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PE funds do not themselves pay out dividends. Similar to mutual funds, they pay out distributions. Most PE funds do specify what was the source of the cash being distributed: was it gains from the underlying portfolio of investments, income from those investments, return of capital etc. However, if ...

Thanks Marek,

So in essence:
When a distribution is received from a fund:
Dr. Cash
Cr. Investment in fund

All the value created under the fund would get recorded as part of fair value gains and losses which are recorded each quarter when updated nav is received.

It's one investment from the fund investor's perspective (investment in the fund).

Question is whether, due to the nature of the limited partnership which is how funds are structured, distributions received should be accounted using a lookthrough approach.

The funds themselves fair value all their investments since they qualify as investment entities under IFRS 10.

Continuing on the topic of distributions... PE funds also disclose other elements in the distribution (realized gains, interest income, dividends, ROC etc.). When these funds are being held at fair value, I have seen diversity in practice over recording and disclosure of these distributions: - Have ...