Private equity accounting and reporting system and method
A private equity accounting and reporting system and method are provided herein.
1. A computer-implemented accounting method for a private equity investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining, by the computer via an electronic data input interface, an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining, by the computer, a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target; and
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, the computer determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger, by the computer, a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers comprise the following subsets:
a first subset comprising:
a first identifier distinguishably associated with an Invested—Equity transaction type; and
a second identifier distinguishably associated with an Invested—Other outside basis transaction type;
a second subset comprising a third identifier distinguishably associated with an Equity returned transaction type; and
a third subset comprising:
a fourth identifier distinguishably associated with an Other Realized gains/losses transaction type;
a fifth identifier distinguishably associated with a Non-Cash Realized gains transaction type; and
a sixth identifier distinguishably associated with an Unrealized appreciation/depreciation for current period transaction type.
2. The method of claim 1 further comprising obtaining a reporting component associated with said particular combination of said at least four particular transaction dimensions by operating on all accounting entries in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions.
3. The method of claim 1 wherein said at least six asset transaction type identifiers, from which said investment entity gene-ledger-account-identifier segment is selected, further comprise a subset of identifiers distinguishably associated with a plurality of debt asset transaction types comprising: Invested—Debt, and Debt repayment.
4. The method of claim 1 wherein a subset of said at least six asset transaction type identifiers, from which said transaction type gene-ledger-account-identifier segment is selected, are distinguishably associated with a plurality of equity asset transaction types comprising at least a majority of: Invested-Equity; Invested-CR (credit) Adjustments; Invested-DR (debit) Adjustments; Invested-Other outside basis; Invested-Blocker expenses; Equity from bridge conversions; Converted from debt interest; In-kind contribution of debt; Capitalized dividends; Equity received for debt; Equity rec'd (received) for debt due to merg (merger); Other equity exchanges; Spin-out; Exercise stock rights; Convert convertible securities; New securities—Basis reallocation; Internal entity restructuring; Equity returned; Sale of equity; Unrecovered equity; and Unrealized Adj (adjustments)—Equity.
5. The method of claim 1 wherein a subset of said at least six asset transaction type identifiers, from which said transaction type gene-ledger-account-identifier segment is selected, are distinguishably associated with a plurality of debt asset transaction types comprising at least a majority of: Invested-Debt; Invested-Debt CR (credit) adjustments; Invested-Debt DR (debit) adjustments; OID (original issue discount) on funded debt; Capitalized interest-Debt; Periodic accreting interest; OID amortization; Original Issue Discount; OID Amortization; Debt received for equity; OID on exchange debt; OID amortization on exchange debt; Bridge converted to debt; Other debt exchanges; Bridge converted to equity; Cony (convertible) debt converted to equity; Contributed debt; Debt security repayment; Debt transfer; Bridge repayment; Unrecovered debt; and Unrealized adjustments on debt.
6. The method of claim 1 wherein at least one of said plurality of investment target identifiers comprises an investment species identifier.
7. The method of claim 6 , wherein said investment species identifier is selected from a direct investment identifier, an indirect investment identifier, and a special purpose entity identifier.
8. A non-transient tangible computer-readable medium containing instructions that when executed by a processor, perform an accounting method for a private equity investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target; and
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers comprise the following subsets:
a first subset comprising:
a first identifier distinguishably associated with an Invested—Equity transaction type; and
a second identifier distinguishably associated with an Invested—Other outside basis transaction type;
a second subset comprising a third identifier distinguishably associated with an Equity returned transaction type; and
a third subset comprising:
a fourth identifier distinguishably associated with an Other Realized gains/losses transaction type;
a fifth identifier distinguishably associated with a Non-Cash Realized gains transaction type; and
a sixth identifier distinguishably associated with an Unrealized appreciation/depreciation for current period transaction type.
9. An apparatus comprising a processor and a memory containing instructions that when executed by the processor, configure the processor to perform an accounting method for an investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target; and
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers comprise the following subsets:
a first subset comprising:
a first identifier distinguishably associated with an Invested-Equity transaction type; and
a second identifier distinguishably associated with an Invested—Other outside basis transaction type;
a second subset comprising:
a third identifier distinguishably associated with an Equity returned transaction type; and
a third subset comprising:
a fourth identifier distinguishably associated with an Other Realized gains/losses transaction type;
a fifth identifier distinguishably associated with a Non-Cash Realized gains transaction type; and
a sixth identifier distinguishably associated with an Unrealized appreciation/depreciation for current period transaction type.
10. A computer-implemented accounting method for a private equity investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining, by the computer via an electronic data input interface, an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining, by the computer, a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target; and
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, the computer determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger, by the computer, a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers, from which said investment entity gene-ledger-account-identifier segment is selected, further comprise subset of identifiers distinguishably associated with a plurality of debt asset transaction types comprising: Invested-Debt, and Debt repayment;
wherein said at least six asset transaction type identifiers include a subset of debt asset transaction type identifiers comprising:
a first identifier distinguishably associated with an Invested-Debt transaction type;
a second identifier distinguishably associated with a Debt repayment transaction type.
