Enables accounting of sub-partnerships investing in illiquid assets through carve out transactions
Automatic carve out facility exists to transfer funds from the liquid pool to create a side pocket and to do follow up investments by selecting all or some investors
On partial or full realization of side pockets capital moves back to the liquid pool
Facility exists for investors to be in the liquid pool with zero book capital and have investments in the side pockets. Separate reserve account is maintained for these investors at the liquid pool level.
Separate accounting is maintained for each side pocket with facilities to transfer book income and all fees to the parent tranche in the liquid pool
Facility exists to calculate accrued performance fees at the side pocket level and delay crystallization until realization of the side pockets
Side Pocket allocation can be done based on cost, commitment or book capital