A Distribution Plan in InvestNext allows you to define a custom waterfall for each project. When you are ready to distribute funds to investors, whether it be a quarterly preferred return payment or a profit share after exiting a project, a Distribution Plan will programmatically allocate the funds to your investors, removing any manual calculation or excel work from the process.
The steps below outline the process to create a new Distribution Plan.
Step 1: Navigate to the relevant Project, select Distributions > Distribution Plans.
Step 2: Select New Distribution Plan, add an identifying name and Create Plan.
Step 3: Select a Remainder Allocation Method, which will determine how the system will handle the allocation of an uneven amount of change. For example, if there are 7 cents remaining to allocate between 15 investors.
Step 4: Select Add Hurdle > add an identifying name and select the relevant Hurdle Type.
To learn more about a waterfall hurdle type, please select the relevant option below:
Step 5: Select the ellipsis (three vertical dots) beside the hurdle name to customize the hurdle details.
Step 6: Repeat Steps 4 & 5 as necessary.
If your project has multiple types of distributions, simply create additional Distribution Plans using the same process and you will be prompted to select the relevant option when creating a distribution.