Citco Senior Fund Accountant Interview Questions, Process, and Tips

Q1. What is private equity , difference between private equity and hedge funds
Ans. 
Private equity is investing in private companies with the aim of generating high returns. Hedge funds are pools of capital from accredited individuals.
• Private equity firms invest in private companies and aim to generate high returns by improving the company's operations and financials.

• Hedge funds are pools of capital from accredited individuals and invest in a variety of assets, including stocks, bonds, and derivatives...read more
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Q2. Journal entries relating to fund accounting
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Q3. What is high water mark
Ans. 
High water mark is the highest peak in the value of an investment fund.
• It is the highest point that an investment fund has reached in terms of value.

• It is used to calculate the performance fees of fund managers.

• If the fund's value drops below the high water mark, the manager does not receive performance fees until the value exceeds the high water mark again.
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Q4. What is performance fee and carry interest
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Performance fee is a fee charged by investment managers based on the performance of the fund. Carry interest is a share of profits earned by investment managers.
• Performance fee is usually a percentage of the fund's profits above a certain benchmark

• Carry interest is a percentage of the profits earned by the investment manager above a certain hurdle rate

• Performance fee and carry interest are common in private equity and ...read more
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Q1. Hedge fund structure
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Q2. Journal entries for accrual
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Accrual journal entries are used to recognize revenue or expenses that have been incurred but not yet recorded in the financial statements.
• Accrual journal entries involve debiting an expense account and crediting a liability account for expenses incurred but not yet paid

• Accrual journal entries involve debiting a revenue account and crediting an accounts receivable account for revenue earned but not yet received

• Accrual ...read more
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Q1. Number of years I have experience in
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Q2. Expected salary
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Interviewed by a panel of 4.
- Technical questions - what I know about private equity, Waterfall methodology, capital call notices, journal entries on unrealized gain on sale/sale of investment and recording of realized gain.
- what my usual day consists of and what a NAV pack consisted of
- how I contributed in process improvements, whether I work better in small number of groups or large number of groups, which platforms I've used, hard situation I overcame, if I have experience with open ended funds or close ended fund, if I've experience with regards to partnership agreements.

Q1. Tell me about you
Ans. 
I am a detail-oriented and experienced fund accountant with a strong background in financial reporting and analysis.
• I have X years of experience in fund accounting

• I am proficient in financial reporting and analysis

• I have a strong attention to detail and accuracy

• I am skilled in using accounting software such as X and Y

• I have successfully managed complex fund structures and reconciliations
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Q1. Waterfall, golden rules, different types of fees and calculations, journal entries,
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Q1. Journal entry of stock purchased and it's impact. CFD, CDS, options, future, mgmt fee, performance fee calculation, hurdle rate and HWM
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Q2. If you missed to Book the Trade, will that have impact in your current month NAV?
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Q3. Journal entry for prepaid expenses, Subscription and redemptions
Ans. 
Journal entries for prepaid expenses, subscriptions, and redemptions
• Prepaid expenses: Debit Prepaid Expense account, Credit Cash/Bank account

• Subscriptions: Debit Subscription Revenue account, Credit Cash/Bank account

• Redemptions: Debit Cash/Bank account, Credit Redemption account
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