Performance and reporting

Capital account statement

Also called Partner's capital statement, PCAP.

Definition

A capital account statement is the periodic report, usually quarterly, that shows a single limited partner the movement in their capital account over the period: opening balance, contributions, allocated income, gains and losses, management fees and expenses, distributions, and closing balance, alongside their commitment and unfunded commitment.

Updated October 9, 2026Checked against our editorial standards

Example

An LP's statement for the quarter opens at $1,400,000. Contributions in the quarter are $250,000. The fund marks up a position and allocates the LP $90,000 of unrealised gain. The LP's share of the management fee is $12,500 and of partnership expenses $3,000. A distribution of $100,000 goes out in the last week. Closing balance: 1,400,000 + 250,000 + 90,000 less 12,500 less 3,000 less 100,000, or $1,624,500. Below the movement table: commitment $5,000,000, cumulative contributions $2,000,000, unfunded commitment $3,000,000.

Confused with

Capital account. The account is the balance. The statement is the document that reports its movement for a period.

Schedule K-1. The K-1 is annual, prepared on a tax basis and excludes unrealised gains. The statement is quarterly and on the fund's accounting basis, so the two closing balances differ.

ILPA Reporting Template. The template breaks out the fee, expense and carry lines in more detail. The statement is the summary of the account.

In practice

The sum of every LP's closing balance must equal partners' capital in the fund's financial statements, and the auditor ties the two out. LPs compare the closing balance with their own records, so an allocation error on one statement comes back as a query within days of delivery. The LPA sets the delivery deadline, and most are drafted around ILPA's framework.

Related terms

Capital accountA capital account is the running balance of a single partner's economic interest in a fund: contributions in, allocations of income, gains and losses, less distributions out.
Unfunded commitmentUnfunded commitment is the portion of a limited partner's capital commitment that the fund has not yet called, calculated as total commitment less contributions to date plus any distributions the LPA makes recallable, and represents the LP's remaining obligation to fund capital calls.
ILPA Reporting TemplateThe ILPA Reporting Template is a standardised quarterly schedule, published by the Institutional Limited Partners Association, in which a fund breaks out management fees, partnership expenses, fee offsets and carried interest for each limited partner, quarter to date, year to date and since inception.
Schedule K-1Schedule K-1 (Form 1065) is the annual IRS form on which a partnership, including a fund organised as a limited partnership, reports to each partner their share of the partnership's income, gains, losses, deductions and credits for the tax year, so that the partner can report those items on their own return.