How to use the Distribution Scenario Modeling tool
The Distribution Scenario Modeling tool is a new feature that allows you to model a hypothetical fund distribution. You can use it to see how proceeds from a potential investment exit would be allocated to all partners based on your fund's specific waterfall configuration.
Steps to use the scenario modeling tool
From your fund's dashboard, navigate to the Investments tab. Click Distribution Modeling located above the investments table.
Select the investment(s) you wish to model by checking the box next to the company name. Click Next.
Enter the hypothetical proceeds from the exit. You can edit either the Total Realized Value or the Value/Share. The other field will update automatically. Click Next.
Set the Distribution Date for the model. Under Adjustments, you can enter values that will be subtracted from the total proceeds before the distribution, such as an Amount to recycle. Click Next.
Review waterfall and click Next.
View calculation results. To see how a specific partner's distribution was calculated, click the arrow next to their name to view the ITD Breakdown by Step. This shows the amounts allocated to Return of Capital, Preferred Return, GP Catch Up, and Carry