Elysys Wealth – Private Equity Funds

The Auto-Adjust PE Market Value functionality allows users to automatically update the market price of the private equity funds at the same time when posting transactions.

Summary

• When processing a capital call or distribution ➔ the market value increases at the date of the transaction by the amount added in the contract,
• When processing a capital return ➔ the market value decreases at the date of the transaction by the amount added in the contract,
• When processing a reallocation ➔ the market value is updated accordingly,
• When processing an impairment ➔ the market value increases at the date of the transaction by the amount added in the contract.
• When a PnL transaction or a commitment is recorded ➔ the market value doesn’t change.

How to enable it

Access the Investment General Setup and toggle on the Auto-Adjust PE Market Value field

How it works – use case

Start fresh with a new fund with its market value being zero
Process the commitment
Processing the commitment won’t affect the valuation
Process a capital call
User is prompted with the following message
By choosing Yes, the valuation will be incremented
Process a second capital call
The same prompt is shown
By choosing Yes, the valuation will be incremented
Process a distribution
The same prompt is shown
*By choosing Yes, the valuation will be incremented
Process a PnL transaction (Dividend)
No prompt message is shown, and the valuation is not impacted
Process a capital return
By choosing Yes, the valuation will be incremented

*After processing a distribution, the reallocation is done via the reallocation journal. Once this is done, the valuation will be changed accordingly i.e capital return ➔ the valuation is decreased.