11. The method of claim 10 , further comprising obtaining a reporting component associated with said particular combination of said at least four particular transaction dimensions by operating on all accounting entries in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions.
12. The method of claim 10 , wherein a subset of said at least six asset transaction type identifiers, from which said transaction type gene-ledger-account-identifier segment is selected, are distinguishably associated with a plurality of equity asset transaction types comprising at least a majority of: Invested-Equity; Invested-CR (credit) Adjustments; Invested-DR (debit) Adjustments; Invested—Other outside basis; Invested-Blocker expenses; Equity from bridge conversions; Converted from debt interest; In-kind contribution of debt; Capitalized dividends; Equity received for debt; Equity rec'd (received) for debt due to merg (merger); Other equity exchanges; Spin-out; Exercise stock rights; Convert convertible securities; New securities—Basis reallocation; Internal entity restructuring; Equity returned; Sale of equity; Unrecovered equity; and Unrealized Adj (adjustments)-Equity.
13. The method of claim 10 , wherein a subset of said at least six asset transaction type identifiers, from which said transaction type gene-ledger-account-identifier segment is selected, are distinguishably associated with a plurality of debt asset transaction types comprising at least a majority of: Invested-Debt; Invested-Debt CR (credit) adjustments; Invested-Debt DR (debit) adjustments; OID (original issue discount) on funded debt; Capitalized interest—Debt; Periodic accreting interest; OID amortization; Original Issue Discount; OID Amortization; Debt received for equity; OID on exchange debt; OID amortization on exchange debt; Bridge converted to debt; Other debt exchanges; Bridge converted to equity; Cony (convertible) debt converted to equity; Contributed debt; Debt security repayment; Debt transfer; Bridge repayment; Unrecovered debt; and Unrealized adjustments on debt.
14. The method of claim 10 , wherein at least one of said plurality of investment target identifiers comprises an investment species identifier.
15. The method of claim 14 , wherein said investment species identifier is selected from a direct investment identifier, an indirect investment identifier, and a special purpose entity identifier.
16. A non-transient tangible computer-readable medium containing instructions that, when executed by a processor, perform an accounting method for a private equity investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target;
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers, from which said investment entity gene-ledger-account-identifier segment is selected, further comprise subset of identifiers distinguishably associated with a plurality of debt asset transaction types comprising: Invested-Debt, and Debt repayment;
wherein said at least six asset transaction type identifiers include a subset of debt asset transaction type identifiers comprising:
a first identifier distinguishably associated with an Invested-Debt transaction type;
a second identifier distinguishably associated with a Debt repayment transaction type; and
a third identifier distinguishably associated with an AR (accounts receivable) for securities sold transaction type.
17. An apparatus comprising a processor and a memory containing instructions that when executed by the processor, configure the processor to perform an accounting method for an investment portfolio comprising a plurality of investments, the investment portfolio having a plurality of investment entities, the accounting method comprising:
obtaining an investment transaction indication specifying a combination of at least four particular transaction dimensions, including a particular investment entity, a particular investment target, a particular transaction type, and a particular security type;
determining a gene-ledger-account identifier identifying a gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, said gene-ledger-account identifier comprising at least four gene-ledger-account-identifier segments as follows:
a transaction type gene-ledger-account-identifier segment comprising one of at least six asset transaction type identifiers selected according to said particular transaction type;
an investment entity gene-ledger-account-identifier segment comprising one of a plurality of unique investment entity identifiers selected according to said particular investment entity;
an investment target gene-ledger-account-identifier segment comprising one of a plurality of investment target identifiers selected according to said particular investment target; and
a security type gene-ledger-account-identifier segment comprising one of a plurality of security type identifiers selected according to said particular security type;
using said determined gene-ledger-account identifier, determining whether said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions exists in a general ledger associated with said investment transaction indication;
when said gene-ledger account is determined not to exist in said general ledger, creating in said general ledger a new gene-ledger account, identified by said gene-ledger-account identifier, to exclusively record investment-transaction-related accounting entries associated with said specified combination of said at least four particular transaction dimensions; and
recording, in said gene-ledger account uniquely associated with said specified combination of said at least four particular transaction dimensions, an accounting entry individually corresponding to said investment transaction indication specifying said combination of at least four particular transaction dimensions;
wherein said at least six asset transaction type identifiers, from which said investment entity gene-ledger-account-identifier segment is selected, further comprise subset of identifiers distinguishably associated with a plurality of debt asset transaction types comprising: Invested-Debt, and Debt repayment;
wherein said at least six asset transaction type identifiers include a subset of debt asset transaction type identifiers comprising:
a first identifier distinguishably associated with an Invested-Debt transaction type; and
a second identifier distinguishably associated with a Debt repayment transaction type.