Our contribution to streamlining your fund formation process is multifaceted. We possess a comprehensive understanding of the entire fund formation process and its ongoing operational procedures. This includes close collaboration with fund lawyers, conducting detailed discussions on various waterfall and distribution structures, and providing calculation demonstrations to assist GPs in making informed decisions.

Indeed, our services span the entire lifecycle of a PEVC fund. This includes comprehensive support from the initial fund onboarding phase, encompassing LP subscription management, KYC/AML checks, and capital call issuance. We continue to assist throughout the fund's existence, covering fund valuation procedures, annual financial statements, annual audits, FATCA/CRS reporting, and offering support for K1 and PFIC reporting when necessary. Our commitment is to provide end-to-end support for the seamless management of your PEVC fund throughout its term.

Our client funds are primarily located in renowned fund jurisdictions, including the Cayman Islands, the British Virgin Islands (BVI), Hong Kong, Singapore, and the United States.

We specialize in servicing a diverse range of Limited Partners (LPs). This includes High Net Worth Individuals (HNWIs), family offices, private companies, and publicly listed companies. We also cater to institutional investors such as fund of funds and financial institutions. Our expertise extends to handling various investor legal structures, including trusts, foundations, limited companies, and investment funds, ensuring that we can effectively meet the unique needs of a wide spectrum of LPs.

Depending on your preferred arrangement, our team may have limited, pre-approved, authorized access to your bank account for online electronic transfers and/or authorization to view all banking transfers and download relevant bank statements for fund accounting purposes. Your control and discretion over this access will be maintained as per your specific instructions and requirements.

Our reporting standards for generating statements to Limited Partners (LPs) depend on the preference of the General Partner (GP) and LPs. We are well-versed in accommodating various reporting standards, including International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (USDGAAP), to align with the specific requirements of our clients.

Our utilization of industry standard fund administraion system, combined with our in-house program ensures the production of reports that adhere to produce ILPA standard reports including fund Nav pack, quarterly financial statements, capital calls, contribution confirmation, capital account statement, annual financial statements. We also assist with our client on preparation of the GP’s quarterly report.

We accommodate both whole fund distributions and deal-by-deal distribution models. Additionally, we provide support for carried interest catch-up calculations, ensuring that our clients have the freedom to choose the distribution approach that best aligns with their fund's structure and goals.

Subsequent closings, which are commonly observed in the Private Equity and Venture Capital industry, especially for blind pool funds, are carefully managed by our team. We ensure the rebalancing of all Limited Partner (LP) interests in accordance with the terms outlined in the Limited Partnership Agreement (LPA). This meticulous approach guarantees that LP interests are accurately adjusted to reflect subsequent closings and maintain alignment with the fund's evolving structure and capital inflows.

Precision employs a streamlined procedure for gathering capital call information. Our process includes rigorous verification of all data and information before it is input into our system to generate the capital call notice. When all aspects proceed smoothly, we can typically issue the capital call notice on the same day that the request is received, ensuring a swift and efficient process for our clients.

Our capital call notifications adhere to ILPA (Institutional Limited Partners Association) standards and typically encompass the following key details:

Beginning NAV: The Net Asset Value at the start of the specified period.

Contribution: The amount being called from Limited Partners.

Distribution: Any distributions made during the period.

Net Profit & Loss: The net result of gains and losses for the period.

Ending NAV: The Net Asset Value at the end of the period.

Carried Interest: The amount of carried interest allocated.

Ending NAV after Carried Interest: The Net Asset Value after accounting for carried interest.

Commitment: The total commitment of Limited Partners to the fund.

These details are crucial for transparently communicating the financial status of the fund and the specific capital call requirements to Limited Partners.

A capital account statement provided by Precision typically includes detailed information regarding the capital contributions, withdrawals, and changes in the capital accounts of Limited Partners (LPs) or investors in a fund. Specific information often incorporated in such statements includes:

LP Name and Contact Information: Identification of the Limited Partner, including their contact details.

Capital Commitment: The total capital commitment made by the LP to the fund.

Beginning Capital Balance: The initial capital balance at the beginning of the reporting period.

Capital Contributions: The amount of capital contributed by the LP during the reporting period, including any additional contributions or commitments.

Capital Distributions: Any distributions made to the LP during the reporting period, including profits, returns of capital, and other disbursements.

Capital Calls: Details of any capital calls made to the LP during the period, including the amount, date, and purpose of the call.

Investment Activity: Information about investments made on behalf of the LP during the period, including purchases, sales, and valuation changes.

Ending Capital Balance: The closing balance of the LP's capital account at the end of the reporting period.

Accumulated Profits/Losses: The net profit or loss realized by the LP during the period, including any carried interest or performance fees.

Management Fees: Details of any management fees charged to the LP's account during the period.

Carried Interest: Information about any carried interest or performance fees allocated to the LP.

Other Adjustments: Any other adjustments or transactions affecting the LP's capital account.

Total Rate of Return: The rate of return on the LP's capital account during the period.

Notes and Comments: Additional information or comments that may be relevant to the LP's account or investment activity.

The issuance frequency of capital account statements by Precision is typically determined in accordance with the Limited Partnership Agreement (LPA) requirements. This approach offers flexibility to align with the specific terms set out in the LPA. However, it's worth noting that the market standard practice is to provide capital account statements on a quarterly basis.

Recognizing the importance of efficient and effective communication with LPs, we collaborate closely with General Partners (GPs) to streamline this process. Our experienced team is well-versed in communicating with various types of LPs, including High Net Worth Individuals (HNWIs) and institutional investors. We prioritize clear and quality communication to ensure that subscription and KYC requirements are efficiently conveyed and addressed, fostering a smooth and transparent interaction with LPs.

Precision collaborates closely with our tax expert partners in the United States to ensure comprehensive tax reporting for investors subject to US taxation. This includes providing K1 and PFIC reporting, as well as appointing a tax representative to facilitate communication with Limited Partners (LPs). Our team possesses extensive experience in managing US tax matters and works in conjunction with our strategic partners in the US to ensure that tax reporting obligations are met effectively and efficiently.

Precision's services provide several distinct advantages over relying on an internal accounting team: