What is the difference between PE and Hedge fund accounting?

Question

Accepted Answer

PE accounting focuses on long-term investments in private companies, while hedge fund accounting deals with short-term investments in public markets.

PE accounting involves valuing illiquid assets based on fair value, while hedge fund accounting focuses on marking-to-market liquid assets.
PE funds typically have longer investment horizons and less frequent valuations compared to hedge funds.
PE funds often use capital calls and distributions, while hedge funds may have daily liquidity for investors.
PE accounting may involve complex structures like SPVs and waterfall calculations, while hedge fund accounting is more straightforward.
PE funds may have carried interest and management fees, while hedge funds typically charge performance fees.

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