Add a Stakeholder Group

Add a stakeholder group to specify the percentage of a nonconsenting stakeholder’s interest that each consenting stakeholder is carrying.

You identify the following details in a stakeholder group according to the terms in your carried interest agreement:

• Effective dates, which must be within the carried interest agreement’s date range. You can have multiple stakeholder groups with different effective dates. But you must have at least one stakeholder group with a start date that matches the agreement start date.
• The nonconsenting stakeholder whose interest or ownership percentage is being carried.
• The consenting stakeholder and the percentage that they are carrying of the nonconsenting stakeholder’s interest.

The stakeholders in the stakeholder group must be active stakeholders in the joint venture.

The total of the percentages that the consenting stakeholders carry for a nonconsenting stakeholder must equal 100%. You can enter a percentage with up to 5 decimal places.

The details in a stakeholder group are used to generate one or more carried interest ownership definitions, as described in the next task. You can add multiple stakeholder groups and generate carried interest ownership definitions for different groups.

The setup supports rounding. The stakeholder identified as the rounding partner in the source ownership definition is automatically identified as the rounding partner in the carried interest ownership definition. If the original rounding partner becomes a nonconsenting stakeholder, or if there isn’t a rounding partner designation, the application automatically designates the internal partner with the highest percentage as the rounding partner. If there is no internal partner, it designates the external partner with the highest percentage as the rounding partner.

To add a stakeholder group:

1. In the Stakeholder Groups area, click Add.
2. Enter a name and description for the stakeholder group.
3. Enter an effective start and end date.

   You must have at least one stakeholder group with a start date that matches the agreement start date.

4. Click Submit at the end of the row, and then click Save.
5. To add the stakeholder details, click the name of the stakeholder group or Edit Details, and then perform these steps:
   1. On Edit Stakeholder Group, click Add to add a row for each stakeholder that is carrying a percentage of ownership for a nonconsenting stakeholder.
   2. In each row, enter the following details:
      • The nonconsenting stakeholder whose interest or ownership percentage is being carried
      • The consenting stakeholder and the percentage of the nonconsenting ownership percentage that the consenting stakeholder is carrying.

      Make sure that the total of the percentages equals 100%.

   3. If you want carried interest journals created for a consenting stakeholder, click the Create Journals check box and then use one of the following methods to specify the carried interest account:
      • Place your cursor in the field to select each segment value to identify the account.
      • Click the search icon in the field and use the filters to identify the segment values.
   4. Click Submit at the end of a row to add it.
6. Click Save.