2. The Importance of Allocations and Allocation Rules

Mariya Stefanova, PEAI

In this chapter, we discuss:

Image Why it’s important to start with allocations and allocation rules

Image What an allocation rule is and why it is so important in private equity accounting

Image Types of allocation rules:

• By commitment (and closing date)

• By remaining commitment

• By drawn commitment

• By sharing percentages

Why different allocation rules are used

How inaccurate allocations ...

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