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Manager Platform Guide - How are ownership percentages calculated for distribution payments?
Manager Platform Guide - How are ownership percentages calculated for distribution payments?

Distribution payment amounts are calculated based on contribution

Joni Reeves avatar
Written by Joni Reeves
Updated over 2 years ago

The Groundbreaker Platform makes it easy to manage your distributions. You will create a new distribution when it is time to distribute payments. Because all payments occur between legal entities, the distribution is managed via the investment entity and creates payments to investor accounts.

Groundbreaker calculates distribution payments using pro rata allocation based on ownership percentages. Even when your investment entity has more than one offering, the ownership percentages are based on each investor's contribution payment relative to the total invested in the investment entity.

This investment entity raised $81,444.44 through two offerings:

The $81,444.44 was contributed by five investors, and their ownership percentages are calculated and shown in the investor table.

For example, Trial Limited - shown 4th in the list above, contributed $20,000. His ownership percentage is $20,000/$81,444,44 = 24.56%

These ownership percentages are used when calculating the pro rata amounts for distribution payments.

Using the same example, for this distribution of $10,000 - Trial Limited's distribution payment is calculated to be $2,455.66 ($10,000 x 24.56%).

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