Payout coverage shows how much of the distribution was supported by income and realized gains in the period.
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Metric3 modules1 tools0 controlled examples1 document routes
Payout coverage
The portion of a distribution supported by earned income and realized gains in the measured period.
Why it matters
Coverage separates a funded payout from one that may rely on capital return or NAV decline.
What this means on AltHarbor
AltHarbor uses coverage framing to turn yield claims into document-backed diligence questions.
Product-page application
Use this when reviewing payout coverage, nii / gains, distribution quality as mechanic fields. Product surfaces apply the same vocabulary to real fund facts.
Source checklist
- Compare distributions with income and realized gains.
- Look for return of capital or expense-support effects.
- Review coverage over more than one period.
Tooltip / inline use
Compare distributions with income and realized gains.
Apply this concept
Definition to source check to tool.
Reference graph packet
One concept entry now routes to the full Learn system.
3Modules
1Tools
0Wrappers
0Examples
0Outputs
ToolDistribution Quality Lab
Help advisors explain why a high distribution is not automatically a high-quality return.
LiveModuleBenchmarking and Performance: How to Read Alternative Fund ReturnsHow to interpret yields, total returns, IRR, MOIC, inception dates, benchmark choices, and fee drag.
PerformanceModuleDue Diligence: How to Evaluate a Semi-Liquid Alternative FundA five-layer framework for evaluating structure, manager quality, portfolio risk, operations, and disclosures.
Due DiligenceConceptDistribution yieldAn annualized payout rate shown as a percentage of price, NAV, or another stated base.
Shared module: PerformanceConceptReturn of capitalA distribution component that returns investor capital rather than current-period income or realized gains.
Shared module: PerformanceRelated modules
PerformanceBenchmarking and Performance: How to Read Alternative Fund ReturnsDue DiligenceDue Diligence: How to Evaluate a Semi-Liquid Alternative FundFeesFees: What You Actually Pay in Semi-Liquid Alternative FundsRelated tools
LiveDistribution Quality LabRelated wrappers
This term applies across wrappers or does not belong to a single wrapper row.
Advisor outputs
Leave with language and diligence prompts.
Read the statement of operations, shareholder report, 19a notice, and NAV bridge before treating the payout as durable.
High payout with weak coverage should be reviewed beside NAV movement and source-document freshness.
Concept graph
Neighboring terms to inspect next.
MetricDistribution yieldShared module: Performance / Shared module: FeesTaxReturn of capitalShared module: Performance / Shared module: FeesMetricNet asset valueShared module: Performance / Shared tool: Distribution Quality LabFilingSource documentShared module: Due Diligence / Shared tool: Distribution Quality LabFeeFee dragShared module: Fees / Shared module: PerformanceFeeIncentive feeShared module: Fees / Shared module: Due Diligence