thewealthworks Customer Support Portal

Enabling Private Equity Investment Ledgers in Troika

From the Wealth Management module, Investment tab, select the private equity fund 'investment' record using the menu option Investment Details. If the record doesn't already exist, create a new record by clicking 'Add'.

Check the option 'Private Equity'.

Select an investment 'Type' for Private Equity, if it already exists.

If it doesn’t exist, new investment types can be added from the Troika Utilities module, in the menu option Investment Types and Default Codes.  Click on the Add New Entry button.  Remember to assign nominal account codes for the following default types:

• Balance Sheet (Capital Drawn Down)
• Capital Bank
• Income
• Income Bank
• Profit/Loss

Ensure you have nominal accounts in the master nominal account codes for Recallable Distributions, Return of Capital and PE Income.

Recording Commitments

For the client who has a commitment in the private equity fund, from the Troika Wealth Management module, Client tab, select the menu option Investment Ledgers.  Add the new investment ledger by clicking ‘New Ledger’.  Once added, select the ledger by double clicking on the ledger name or click ‘View Detail’.

Click on the scroll icon next to the commitment button.

Enter the date, currency and amount of commitment in the screen that opens.  The commitment can be increased by adding additional records in this option.  The default exchange rate at the date of the commitment is used to calculate the total commitment displayed in the ledger currency on the investment ledger.

Posting a Draw Down Transaction

To record a drawn down transaction, select the Transactions - Add menu option.  Select the Investment button, and the bank account nominal account code at the top of the screen.  Enter the date of the draw down, and the private equity investment ledger.   

Select the type 'Journal / Transfer'.  Enter the Amount and Currency, and tab down to the transaction sub-type drop down option in the bottom left hand corner.  Select 'Draw Down' and then the nominal account code for Capital Drawn Down.  

Add the line, and click Enter to post the transaction.

Posting a Recallable Distribution Transaction

To record a recallable distribution transaction, select the Transactions - Add menu option.  Select the Investment button, and the bank account nominal account code at the top of the screen.  Enter the date of the distribution, and the private equity investment ledger.  

Select the type 'Journal / Transfer'.  Enter the Amount and Currency, and tab down to the transaction sub-type drop down option in the bottom left hand corner.  Select 'Recallable Distribution', and then the nominal account code for Recallable Distributions.

If the same nominal account code for Recallable Distributions and Capital Drawn is used, the balance on this account will equal Net Capital Drawn.  If other private equity investments are held and the postings made to the same nominal account code the Net Capital Drawn can only be calculated using the Private Equity valuation report.

Enter the amount and add the line.  If the total amount debited to the capital bank account is recallable, then click Enter to post the transaction.  If other distributions types are part of the bank debit, then add additional lines as described below.

Posting a Return of Capital Transaction

To record a return of capital, select the Transactions - Add menu option.  Select the Investment button, and the bank account nominal account code at the top of the screen.  Enter the date of the capital returned, and the private equity investment ledger.  

Select the type 'Journal / Transfer'.  Enter the Amount and Currency, and tab down to the transaction sub-type drop down option in the bottom left hand corner.  Select 'Return of Capital', and then the nominal account code for Return of Capital. 

Enter the amount and add the line.  If the total amount debited to the capital bank account is the return of capital then click Enter to post the transaction.  If other distributions types are part of the bank debit, then add additional lines as described below.

Posting Private Equity Income Transaction

To record a private equity income transaction, select the Transactions - Add menu option.  Select the Investment button, and the bank account nominal account code at the top of the screen.  Enter the date of the income, and the private equity investment ledger.   

Select the type 'Journal / Transfer'.  Enter the Amount and Currency, and tab down to the transaction sub-type drop down option in the bottom left hand corner.  Select 'Income', and then the nominal account code for the income.

Enter the amount and add the line.  If the total amount debited to the capital bank account is income, then click Enter to post the transaction.  If other distributions types are part of the bank debit, then add additional lines as described below.

Distributions with Income, Recallable Capital and Capital Returned

From Troika Wealth Management, Client tab, select the Transactions - Add menu option.  Select the Investment button, and the bank account nominal account code at the top of the screen.

Select the type 'Journal / Transfer'.  Enter the total amount banked and the Currency, and tab down to the transaction sub-type drop down option in the bottom left hand corner.

Select each distribution sub type as described above, and then the nominal account code for each distribution type.  Enter the amount and add the line.  When the total distribution has been allocated, click Enter to post the transaction.

Investment Ledger Display

 The ‘units’ are not displayed on the client ledger or ledger details for private equity type investments.  The book cost is still displayed; however this is relabelled ‘capital at work’ in the investment ledger detail.

Entering the Unrealised Investment Multiple in the Price File

The unrealised investment multiple (%) should be entered in the price file. From Troika Wealth Management, Investment tab, select the Price Files and Yields menu option.  Create a new price file or select an existing price file.  Enter the percentage value in ‘Price Column’.

Valuation of Private Equity investments

To run the report ‘Private Equity Valuation’, select it from within Troika Wealth Management, Client tab, and the Reports menu option.  Select a valid price file and enter the date as to which the valuation should be run at.  Preview the report.

Please note that case and private equity collateral balances are taken from nominal account balanced as at the report date, where the master nominal account code is set with the types BNK and PEC respectively.