Return of capital means part of the cash distribution came from capital, not current income or realized gains.
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Tax3 modules1 tools0 controlled examples1 document routes
Return of capital
A distribution component that returns investor capital rather than current-period income or realized gains.
Why it matters
Return of capital can affect tax character, NAV durability, and how a client understands the payout.
What this means on AltHarbor
Use this concept with distribution quality and tax entries before explaining a high yield.
Product-page application
Use this when reviewing return of capital, distribution character, tax form as mechanic fields. Product surfaces apply the same vocabulary to real fund facts.
Source checklist
- Do not infer tax character from yield alone.
- Check tax notices or final reporting documents.
- Separate economic payout quality from tax classification.
Tooltip / inline use
Do not infer tax character from yield alone.
Apply this concept
Definition to source check to tool.
Reference graph packet
One concept entry now routes to the full Learn system.
3Modules
1Tools
1Wrappers
0Examples
0Outputs
ToolDistribution Quality Lab
Help advisors explain why a high distribution is not automatically a high-quality return.
LiveWrapperUnregistered perpetual real estateAgreement-defined repurchase, tender, or withdrawal windows; may include queues, gates, or suspensions.
Perp REModuleTax: What You Need to Know Before Investing in Alternative FundsHow tax forms, return of capital, ordinary income, UBTI, exchanges, wrappers, and state issues vary by structure.
TaxModuleBenchmarking and Performance: How to Read Alternative Fund ReturnsHow to interpret yields, total returns, IRR, MOIC, inception dates, benchmark choices, and fee drag.
PerformanceConceptDistribution yieldAn annualized payout rate shown as a percentage of price, NAV, or another stated base.
Shared module: PerformanceConceptNet asset valueThe fund's stated value after assets, liabilities, and share-class economics are applied.
Shared module: PerformanceRelated modules
TaxTax: What You Need to Know Before Investing in Alternative FundsPerformanceBenchmarking and Performance: How to Read Alternative Fund ReturnsFeesFees: What You Actually Pay in Semi-Liquid Alternative FundsRelated tools
LiveDistribution Quality LabRelated wrappers
Perp REUnregistered perpetual real estateAdvisor outputs
Leave with language and diligence prompts.
Check tax-character disclosure, 19a notices, NAV trend, and whether the label is estimated or final.
Return of capital is not automatically bad, but it changes how the payout should be explained.
Concept graph
Neighboring terms to inspect next.
MetricDistribution yieldShared module: Performance / Shared module: FeesMetricNet asset valueShared module: Performance / Shared tool: Distribution Quality LabMetricPayout coverageShared module: Performance / Shared module: FeesMetricNAV lagShared module: Performance / Same wrapper row: Perp REFeeFee dragShared module: Fees / Shared module: PerformanceFeeManagement feeShared module: Fees / Shared module: Performance