Why the PE fund Sub Line adjustments work

AUXILIA Mathematica · Intermediate ·📰 AI News & Updates ·1y ago

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By treating increases in a fund’s subscription line of credit (Sub Line) balance as additional Contributions or Capital Calls and treating reductions in the Sub Line balance as additional returns of Contributions, the analyst moves “net” cash flows forward, so that they more closely match the timing of “gross” portfolio company investments. Entire video and Microsoft Excel templates available at: https://auxiliamath.com/video/nr105/

Original Description

By treating increases in a fund’s subscription line of credit (Sub Line) balance as additional Contributions or Capital Calls and treating reductions in the Sub Line balance as additional returns of Contributions, the analyst moves “net” cash flows forward, so that they more closely match the timing of “gross” portfolio company investments. Entire video and Microsoft Excel templates available at: https://auxiliamath.com/video/nr105/

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