Robert Lee (Editor)

Different Investor Types ? Fund Accounting ? PHXA

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Waterfalls can be applied at the individual level or the fund level. The individual-level waterfall adds the most complexity for fund accounting. Tracking allocations for investors who entered the fund at different times, under different provisions or spanning tax years adds a significant fund accounting burden. Any side letters for individual investors will have to be tracked for one-off adjustments to the waterfall structure. 


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