The University of Chicago

Financial Services

  

1014 Accounting for Investments in Venture Capital Limited Partnerships

Subject Area: Accounting
Responsible Office: Financial Services
Sponsor: Associate Vice President for Finance
Originally Issued: February 1993
Revised: January 2004, January 2010
Refer Questions To: James Ribikawskis, 773-702-3690

Purpose: To properly account for investments in venture capital limited partnerships.

Policy

  1. Financial Services will record investments in venture capital limited partnerships at fair value.
  2. The Investment Office will review and establish market values for venture capital limited partnership investments on a quarterly basis generally one quarter in arrears based on financial and other information received from the partnership.
  3. The Investment Office will maintain a log of all K-1’s received from Venture Capital Limited Partnerships and forward the K-1’s to Financial Services for preparation of the University Form 990-T tax return.

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