Send distribution notices

By the end of this guide you'll have sent a distribution notice to your investors, letting them know what to expect before you finalize, with a chance to add your own message and attachments — and you'll know how to check that each recipient received it.

What a notice is for

A distribution notice tells each investor that a distribution has been issued and what their share looks like, before any money moves. It's the middle step of the distribution workflow: create the draft, send notices, then finalize. Notices are optional — you can finalize a distribution without sending one — but they give investors advance visibility and a window to add or update their payout bank account before you finalize.

Open the send notice flow

1. Open the holding's Distributions tab and select the draft distribution you want to send a notice for.
2. From the distribution's top actions, select Send Notice.
3. Review the readiness check that runs before the dialog lets you continue (covered next).

Clear the readiness check

Before you can send, Covercy One checks that the notice can actually reach your investors. Two things will stop a send and must be fixed first:

• An investor with no deliverable email address — every investor receiving a share needs a valid email on their contact record. The check tells you which allocations or positions are affected so you can add the missing address.
• An attachment that can't be found — if you've added a file that's no longer available, the send is blocked and the affected attachment is flagged. Remove or replace it and try again.

Check who will receive the notice

Recipients are worked out from the distribution's investor allocations and the contacts attached to them, not from your payment setup. A few rules decide the final recipient list, and they explain why the count you see may differ from the number of positions in the distribution:

• One email per investor, per share class — when an investor's stake is split across several positions in the same share class, those allocations are grouped into a single notice. The amounts and the per-hurdle breakdown are the sum of that investor's positions, so nobody receives duplicate notices just for holding several positions.
• Zero-amount allocations are left out — an investor whose gross and net are both zero isn't a notice recipient and isn't counted in the recipient total.
• Repeated email addresses are sent to once — if the same address comes up more than once for the same notice, it receives a single email.

Add a personal message and attachments

1. In the personal message area, write an opening message to your investors using the rich-text editor. This appears as your note near the top of each investor's email.
2. Add any attachments you want every recipient to receive with the notice — for example a cover letter or a distribution statement.
3. Review the email preview, which Covercy One builds from the distribution itself: the greeting, the holding and investing-entity introduction, the distribution details, bank-account details, and a link to the investor portal.
4. Read the preview as your investor will — it shows exactly what the investor receives, amounts included.

Send the notice

Confirm the send. Covercy One records the notice and then sends one email per investor in the background. Each investor's email shows their own amounts — a single section for a single-hurdle distribution, or a totals section plus a per-hurdle breakdown when the distribution has multiple hurdles. The subject line reads Distribution Notice for <Distribution Name>. The distribution's status moves to indicate the notice has been sent.

What your investors see

Every figure in the email is stated at your investor's own basis. The Gross Amount line is that investor's gross, and the statement reads straight down from there: gross, less any withheld taxes, plus any adjustments, equals the Net Amount they'll receive. No promote line appears anywhere in the email — not in the summary section, and not in any per-hurdle breakdown. When there's nothing to itemize between the two figures — no withheld taxes and no adjustments — the section shows a single Amount row instead of separate gross and net lines.

Alongside the amounts, the details section is built from the distribution you created, and rows that have nothing to say are simply left out:

• Distribution Period — shown using the period you set, including the calendar range for quarterly and monthly periods and the date range for a custom period.
• Distribution Type and Adjustments Reason — shown on a single-hurdle distribution when you've supplied them; the totals section of a multi-hurdle distribution omits them and the per-hurdle breakdown carries the detail instead.
• Withheld Taxes and Adjustments — shown only when they aren't zero. Withheld taxes and negative adjustments are presented in accounting style, in parentheses.

Each investor's bank-account section reflects what's on file. If a payout account is set, the email confirms the account it will go to by its last four digits, and how the payment will be sent (for example via Wire or ACH) when that's known. If no account is set, the email asks the investor to add one in the investor portal so they can be paid. Either way the email includes a Go To Investor Portal button, and the notice invites the investor to update their bank account — with no deadline attached.

Track delivery to each investor

Because emails send in the background, one investor's email can't hold up the rest — if a single email fails, the others still go out. Open the distribution's notice history to see what was sent and to whom: each notice shows when it was sent, how many recipients it went to, your message summary, the attachments included, and the latest delivery status for each investor. Delivery statuses update as the email service reports back.

Distributions you imported from your own records

If you brought historical distributions into Covercy One from your previous records, those distributions were never sent through Covercy One, so there's nothing to show. Opening Notice Details on one tells you plainly that the distribution was imported from historical data and that Covercy didn't generate notice details for it, rather than showing you an empty email preview. An imported distribution that has since had a notice sent through Covercy One shows its normal notice history and preview as usual.

Verify it worked

Open the distribution and confirm its status shows the notice was sent, then open the notice history and check the recipient count matches the investors you expected — remembering that split positions are grouped into one email and zero-amount allocations aren't included. Review the per-recipient list for any failed deliveries — a failure usually points to a bad or missing email address you can correct on the investor's contact record. If the readiness check won't let you send, work through the flagged items (a missing investor email or an unavailable attachment) and try again. If an action is unavailable or something won't send, confirm you have access to the holding or reach out to our team for help.