How to Download & Read a Preferred Return Schedule

Pulling a Preferred Return Schedule

1. To pull a Preferred Return Schedule for an investor within a class, you must first ensure you have a Preferred Return Template added to a new or existing waterfall in the entity.

2. Be sure to select the checkbox to 'Use this rule to drive Unpaid Preferred Return calculations' and Save Rule, as this will allow the download from within the Cap Table. Note: this can only be enabled for one waterfall per entity, so if this cannot be selected you may need to uncheck the box in an existing waterfall first.

3. Next, navigate into the appropriate Cap Table, and select the drop-down arrow next to an investor's legal name. Select Download Preferred Return Schedule:

Reading the Preferred Return Schedule:

Front and center will show the project name, followed by the investor's legal name and what the schedule is displaying (Contributed Capital and Preferred Return Calcs). In addition, to the left, we will display the Preferred Return Rate, Days Methodology (day count), Compounding Frequency (optional), and Compounding Start Date (optional):

The left side of the Preferred Return Schedule will show all contributions to date, along with any transactional periods - updating annually if no payments have been made. Here, we can see that ta $500,000 was made on 01/01/2024. The 'Days in Period' column indicates that 366 days went by without a payment. Please note Leap Year taking into consideration because of the Actual/Actual day count that was selected in the project. The class rate of 7% is broken down into a daily rate, and displayed on the Accrued Pref column. Compounding (optional) will also be included in the adjacent column.

The remaining side of the Preferred Return Schedule has a Total column for the amount of unpaid preferred return plus compounding (if any). The Pref Payments column will show a negative amount ((6,241.00)) according to the amount of preferred return that was calculated for a given distribution batch period. This is deducted from the last calculated Cumulative Unpaid Pref total (35,095.89) in the next column and displays the updated Cumulative Unpaid Pref total on the same line (28,854.89). Additional calculation periods will be captured and added to this amount from the previous Total column (7,767.12), giving a new Cumulative Unpaid Pref total for the date on which the schedule is pulled (last line item)

Note: Any return of Capital transactions will be reflected in the Capital Account (Payments) column, with a reflection of the total Ending Capital Balance when the transaction is made in IMS.

Pro Tip: Not seeing calculated values on the Cumulative Unpaid Pref column? Be sure to select "Enable Editing" in the Excel header to generate the IMS calculations into the file.