Basic Principals

As mentioned in How Canopy Trade Bookings Work, there are 3 main tables in Canopy. These tables are

1. Trade Blotter: All our PE transactions (like Commitment, Contribution, Distribution, Buy, Sell etc) will be booked into this table

2. Security Master: This contains a unique Canopy ticker and some other characteristics of each security in Canopy (including all the PE funds). We need to ensure that our PE funds are created correctly in the Security Master

3. Prices: Since PE funds are usually unlisted (and prices are not available from Bloomberg), we will need to manually upload the prices

During the booking process, we need to ensure that all 3 tables contain the correct data. All of Canopy Analytics takes it's input from only these 3 tables.

Booking Steps

For this tutorial we will be uploading transactions using Canopy UL 1.0. We will be creating bookings and transactions for the following 8 funds

• Advent International III Commitment

• KKR North America XI Commitment

• Permira VI Commitment

• Platinum Equity V Commitment

• Permira VII Commitment

• Silver Lake Partners V Commitment

• TPG Asia Capital VI Commitment

• Mayfair Equity Partners II Commitment

Step 1: Create Securities in Security Master

Assuming that these are funds that do not already exist in Canopy's security master, the first step is to create the securities. This can be done using Engine's browser interface, but it might easier to do so using Canopy UL 1.0.

Canopy books Commitment as a separate Security

Canopy considers 'Commitment to Invest' as a separate contract, compared to the actual investment contract itself.

This is to allow for edge cases where we did not have a 1:1 mapping between Commitment and Investment. For example there could be a case where the Investor committed to invest USD 1mm, however invested only USD 250k and then transferred this commitment to someone else (who paid a premium of USD 50k for it)

Booking Commitment as a separate Security allows Canopy to capture these edge cases as well

For each fund, we need to create two securities

1. 'Commitment' Security: This captures the commitment made to invest in the fund

2. 'Investment' Security: This captures all the actual transactions (contribution, distribution etc) made into the fund

Step 1.1: Create Commitment Securities

In case we are creating these securities via Canopy UL 1.0, the upload file will look like this CreateSecurityFund Canopy UL 1.0 Excel file

Engine will process this upload file and then let you download the tickers created. For us the following tickers were created.

Step 1.2: Create Investment Securities

Canopy follows a convention that Investment securities of Funds are of the format CC_ + Commitment Ticker. So for our funds we created the following tickers for the Investment securities

Step 2: Create Child and Currency Accounts

We decided to book each PE fund into a seperate child account. Therefore we need to create the child accounts and also one currency account in each child account (because transactions can only be booked into a currency account)

We created the following Child Accounts and Currency Accounts

Step 3: Upload Transactions

Currently a Commitment Transaction is booked as a Purchase at price = 0 (this is a workaround which we will be fixing in a future release)

You can see the attached Sample Upload File

Step 4: Upload Prices

Please remember to adjust up the price of each fund every time you book a Contribution. Otherwise Canopy will assume that the price did not change after the Contribution (and will show a loss equal to the contributed amount)

Canopy UL 1.0 Create Price Excel file is here

After this process, trigger the Analytics Calculation (from either Visualizer or Excel Add-in)

Review the Dashboards

Dashboard showing calculation results of the Transactions loaded above

Some other dashboards made from the same data can be seen on our how it works site