Step-by-Step
To process a distribution and waterfall, navigate to the Fund Family
Click Capital Activity
Click Run Capital Event. Within the pop-up window, select the investor notice date and due date. Note that the due date must be after or the same as the notice date. You may also add any notes related to the event here (this is optional)
Click Add Distribution
Select the transaction tag(s) for the distribution based on the source of the funds. Although not required, you have the option to link each use to an investment by making a selection from the Link to Investment dropdown (this might be especially helpful for reporting purposes). If it is a new investment, you must first create an investment in the Investments tab
If you would like add fee break(s) to your distribution, see Add Fee Break True-Ups to a Distribution for more detail
If you would like to add a management fee holdback(s) to your distribution, see Add Management Fee Holdbacks to a Distribution for more detail
Click the Enter amount cells
The Auto Allocate function allocates the amounts pro rata based on commitment amongst all the Fund Entities that are part of the Fund Family. This function applies mostly to Fund Families that have parallel funds. If the Fund Family contains a single, standalone Fund Entity, the Auto Allocate function becomes less relevant. The allocation can be overridden by unchecking the Auto Allocate box and entering user defined amounts for each Fund Entity
After clicking Continue to Investor Breakdown, you may review the distribution summary. Click on Finalize Distribution once the allocations have been reviewed
To run a waterfall, first confirm a distribution has already been entered, and select Add Waterfall
Review waterfall details at the Fund Level and Investor Level
At the Fund Level, you can view the waterfall distribution by tier, along with ITD distributions paid prior to and following the current distribution
You can also click on the Investor Level to view the current distribution by tier per investor entity and commitment, and then click on each investor name in the table to review individual waterfall details
Each tier of the waterfall in the Detailed Breakdown chart can be expanded to view fund-level calculations
To review a Preferred Return breakdown by Capital Event, click View Details next to the Preferred Return step
Review the Preferred Return breakdown. To return back to the Review Waterfall page, click the back arrow at the top left corner of the page
After you have reviewed the waterfall details, click the back arrow at the top left corner of the page to return to the Capital Event page
If processing a net event, you can run a capital call and/or equalization. Otherwise, you may:
Leave the event as a draft by clicking the back arrow in the top left corner. The event will automatically be saved as a draft and can be edited, completed, or deleted in the future (for more on this, see how to Edit a Draft Capital Event)
Delete the entire event by clicking the three dots in the top right corner of the draft event page
Click Finalize Event to post the distribution and waterfall
