If the shares of an investor are redeemed, this can be recorded as a transfer of equity to the Treasury Account. The investor will retain access to their historical transaction information but will no longer be considered an active investor in the project.
Redemption vs Return of Capital:
A redemption will transfer all or some of the funds and units to Treasury. A Return of Capital will only return the funds to the Investor - retaining the Units in their Position.
Step 1: Navigate to the Project and then the Positions tab. Then click into the Position that you would like to redeem.
Step 2: Select New Transaction in the top-right and then Transfer from the drop-down options.
Step 3: Enter the details of the transaction:
Transfer to: Select Treasury Account (Redeem Equity)
Date: Specify the effective date
Equity Class: Ensure that the relevant Class is selected
Units: For a full redemption, enter the total units held (available in the bottom-left of the Position).
Transaction Amount: Select from the three available options to record the Transaction Amount.
NOTE: This will not be recorded as a Distribution. If you would like to facilitate the payment, you can do so in Step 5 below.
Step 4: Once complete, click Transfer Equity.
Once complete, the site may take a short period to update, then you will see a line item on the Position for Transfer to Treasury and the specific investment details in the bottom-left will be removed.
As of the specified effective date, the investor is no longer considered an active investor in the project and will not have access to content that is targeted to the active investor audience.
Step 5: To send the funds back to the investor:
Once the Transfer to Treasury is complete, click on the Transfer to Treasury line item and the Transfer Detail window will display.
Click the Send Payment button.
3. You are taken to the Distributions tab of the Project with the Redemption already set up for distribution:
4. Complete the distribution using the steps in this article: How to Run a Distribution
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