·The Dash
How quarterly USD distributions work
Where the investor's income comes from, when and how payouts arrive, and what reinvestment means — using a private credit fund as the example.
“Quarterly distributions in USD” sounds good — but how does it work in practice? Step by step.
Where the income comes from
The fund issues short, secured loans to businesses at interest. The business repays with interest. The spread between the borrower’s rate and your target yield covers the fund’s costs and the buffer; the rest forms investor income.
So your income isn’t a “promise” — it’s a share of the interest a working business actually pays.
When payouts arrive
- Distributions happen once a quarter (4 times a year).
- Before each payout, a portfolio report is prepared: what’s deployed, how loans are performing.
- The payout is in USD.
Roughly how much
At a target rate from 15% per annum, a quarterly payout is roughly a quarter of the annual yield on your committed amount. You can estimate it for your amount in the calculator on the home page.
Important: the rate is a target, not guaranteed. In periods of defaults, yield can temporarily draw down.
Reinvestment
You can either:
- withdraw — take income in hand each quarter; or
- reinvest — leave it in the fund so the income keeps working (compounding).
Priority: who gets paid first
Distribution follows a fixed order: first the return and principal to investors, and only then the manager’s share. The Dash’s own capital sits in the first-loss tranche, meaning it takes losses before you do.
Returns are targets and not guaranteed. Investments are illiquid and carry the risk of capital loss. This material is informational and is not an offer or investment advice.