How to Track In-Kind Distributions as an LP

How to track in-kind distributions is an event ledger for securities a GP sends instead of cash, or with cash. Raziel's private equity distribution tracking page is the cash-in date and carry. Raziel's recallable distribution tracking page is the recallable flag. This page is the stock row. Copy the ILPA 2011 stock-distribution notice: company, security, ticker, CUSIP, shares, historical cost, current value, basis for value, settlement location, sale restrictions, and settlement date.

This is not legal, tax, or investment advice. Raziel does not provide it. Copy the notice and the limited partnership agreement. Do not invent a valuation method or a tax rate.

What an in-kind distribution is (and is not)

ILPA's glossary: distributions are cash and/or securities paid out to limited partners from the partnership. There is no standalone in-kind headword. An in-kind (stock) distribution is the securities slice of a distribution you already know how to log as cash.

ILPA's 2011 Capital Call and Distribution Notice Best Practices built the templates so a GP can detail both cash and stock. The 2011 sample cover letter puts stock on the same notice as a cash sale and says the stock value does not affect the cash amounts listed above. Split them. One cash row. One stock row. A single distributions-to-date cell hides shares you still hold.

The 2011 transaction types already name the stock line. Dist: Realized Gain - Stock. Dist: Realized Loss - Stock. Dist: Return of Capital - Stock (cost basis of a stock distribution). Copy the type on the notice. Do not rewrite it as a wire.

Katten on the September 2025 Capital Call and Distribution Template: ILPA still tells GPs what the narrative cover letters should include for stock distributions. The 2025 Suggested Guidance PDF lists no stock, ticker, CUSIP, or shares fields. Do not invent a v2.0 stock column set. Keep the 2011 fields.

Copy the 2011 stock-notice columns

Open one row per security, per notice, per fund. ILPA's 2011 cover-letter guidelines for stock distributions ask the GP to print the items below. Template field 2.3 is Due Date (or Settlement Date). Post the row on settlement date, not the week the PDF arrived.

• Company. Name of the company or investment.

• Security, ticker, CUSIP. Security name plus ticker and CUSIP as printed.

• Shares. Shares distributed to you. Shares distributed to the GP for carried interest, and the supporting calculation, stay on the GP line.

• Historical cost. Historical cost of shares from the notice. That is a lot note, not tax advice. Do not compute a gain, a holding period, or a rate.

• Current value. Current value of shares as the GP reported it.

• Basis for value. Basis for value, as defined in the LPA. Copy the citation. The 2011 sample letter points to an LPA section. That is the GP showing its work, not a license to pick a close, a VWAP, or a 10-day average. If the notice is silent, record that it was silent.

• Settlement location. Where the shares settle, plus the contact printed for that location.

• Sale restrictions. Restrictions on sale of the shares, attached to the row.

• Settlement date. Due Date (or Settlement Date) on the template.

Attach the notice. A mixed cash-plus-stock notice is two rows or a split.

DPI at distribution. Later marks are yours.

ILPA's glossary already counts securities as distributions. Its Distributed to Paid in (DPI) entry is the ratio of money distributed to limited partners by the fund, relative to contributions. That entry cites GIPS for recallable distributions in the numerator and reinvested capital in the denominator. It does not name an in-kind valuation method. Do not invent an ILPA DPI-in-kind formula.

GIPS 2010 private equity provision 7.A.4: stock distributions must be included as cash flows and must be valued at the time of distribution. GIPS 7.A.23 then presents since-inception distributions and DPI. GIPS 2020 for asset owners (22.A.23.c) keeps the rule: include stock distributions as external cash flows and value them at the time of distribution. That is GIPS wording, not an ILPA method to backfill onto the glossary.

On settlement date, log the GP-reported current value as the distribution amount for that stock row. The shares leave fund residual value. They are now your holding. Later marks do not rewrite the row. A later sale is your sale, not a second fund distribution. Leaving the shares in fund RVPI double-counts. Waiting until you sell delays a cash flow GIPS already dated at distribution. How the columns read after the row is posted is Raziel's TVPI vs DPI vs RVPI page.

Add a still-held versus sold status next to the notice columns. Empty until you sell. Do not overwrite the original row. Add a sale row on your own book.

ILPA's Reporting Template definitions put in-kind transactions (for example, stock distributions) inside Non-Cash Contributions and Distributions and inside Distributions - Cash and Non-Cash. The quarterly pack rolls that value into the cash/non-cash total. Sum event rows to that line. The capital account statement is not a substitute for the notice.

When the ledger holds

The row holds if the nine 2011 fields are copied, mixed cash is split, GP-reported value is frozen at settlement, and still-held versus sold is a later status. It fails when you net the shares into a cash-in cell, mark them to last night's close inside DPI, or treat a later sale as another GP distribution.

Raziel's alternative-asset dashboard is the investment record those events should sit on: cash dates, documents, IRR and MOIC, AI ingest of the pack, capital calls, wallets and bank linking. Raziel does not issue distribution notices and does not give tax advice. Copy the ticker, the share count, and the LPA basis.