Private equity accounting and reporting system and method

Abstract

A private equity accounting and reporting system and method are provided herein.

1 . A computer-implemented accounting method for an investment partnership entity having a plurality of partners, the accounting method comprising:
 obtaining, via an electronic data input interface, a partnership allocation transaction indication comprising an investment entity, one of the plurality of partners, and a transaction type;   selecting one of at least three transaction type identifiers from a first electronic data source in accordance with said obtained transaction type;   selecting one of a plurality of unique investment entity identifiers from a second electronic data source in accordance with said obtained investment entity;   selecting one of a plurality of partner identifiers from a third electronic data source in accordance with said obtained one of the plurality of partners;   creating, by a processor of the computer, a particular general ledger account uniquely associated with a particular combination of identifiers comprising said selected one of said investment entity identifiers, said selected one of said at least three transaction type identifiers, and said selected one of said plurality of partner identifiers.   
     
     
         2 . The method of  claim 1 , wherein said partnership allocation transaction indication further comprises a partner transaction type, the method further comprising:
 selecting one of a plurality of unique partner transaction identifiers from a fourth electronic data source in accordance with said obtained partner transaction type.   
     
     
         3 . The method of  claim 1 , wherein said at least three unique transaction type identifiers comprise a subset comprising a plurality of identifiers distinguishably associated with a plurality of partners' capital allocations transaction types 
     
     
         4 . The method of  claim 3 , wherein said plurality of partners' capital allocations transaction types comprises Net investment income/loss; Realized gains/losses; and Unrealized appreciation/depreciation. 
     
     
         5 . The method of  claim 1 , wherein said first through fourth electronic data sources comprise a single electronic data source. 
     
     
         6 . A tangible computer-readable medium containing instructions that when executed by a processor, perform the method of  claim 1 . 
     
     
         7 . An apparatus comprising a processor and a memory containing instructions that when executed by the processor, perform the method of  claim 1 . 
     
     
         8 . A computer-implemented method of reporting an investment sum for a selected investment entity, the method comprising:
 selecting, by the computer from among a multiplicity of accounts in the general ledger, a plurality of accounts comprising:
 a uniquely identifiable cash equity investment account substantially exclusively comprising a plurality of cash equity accounting entries associated with the selected investment entity and a particular equity security of a selected target; 
 a uniquely identifiable second equity investment account substantially exclusively comprising a plurality of outside basis accounting entries associated with cash expenses, other than paid in capital of said selected target, incurred by the selected investment entity to acquire said particular equity security; 
 a uniquely identifiable third equity investment account substantially exclusively comprising a plurality equity basis return accounting entries associated with cash return of basis to the selected investment entity from said particular equity security; 
 a uniquely identifiable realized gain account substantially exclusively comprising a plurality realized gain accounting entries associated with cash gains of the selected investment entity from said particular equity security; and 
 a uniquely identifiable proceeds receivable account substantially exclusively comprising a plurality proceeds receivable accounting entries associated with proceeds receivable by the selected investment entity from said equity security; 
   calculating, by the computer, a plurality of net cash flow sums comprising;
 a cash equity sum comprising said plurality of cash equity accounting entries; 
 an outside basis sum comprising said outside basis accounting entries; 
 a equity basis return sum comprising said equity basis return accounting entries; 
 a cash realized gain sum comprising said realized gain accounting entries; and 
 a receivable for securities sold sum comprising said proceeds receivable accounting entries; 
   calculating, by the computer, an investment sum comprising said equity basis return sum plus said cash realized gain sum less said cash equity sum, said outside basis sum, and said receivable for securities sold sum; and   outputting to a display device said calculated investment sum.   
     
     
         9 . The method of  claim 8 , further comprising subtotaling at least one of said plurality of net cash flow sums by transaction date. 
     
     
         10 . The method of  claim 9 , wherein said investment sum comprises a rate of return. 
     
     
         11 . The method of  claim 8 , wherein:
 said first equity investment account is uniquely identified by a plurality of account segments comprising a first selected transaction type segment unique to cash invested for equity, a selected entity segment unique to the selected investment entity, a selected investment target segment unique to the selected target, and a first security type segment unique to a type of said particular equity security;   said second equity investment account is uniquely identified by a plurality of account segments comprising a second selected transaction type segment unique to cash expenses, other than paid in capital, incurred to purchase an equity security, said selected investment entity segment, said selected investment target segment, and said first security type segment;   said third equity investment account is uniquely identified by a plurality of account segments comprising a third selected transaction type segment unique to cash return of equity investment basis, said selected investment entity segment, said selected investment target segment, and said first security type segment;   said first cash realized gain account is uniquely identified by a plurality of account segments comprising a fourth selected transaction type segment unique to cash realized gains, said selected investment entity segment,   said selected investment target segment, and said first security type segment; and   said first receivable for securities sold account is uniquely identified by a plurality of account segments comprising a fifth selected transaction type segment unique to proceeds from securities sold, said selected investment entity segment, said selected investment target segment, and said first security type segment.   
     
     
         12 . A tangible computer-readable medium containing instructions that when executed by a processor, perform the method of  claim 8 . 
     
     
         13 . An apparatus comprising a processor and a memory containing instructions that when executed by the processor, perform the method of  claim 8 . 
     
     
         14 . A computer-implemented method of creating investment reports, the method comprising:
 generating, by a segmentation processor, a plurality of account identifiers specific to an investment in an investment asset by an investment entity, wherein each account identifier comprises a plurality of identification segments, including at least a transaction type identification segment, an investment entity identification segment, an investment target identification segment, and a security type identification segment;   creating, by an account-creation processor, a plurality of accounts in an electronic general ledger data repository, in accordance with said plurality of account identifiers;   obtaining from said plurality of accounts, by a data-acquisition processor, account data related to said investment;   automatically generating, by a reporting processor without manual data manipulation, an external investment report in accordance with said account data and said account identifiers; and   automatically generating, by said reporting processor without manual data manipulation, an internal investment report in accordance with said account data and said account identifiers.   
     
     
         15 . A tangible computer-readable medium containing instructions that when executed by a processor, perform the method of  claim 14 . 
     
     
         16 . An apparatus comprising a processor and a memory containing instructions that when executed by the processor, perform the method of  claim 14 .