Abstract: THE IMPACT OF FUND ACCOUNTING FOR PRIVATE EQUITY AND VENTURE CAPITAL FUNDS
This research aims to: (1) evaluate the unique accounting requirements of private equity and venture capital funds; (2) assess the impact of accurate accounting practices on fund performance and investor confidence; and (3) identify the challenges in valuing illiquid and complex assets. A survey design was selected to gather insights from a broad range of industry professionals. Using Taro Yamane's formula, a sample size of 300 fund accountants and investment managers from Lagos, Nigeria, was derived to ensure statistical validity. The case study focuses on a prominent private equity firm in Lagos to illustrate practical challenges and solutions. A reliability coefficient score of 0.84 indicates the reliability of the survey instrument. Findings suggest that precise accounting practices are critical for valuing complex assets, maintaining investor trust, and optimizing fund performance. The study recommends enhancing accounting standards for private equity and venture capital, increasing the use of valuation experts, and adopting advanced financial modeling techniques to improve the accuracy and reliability of financial reporting.
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