1. Using Joint Venture Management
  2. About Carried Interest Distributions

About Carried Interest Distributions

You can generate carried interest distributions for all transactions that were distributed for a carried interest agreement.

Carried interest distributions support the tracking of accumulated penalties and payout balances over time. This enables you to monitor when carried revenue fully offsets carried costs and penalties so that payout can be determined.

Carried interest distributions aren’t invoiced. You can review them in the Carried Interest Distributions work area or export them to a spreadsheet for reporting purposes. The work area and the additional details available through the Distribution ID link provide information about the carried interest agreement, stakeholders, carried percentages and amounts, penalties, payout balances, and related transaction details, including:

  • The amounts and percentages that consenting stakeholders carry for nonconsenting stakeholders

  • The nonconsenting stakeholder’s ownership percentage and distributed amounts

  • Carried interest ownership definition details

  • Source transaction, accounting, and account information, including access to the related subledger journal

  • Penalty details, including penalty amounts and payout balance IDs that you can use to review payout balances in the balances spreadsheet

  • Project information, if applicable

The following is an example of two carried interest distributions to show how carried amounts are distributed between consenting stakeholders for a nonconsenting stakeholder.

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  • Nonconsenting stakeholder SH_IP_02 has a source ownership percentage of 20%.

  • The nonconsenting stakeholder was originally responsible for $200, which is 20% of $1000.

  • The two distribution lines show the carried percentage and carried amount that each consenting stakeholder is carrying for the nonconsenting stakeholder.

    • Consenting stakeholder SH_CC_01 is carrying 40% of the nonconsenting stakeholder’s 20%. Therefore, the consenting stakeholder is carrying $80, which is 40% of $200.

    • Consenting stakeholder SH_IP_01 is carrying 60% of the nonconsenting stakeholder’s 20%. Therefore, the consenting stakeholder is carrying $120, which is 60% of $200.