Distribution Notice

A complete distribution notice template — LP-specific amounts, waterfall breakdown, tax characterization, and wiring instructions.

What This Template Covers

A distribution notice communicates to each LP the amount they will receive, how that amount was calculated, and the tax characterization of the distribution. It must comply with fund agreement requirements, reflect the fund's waterfall structure accurately, and provide the documentation LPs need for their own tax and accounting records.

This template covers all required components of an ILPA-compliant distribution notice, including waterfall calculation detail and tax withholding disclosure.

Notice Components

LP Distribution Amount

LP-specific distribution amount, broken down by return of capital, preferred return, GP catch-up, and carried interest components.

Waterfall Summary

Fund-level waterfall calculation showing total proceeds, distribution tier calculations, GP carry, and net LP distributions.

Tax Characterization

Preliminary tax characterization of distribution components — ordinary income, capital gain, return of capital — to assist LP tax planning.

Tax Withholding

Any applicable withholding amounts for non-US LPs, FIRPTA withholding for real property dispositions, and backup withholding.

Investment Context

Portfolio company name, transaction type (partial exit, full exit, recapitalization, dividend), and brief transaction description.

Wire Confirmation

LP bank account on file, expected wire date, and instructions for reporting any account changes before the funding date.

How Equiforte Generates Distribution Notices

Equiforte calculates LP-specific distribution amounts by running the fund's waterfall model against validated transaction proceeds and LP commitment records. Each LP's notice reflects their specific allocation, carry tier, and any distribution priority provisions in their side letter.

Tax characterization fields are pre-populated based on the transaction structure and asset holding period, subject to final review by your tax advisor before distribution.