Private Equity Accounting, Investor Reporting, and Beyond

by Mariya Stefanova

Overview

Today's only advanced comprehensive guide to private equity accounting, investor reporting, valuations and performance measurement provides a complete update to reflect the latest standards and best practices, as well as the author's unique experience teaching hundreds of fund professionals. In Private Equity Accounting, Investor Reporting and Beyond  Mariya Stefanova brings together comprehensive advanced 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.

Product Details

ISBN-13:	9780133761528
Publisher:	Pearson Education
Publication date:	02/26/2015
Sold by:	Barnes & Noble
Format:	eBook
Pages:	320
File size:	9 MB
Age Range:	18 Years

About the Author

Mariya Stefanova is a founding partner of Private Equity Accounting Insights (PEAI), a private equity training and consultancy firm, providing specialist training and technical advice to GPs, LPs, and fund administrators. She has more than eleven years of experience in private equity accounting and investor reporting and more than seven years of experience in training, during which period she has trained over a thousand fund accountants and senior executives on the GP, LP, and fund administration side. PEAI Group is also providing specialist PE publications such as the PEAI Private Equity Technical Journal.  Mariya is also the author of the bestseller Private Equity Accounting: The Global Guide (https://www.privateequityinternational.com/peaccounting/), published by PEI Media in October 2011.
     Previously, Mariya worked in the technical department of Augentius Fund Administration LLP, a premium provider of fund administration services specialized in private equity and real estate funds. She was in charge of the technical training of the client services accountants and keeping them up-to-date with the industry and accounting developments. Mariya also provided advice to clients and client-services accountants in resolving complex technical issues, as well as performed technical reviews of accounts, quarterly investors’ reports, and complex calculations.
     Before joining Augentius in 2008, Mariya worked for fund administrator Mourant International Finance Administration (now State Street) looking after a portfolio of private equity clients. Before joining Mourant in 2006, Mariya worked for Calyon, a French investment bank; and before Calyon, she worked for Patron Capital Partners, a leading European opportunistic real estate manager.
     Mariya started her career with a large chemical company in Bulgaria, where she was chief accountant and was subsequently a financial controller for a Belgian industrial catering company.
     Mariya holds a Masters in Finance and Accounting from the University of National and World Economy (UNWE).
Web: http://peaccountinginsights.com

Contributors: Yasir Aziz and Ramon Louw, Deloitte; David L. Larsen, Duff & Phelps; Roland Mills, PwC; Stephanie Coxon, PwC; Henry Todd, KPMG; Graeme Faulds, TopQ

 

Table of Contents

PART I:  PRIVATE EQUITY ACCOUNTING, INVESTOR REPORTING, AND BEYOND     1
Chapter 1  Private Equity Structures and Their Impact on Private Equity Accounting and Reporting     3
Structuring Considerations in Private Equity     4
Main Building Blocks and Vehicles of a PE Structure      6
    Domiciliation: Where to Form the Fund—Onshore or Offshore?     9
    Simple or Complex?     9
Using a Combination of Vehicles     10
    Master-Feeder Funds     11
    Structures Involving Blockers     13
    Parallel Structures     14
    Master-Feeder or Parallel Structure?     15
Alternative Private Equity Structures     16
Summary     17
Chapter 2  The Importance of Allocations and Allocation Rules     19
Introduction: Why Start with Allocations and Allocation Rules?      20
What Is an Allocation Rule, and Why Is It So Important in Private Equity Accounting?      20
    Types of Allocation Rules     21
Why Are Different Allocation Rules Used? Is Excel-Based Accounting Adequate?      22
How Do Inaccurate Allocations Affect Investors?      27
How Can You Identify the Allocation Rules in an LPA?      27
What Do You Do If the Allocation Rules Stipulated in the LPA Are Flawed?     28
What Is the Best Way of Doing Allocations?      29
    A Word of Caution for LPs     30
Summary     30
    Last Advice for LPs     30
    Last Advice for GPs     31
Chapter 3  Private Equity Accounting Processes: Some Neglected Processes That Could Expose GPs     33
Introduction     34
Some Neglected Private Equity Accounting Processes     35
    Rebalancing     35
    Partner Transfers/Assignments     37
Summary     40
Chapter 4  Investor Reporting: ILPA versus IPEV IRG     41
Introduction     42
Existing Accounting Frameworks and GAAPs Used in Private Equity     43
What Is Investor Reporting?     44
Existing Reporting Framework      45
Comparisons among ILPA, IPEV, and EVCA Reporting Guidelines     45
Transition from EVCA RG and Other Local Reporting Guidelines to IPEV IRG     50
ILPA or IPEV IRG Compliant?      51
Summary     52
Endnotes     52
Chapter 5  ESG Reporting and Responsible Investing     53
Introduction     54
Why ESG and RI?      55
Potential Material Impacts of ESG Factors and Value Creation     56
What Are the Implementation Challenges?      57
Some ESG Issues     57
Sample Procedure for RI and ESG Implementation     58
    Stage 1: Developing an RI Policy     59
    Stage 2: Identifying Specific ESG Factors and Risks     59
    Stage 3: Implemen