAAP * Updated coverage of rebalancing, allocations, carry modeling, performance metrics, IRR limitations, auditing, and many other topics * A brand-new 6-chapter supplement covering PE accounting for FoFs and limited partners; as well as real estate, infrastructure, debt, and mezzanine funds
MARIYA STEFANOVA (London, UK), Partner at Private Equity Accounting Insights, has extensive experience in the specialist field of private equity accounting. As a senior trainer, she has trained over 150 fund accountants. Through her firm, she provides complete technical and training solutions for fund administrators and private equity houses, investor reporting services; carried interest design and modelling, and private equity accounting publications. Her professional experience spans roles at Augentius Fund Administration, Mourant International Finance Administration (now State Street), the French investment bank Calyon, and the private equity real estate manager Patron Capital Partners.
1. Introduction to PE Accounting 2. PE Structures and Type of Funds 3. Why is PE Accounting Different? 4. The LPA Explained 5. Fund Lifecycle 6. Initial, Subsequent Closings, Rebalancing and Equalisation 7. Drawdowns 8. Partner 9. Investments 10. Valuations - the Accountant's Perspective 11. Expenses and Income 12. Management Fee Versus Priority Profit Share 13. Drawdowns 14. Carried Interest 15. Fund Financial Statement 16. More About Allocations 17. Consolidation 18. Performance Measurement 19. Reporting Requirements for Investors Relations Purposes 20. PE Accounting - The Auditor's Perspective Appendix I. PE Fund Structuring Appendix II. Sample Drawdown Notice Appendix III. Sample Distribution Notice Appendix IV. Key Dates in Fair Value Reporting of Alternative Assets New Supplement: 1. PE Accounting for FoFs 2. PE Accounting for Limited Partners 3. Real Estate Funds 4. Infrastructure Funds 5. Debt Funds 6. Mezzanine Funds The only complete practitioner's guide to private equity accounting: now fully updated to reflect new standards, guidelines, and best practices