Accounting for private equity

Speaker

Andre Lanser
About The Speaker

Andre is a seasoned corporate trainer and finance practitioner with a career spanning decades across Private Equity, Credit, Corporate Finance, Valuation, and Financial Modeling. A qualified Chartered Accountant trained at PricewaterhouseCoopers, he has accumulated deep commercial experience across diverse industries and spent over 15 years in the Venture Capital and Private Equity space. His global training portfolio includes prestigious institutions such as Societe Generale, Citi Group, Standard Chartered, Banco Santander, Westpac, and the Islamic Development Bank, among many others.

What truly sets Andre apart is his ability to demystify complex financial concepts for both finance and non-finance audiences alike. His training style is highly interactive and conversational ; rooted in realworld case studies and constantly refreshed content, making technical subjects accessible without sacrificing depth. As a CPD-accredited IFRS trainer for the South African market and a specialist in banking, credit analysis, derivatives, and financial modeling, Andre brings a rare blend of practitioner credibility and pedagogical excelence to every room he enters.

Upcoming Event

Accounting for private equity

  • July 10th & 13th, 2026
  • Online
  • 1 pm to 4 pm
  • Rs 10,000 (MQA Approved & HRDC Refundable up to 75%)
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Course Details
Course overview

This course provides an introduction to private equity accounting, progressing from foundational principles to intermediate financial analysis and performance measurement. It equips participants with the knowledge required to understand, review, and interpret private equity financial statements and key performance metrics.

By the end of this workshop, students will be able to:

  • Understand the structure and terminology of private equity funds
  • Interpret key components of private equity financial statements
  • Apply core accounting concepts and reporting frameworks
  • Analyse fund performance using industry-standard metrics
  • Confidently review financial information and support governance discussions 
Course details

Module 1 - Structure of a Private Equity Fund and Terminology

Fund Structure Overview:

  • Limited partnership structure
  • Master-feeder structures
  • Parallel Funds
  • Co-investment vehicles

Key Parties:

  • General partner (GP)
  • Limited Partners (LPs)
  • Management Company
  • Portfolio Companies

The Limited Partnership Agreement (LPA):

  • Legal framework
  • Capital commitments
  • Fee structures
  • Waterfall provisions

Basic Terminology:

  • Capital Commitment
  • Capital Call
  • Drawdown and distribution
  • Management fee and carried interest

The Lifecycle:

  • Formation
  • Investment Period
  • Harvest Period
  • Extension and continuation funds

Module 2 - Private Equity Financial Statements and Accounting

Core accounting terminology:

  • Net asset value (NAV)
  • Realized versus unrealized gain and loss
  • Income recognition

Key components of private equity financial statements (US GAAP/IFRS):

  • Statement of assets and liabilities (Balance Sheet)
  • Schedule of investments (SOI)
  • Statement of operations
  • Statement of cash flows
  • Statement of partners’ capital accounts (PCAP)

Providing information to the accounts team:

  • Managing capital notices
  • Deal closing documents
  • Expense invoices

Module 3 - Framework and Reporting

Framework of Financial Reporting:

  • IFRS versus US GAAP
  • Investor-defined accounting framework

Components of a Complete Set of Financial Statements:

  • Notes to the financial statements
  • Schedule of investments

Directors’ Considerations in Financial Statement Presentation:

  • Fiduciary duties
  • Going concern
  • Reporting timelines

Concepts, Policies, and Estimates:

  • Fair Value Measurement
  • Consistent application of valuation policies

Reviewing Financial Statements:

  • Audit preparation and working with external auditor

 

Introduction to Group Accounts:

  • Consolidation requirements- Topco/Midco/Bidco structure

Module 4 - Performance Metrics and Fee Allocation

Internal Rate of Return (IRR) – overview:

  • Gross versus net IRR
  • Time-weighted versus money-weighted returns

Performance Metrics (LPA specific):

  • DPI (Distributions to Paid-In Capital) – realized returns
  • RVPI (Residual Value to Paid-In Capital) – unrealized value
  • TVPI (Total Value to Paid-In Capital) – overall investment multiple (DPI + RVPI

Performance Carry Allocation (Waterfall Calculation):

  • European versus American waterfall models
  • Preferred return and hurdle calculation
  • Catch-up calculations
  • Accounting for carried interest payable

Total Expenses and Performance Carry Allocation:

  • Management fees
  • Deal expenses
  • Broken deal cost

Module 5 - Operational Accounting and Ratios

Net Investment Income Ratio:

  • Understanding income generation versus management fees

Performance Metrics (LPA specific):-

  • DPI (Distributions to Paid-In Capital) – realized returns
  • RVPI (Residual Value to Paid-In Capital) – unrealized value
  • TVPI (Total Value to Paid-In Capital) – overall investment multiple (DPI + RVPI)

Operating Expense Ratio:

  • Managing and accruing fund-level expenses

Journal Entries and GL Management:

  • Setting up the GL
  • Capital call entries
  • Investment acquisition entries
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