In Context
Processing a subsequent closing in the system allows you to preview the required equalization, but does not run the equalization as capital activity so that the user can run the capital event when required. Once you've processed a subsequent closing in the system, you will be able to navigate to the Capital Activity tab anytime to run the required equalization, as described in this guide. This functionality will not be available if there isn't a related subsequent closing that has yet to be equalized
Step-by-Step
To process an Equalization, navigate to the Fund Family
Click Capital Activity
Click Run Capital Event. Within the pop-up window, select the investor notice date and due date. Note that:
The due date must be after or the same as the notice date
The notice date and due dates must be after the subsequent closing for which you are equalizing
The due date will drive the date as of which Catch-Up Interest is calculated
You may also add any notes related to the event here (this is optional)
Click Add Equalization
Note that the functionality for a standalone equalization is only enabled if a subsequent closing with new or upsized commitments has been finalized following the date of the last equalization
Scroll down to view the net event summary, which breaks down total capital movement, catch up amounts, catch up interest, and total cash movement by fund, class, and individual investor
For a detailed view, click View Equalization
The table is automatically grouped by fund, investor entity, commitment, and use. Expand the cells in the header column to view equalization details at each level. Scroll right to view a breakdown of historical capital events before and after each equalization, along with catch-up payments and catch-up interest
If processing a net event, you can run a capital call, distribution, and/or waterfall. Otherwise, you may:
Leave the event as a draft by clicking the back arrow in the top left corner. The event will automatically be saved as a draft and can be edited, completed, or deleted in the future (for more on this, see how to Edit a Draft Capital Event)
Delete the entire net event by clicking the three dots in the top right corner of the draft event page
Click Finalize Event to post the equalization
