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:

Preferred Return

Internal Rate of Return

Return of Capital

Pro-Rata

Annualized Return

Cumulative Return

Total Return

Management Fee

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.

Next Steps - How to Run a Distribution

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