Skip to main content

Posts

But more about the Fund Accounting 😉🥰

Private Equity — GP & LP Accounting 📌 Complete Guide to Private Equity 1. What is Private Equity ? Private Equity (PE) refers to investments made in private companies (not listed on stock exchanges) or in public companies taken private . The goal is to restructure, grow, and eventually exit these companies at higher valuations. Involves active management by professional fund managers. Usually has long investment horizons (7–10 years). Returns mainly through capital gains (sale of portfolio companies). 2. Who is a GP? What are his Roles? GP (General Partner) is the manager of the private equity fund. Roles of GP: Fundraising: Attracting investors (Limited Partners). Deal Sourcing: Identifying companies worth investing in. Due Diligence: Analyzing financial, legal, and operational aspects before investing. Portfolio Management: Guiding companies with strategy, governance, and op...
Recent posts

Everything ABOUT 😊😊😊 PRIVATE EQUITY/Fund Accounting 😉🥰🥰

Private Equity — GP & LP Accounting (Blog-ready) Private Equity — Accounting: GP & LP Perspectives A blog-ready, color-styled, copy-paste HTML on how capital activity is recorded and reported by General Partners (GPs) and Limited Partners (LPs). Includes journal entries, eFront notes and management reporting tips. Overview — quick pills Private Equity GP Accounting LP Accounting This article focuses on accounting flows between the fund (managed by GP), investors (LPs) and portfolio companies. It also shows sample journal entries and explains how these are typically configured in fund accounting systems such as eFront. 1. Key concepts (reminder) Commitment : The total amount an LP agrees to provide to a fund. Capital Call (Drawdown) : A request by GP to LPs to fund part of their commitment. Distribution : Cash or stock returned to LPs from exits or returns. Management Fee : Fee charged by ...

KYC Interview Questions and Answers (Basic to Expert)

KYC Interview Questions and Answers (Basic to Expert) Basic to Expert-Level KYC Interview Questions and Answers This detailed list covers frequently asked KYC (Know Your Customer) interview questions across levels. It’s organized from beginner to expert level and tailored for candidates preparing for banking, NBFC, fintech, and compliance roles. ✅ Easy Level (Beginner) Question 1: What is KYC? Why is it important? Answer: KYC stands for Know Your Customer. It is important because it helps prevent fraud, money laundering, and financial crime by verifying customer identity. Question 2: What documents are collected for KYC? Answer: PAN card, Aadhaar card, passport, voter ID, driving license, utility bill, or bank statement. Question 3: What is the difference between KYC and AML? Answer: KYC verifies customer identity. AML (Anti-Money Laundering) is broader and includes detecting and reporting suspicious activity. KYC is part of AML. Question 4: Wh...

Top sectors investment in India

Top Sectors for Investment in India (2025) As of May 2025, India's stock market presents several promising sectors for investors, driven by robust economic indicators, government initiatives, and sector-specific growth dynamics. Here are some key sectors and representative stocks to consider: 1. Banking & Financial Services Why It Matters: Strong credit growth, improved asset quality, and favorable interest rate outlooks bolster this sector. Representative Stocks: HDFC Bank, ICICI Bank, State Bank of India (SBI), Bajaj Finance. Insights: Analysts highlight robust fundamentals and increasing investor interest in Indian banks. Read more 2. Infrastructure & Capital Goods Why It Matters: Government-led capital expenditure and infrastructure development drive growth. Representative Stocks: Larsen & Toubro (L&T), PNC Infratech, HG Infra Engineering, IRB Infrastructure Developers. Insights: Analysts have identified several top-performing...

Stock rates vs gold rates

How Gold Prices Impact Stock Markets Gold prices and stock markets often share a complex relationship, influenced by economic trends, investor sentiment, and broader financial conditions. Understanding this relationship can provide valuable insights for traders and long-term investors. Impact of Rising Gold Prices on Stocks Negative Correlation (Generally) Market Uncertainty: Rising gold prices often signal economic instability or geopolitical risk, prompting investors to move funds from risky assets like equities to safer assets like gold, leading to lower stock prices. Higher Input Costs: Sectors like jewelry, electronics, and manufacturing face increased production costs, potentially reducing profit margins and stock performance. Positive Correlation (In Some Cases) Gold Mining Stocks: Companies involved in gold mining typically benefit from higher gold prices as their profit margins improve. Inflation Hedge: In infla...

ETFs Explained - A Comprehensive Guide

ETFs Explained - A Comprehensive Guide ETFs Explained - A Comprehensive Guide What are ETFs? ETFs, or Exchange-Traded Funds, are investment funds that trade on stock exchanges like individual stocks. They hold a collection of assets like stocks, bonds, commodities, or a mix of different asset classes, allowing investors to gain diversified exposure without directly buying each underlying asset. How ETFs Work Basket of Securities: ETFs typically track an index like the Nifty 50, S&P 500, or a specific sector. They hold a collection of assets designed to replicate the performance of the underlying index. Shares and Units: Investors buy shares of the ETF, representing partial ownership of the fund’s underlying assets. Real-Time Trading: ETFs are traded throughout the day on exchanges, with prices fluctuating based on supply, demand, and the value of the underlying assets. Low Expense Ratios: ETFs generally have lower ...

Profiting in a Down Market - Low Risk Strategies

Profiting in a Down Market - Low Risk Strategies Profiting in a Down Market - Low Risk Strategies Why Consider Short-Term Bearish Strategies? If you typically invest for the long term by buying when prices are low and holding until they rise, you may wonder how to approach a market downturn. Just as you aim to benefit from price appreciation, there are strategic ways to profit when stock prices decline, without taking excessive risk. Top Low-Risk Strategies for a Bearish Market Put Options: These give you the right to sell a stock at a fixed price, providing protection against falling prices. Ideal for long-term investors seeking downside protection. Inverse ETFs: These funds are designed to move in the opposite direction of the market, offering a simple way to hedge without shorting individual stocks. Long-Short Equity Strategy: Balances long positions in fundamentally strong stocks with short positions in overvalued ones, ...