Equalizations | Investor Close

Aisha123529 Jan, 2020Business

The subsequent investors are required to compensate the initial investors for the fact that the initial investors have had their capital tied up in the fund for longer. This is an interest compensation charge and it is based on the capital amount from the subsequent investor, an agreed interest rate, time apportioned for the time between the initial and the subsequent closing. This information can be easily maintained by using a Private Equity Financial & Accounting Software or fund administration software.