Private Equity Account Type

gasherbrum1997

Does anyone have any guidance on creating the correct type of account for private equity investments?

gasherbrum1997

I see. Thanks.

NotACPA

Well, It would be an Investment type account ... probably with a fictitious security representing your equity position.

gasherbrum1997

Thank you for the response.

NotACPA

gasherbrum1997 said:

Thank you for the response.

I'd set up that security, initially, with a number of shares equal to your Equity position in dollars and cents, and a value of $1.  THEN, adjust the value of the security as the value of your position changes. 

Trying to change the number of units gets really messy, unless, for some reason (additional purchase, unit redemption, etc) the number of units actually changes.

gasherbrum1997

Thanks for the advice. I am not sure I can identify my actual equity position given the complexity. Might make sense to create a custom Security, set all capital contributions at $1=1 share, and then adjust Security values once redemptions/return of capital becomes greater than the contributed capital (fingers crossed). Not sure if this makes sense.

NotACPA

That's the same thing that I suggested, in different words.

gasherbrum1997

I see. Thanks.