Transfer Investments (100%, 50/50 Split, and Partial Transfers)
100% Transfer
Step-by-Step
- Locate the investment that you would like to transfer and click on the arrow to the left of the investor’s name. Choose Transfer Investment from the drop-down menu.
- The system displays an alert to remind you that the effective date of the transfer MUST fall after the end date of the last distribution to the existing investor to ensure distribution calculations are not affected
- The system displays an alert to remind you that the effective date of the transfer MUST fall after the end date of the last distribution to the existing investor to ensure distribution calculations are not affected
- Enter the transfer date and effective date. Then choose your recipient.
- You have the option to choose how to handle the distribution. In this example, I’d like Allison to receive the entire next distribution on this investment. If the transfer occurred in the middle of a period, you may choose to have the funds go to John and Allison pro rata according to how long they each owned the investment.
- You have the option to choose how to handle the distribution. In this example, I’d like Allison to receive the entire next distribution on this investment. If the transfer occurred in the middle of a period, you may choose to have the funds go to John and Allison pro rata according to how long they each owned the investment.
- Click on the Generate Preview button. This preview shows the original ownership of each investor participating in the investment, the change, and their new ownership along with the note that displays in the investor activity log.
- The yellow box shows you a preview of how the investment will be represented in the cap table. The options are the original investment amount, or the investment net any returns of capital. To change this, click on Platform Preferences. Note that making this change will require you to enter your transfer over again.
- The yellow box shows you a preview of how the investment will be represented in the cap table. The options are the original investment amount, or the investment net any returns of capital. To change this, click on Platform Preferences. Note that making this change will require you to enter your transfer over again.
- Now that you have entered my information, hit save. We can see the transfer represented on the cap table with the two reversed arrows the the right of the investor's name.
50/50 Split Transfer
Step-by-Step
- Just like before, start by locating the investment that you want to make the transfer from, and use the dropdown arrow to the left of their name. Select "Transfer Investment."
- Enter the Transfer Date and the Effective Date of the transfer.
- Select Recipients for the transfer. Then select Transfer Type to the right of the Recipients box, and enter the amount as well. In this case, it would be 50%, as we are looking at a 50/50 split.
- Click on the blue plus sign icon on the far right side of the first recipient.
- This will add a new recipient line so that you may add the other recipient to receive the second half of the split.
- Fill out the second recipient line, just as you did with the first.
- Click the Generate Preview button.
- This will generate a preview of what will happen when the transfer is made, so that you may review the information that you included with the transfer.
- Lastly, click Save and the transfer will be complete!
- You can see that this investment is complete in the cap table if you are able to see the two reverse arrows icon to the right of the investors name.
Transferring Partial Investments
Step-by-Step
- Just like before, start by locating the investment that you want to make the transfer from, and use the dropdown arrow to the left of their name. Select "Transfer Investment."
- Enter the Transfer Date and the Effective Date of the transfer.
- Select Recipients for the transfer. Then select Transfer Type to the right of the Recipients box, and enter the amount as well.
- This time, it can be any amount that is desired, as we are not doing a 50/50 split here.
- If you need to add more transfer recipients:
- Click on the blue plus sign icon on the far right side of the first recipient.
- This will add a new recipient line so that you may add the other recipient to receive the second half of the split.
- Fill out the second recipient line, just as you did with the first.
- Click on the blue plus sign icon on the far right side of the first recipient.
- Click the Generate Preview button.
-
-
- This will generate a preview of what will happen when the transfer is made, so that you may review the information that you included with the transfer.
-
-
- Lastly, click Save and the transfer will be complete!
- You can see that this investment is complete in the cap table if you are able to see the two reverse arrows icon to the right of the investors name.
How To Revert (Delete) a Transfer
Step-by-Step
- Locate the transfer that you would like to revert and click on the arrow to the left of the investor’s name. Choose Delete Investment from the drop-down menu.
- Note: If there are distributions associated with the transfer, or of the transfer is for less than 100%, the system displays an alert to remind you and will not allow you to proceed. Please reach out to the Support Team for further assistance.
- A window will appear asking "Are you sure you want to delete this investment?" letting you know that this is a permanent deletion. Once you are sure, select the "Delete" button.
- The transfer will now be deleted and removed from the Cap Table, placing the investment back with the original investor, the Transferor.
- To ensure accuracy, you can search the Cap Table for the Transferee's name and, unless they hold additional investments, they will no longer appear in the Cap Table.