Capital Account Statement

Definition

Capital account statements track each LP’s economic position: paid-in capital, distributions, allocation of profits/losses, management fees and expenses, and ending NAV. They are typically issued quarterly for private funds and are essential for LP finance teams, auditors, and internal reporting. Allocator Context Institutions rely on capital account statements for portfolio accounting and governance reporting. Consistency, accuracy, and timeliness matter. Errors—especially around allocations, fee calculations, or NAV—damage trust and can trigger operational escalation. Decision Authority While not usually an IC decision factor at entry, reporting quality becomes decisive over time. Persistent reporting problems can influence re-up decisions and can lead to increased ODD scrutiny. Why It Matters for Fundraising Good reporting creates retention. If LP operations teams struggle with statements, that experience feeds back into future commitment decisions—even when investment performance is strong. Key Takeaways Core LP reporting artifact Accuracy and timeliness drive trust Operational errors create long-term fundraising drag Reporting quality affects re-ups