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Asked by

Community Member

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Accounting & Taxes

How are Capital Calls for the GP’s Commit made on Decile Hub?

Obviously since the GP is making the Capital Call, it knows that he also needs to deposit his share of the funds, but I assume that that should be registered formally somewhere in the system and I couldn't find where. The GP does not appear in the Capital Commitment table when you use the option to make a capital call, so wondering if it gets roped in automatically.
3 See in Base
0

Answered by

Zander Buteux

on

  1. A GP will initiate a capital call
  2. This notice is delivered to LPs by email and is an alert in their Decile pro account
  3. In the decile pro account they are shown the wiring instructions to complete the transaction
  4. The transaction is picked up in Accounting submenu "Cash Reconciliation"
  5. When the accounting team validates the transaction the LP is moved into the capital call pipeline "Funds Received"
  6. This dollar value received is then shown in two places Decile Pro account for the LP "Capital Contributions" and in the Fund's Capital Accounts Page under the column "Capital Contribution"
0

Answered by

Mau Robles

on

Thank you for your answer Zander. Can you also please provide some insight into how the GP's own capital commit gets registered into the system when he initiates the capital call to LPs?

Considering that the GP himself does not appear listed in the "Capital Commitment" table when he initiates a capital call (only LPs appear listed there), it makes sense to assume that steps 1 through 3 as you described them do not involve the GP (why would the GP need to send an email to himself, get an alert in his Decile account, etc, if he knows that in a capital call, he also needs to wire his share of the capital he committed?). 

So that means we are now left with steps 4 through 6. As per your explanation, I would assume that the call on the GP's own capital commit will also be picked in the Accounting submenu "Cash Reconciliation", the accounting team will then validate the GP's transaction, the GP will be moved into the capital call pipeline "Funds Received", and finally the dollar value received from the GP will be shown in all "Capital Contributions" sections.

If the above is correct then I guess the answer to my question is that when a capital call to LPs is initiated, the GP gets roped in automatically to contribute his own share of the funds being called (as per his commit), and starting in step 4, gets handled the same way as any LP is… Can you please confirm this?
1

Answered by

Mike Suprovici

on

Your Fund Admin will take care of this. Right now, the back-office function is for Decile Partners. On a high level, depending on the legal structure, the GP will have its own capital account in hub and the accounting team reflects this. 

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