--- title: "Portfolio Investments: Partial Conversions" description: Record partial conversions in ark Portfolio Investments. This guide explains the Conversion % field, how it applies to the remaining position, what moves from the source lot to the new lot, uploading with the Non-Purchase Template, and reviewing the result. --- [Skip to content](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#main-content) English - United States Show submenu for translations [Submit a Ticket](https://connect.arkpes.com/knowledge/kb-tickets/new?hsLang=en-us) [My Tickets](https://connect.arkpes.com/tickets?hsLang=en-us) [![ark](https://connect.arkpes.com/hs-fs/hubfs/ARK__Logotype_fullcolor.png?width=200&height=68&name=ARK__Logotype_fullcolor.png)](https://connect.arkpes.com/knowledge?hsLang=en-us) Open main navigation Close main navigation - English - United States Show submenu for translations - [Submit a Ticket](https://connect.arkpes.com/knowledge/kb-tickets/new) - [My Tickets](https://connect.arkpes.com/tickets) - [Email Ark Support](mailto:support@arkpes.com) [Email Ark Support](mailto:support@arkpes.com) Search the knowledge base - There are no suggestions because the search field is empty. 1. 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[NEW Portfolio Investments](https://connect.arkpes.com/knowledge/new-portfolio-investments?hsLang=en-us) # Portfolio Investments: Partial Conversions ## Convert part of a position into another security using Conversion %. ###### **Portfolio Investments: Partial Conversions** This guide walks you through converting part of a position from one security into another using the **Conversion %** field on the Conversion transaction in Portfolio Investments. ###### **Jump to Section** - [Who Can Use This Feature](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#whocanuse) - [Before You Begin](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#beforeyoubegin) - [What Are Partial Conversions?](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#whatarepartialconversions) - [Step-by-Step: Record a Partial Conversion](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#steprecordapartialconversion) - [How Conversion % Is Applied](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#howconversion) - [What Moves and What Is Created](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#whatmovesandwhatis) - [Uploading and Exporting Conversions](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#uploadingandexporting) - [Step-by-Step: View or Edit a Conversion](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#stepvieworedit) - [Viewing Conversions on the SOI and in arkGL](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#viewingconversions) - [Best Practices](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#bestpractices) - [Next Steps](https://connect.arkpes.com/knowledge/portfolio-investments-partial-conversions#next) ###### **What You'll Learn** In this guide, you'll learn how to: - Decide when to use a partial conversion instead of a full conversion - Enter the Conversion % on the Conversion transaction - Understand what moves from the source lot and what is created on the New Security - Record more than one conversion on the same lot - Upload conversions with the Non-Purchase Template (Conversion % goes in the Affected Position % column) and export them - Review both positions on the Schedule of Investments (SOI) and in arkGL --- ###### **Who Can Use This Feature** **Ark Client Admin** - Access to all funds within their client - Can create and edit Conversions, including Conversion % **Basic Admin** - Access limited to funds on their Fund Team - Can create and edit Conversions where applicable **Fund User Admin** - Read-only access - Can view Conversions and Conversion % but cannot create or edit them --- ###### **Before You Begin** Before recording a partial conversion, make sure that: - The source Security and the New Security both exist. They can sit under the same Asset or different Assets. - A Purchase exists on the source Security with Units remaining as of the Conversion Date. - You know the **Units** received on the New Security for this conversion. Each conversion creates a new lot on the New Security with the Units you enter; they are not a running total and are not calculated from the Conversion %, because the two securities may have different unit counts or an exchange ratio. - You know any **Amount** or **Non-Cash Amount** paid as part of the conversion, if any. - The Conversion Date is not inside a published SOI period and there is no later-dated activity on the source lot. --- ###### **What Are Partial Conversions?** A Conversion moves a holding from one security into another while carrying its cost, value, and history. A **partial conversion** moves only some of the holding and leaves the rest on the source security. Typical cases include: - Part of a Preferred position converts to Common while the balance remains Preferred. - A Convertible Note converts to equity in tranches. - A position converts into more than one New Security over time. The share of the position converted is controlled by the **Conversion %** field. It works the same way as **Sale %** on a partial Sale; if you have recorded a partial Sale, the layout will look familiar. **Important** Conversion % defaults to **100**, so a full conversion is recorded exactly as before. Change the percentage only when part of the position converts. --- ###### **Step-by-Step: Record a Partial Conversion** 1. Navigate to **Portfolio Investments → Investment Transactions**. 2. Click **Add New → New Investment Transaction**. 3. Select the **Conversions** card. The **Create Conversion Transaction** modal opens. 4. In Transaction Details, select the **Asset** and enter the **Conversion Date**. 5. Use the **Securities**, **Lots**, and **Funds** filters to choose the source security and lot(s), then click **Apply**. Entity Allocations populates after you click Apply. 6. Optionally select a **Default New Security** (below the filters). This fills the New Security dropdown on every eligible Security row in Entity Allocations with that existing security, so you do not have to pick it row by row. You can still change it on individual rows. 7. In Entity Allocations, enter the **Conversion %** on the Security row. The percentage carries down to each Lot row, where you can change it per lot if needed. Purchasing Entity rows do not have a Conversion %; their values are calculated from the percentage. 8. Enter the **Units** received on the New Security for this conversion (these become the new lot; not a running total) and, if cash or other consideration was paid, the **Amount** or **Non-Cash Amount**. Leave Amount blank if nothing was paid. 9. Review the **Conversion Summary**. Converting From and Converting To reflect the Conversion % rather than the full position. 10. Click **Save** or **Save & Send to GL**. ![13-conversion-top](https://connect.arkpes.com/hs-fs/hubfs/13-conversion-top.png?width=670&height=445&name=13-conversion-top.png)![14-conversion-50pct](https://connect.arkpes.com/hs-fs/hubfs/14-conversion-50pct.png?width=670&height=445&name=14-conversion-50pct.png) --- ###### **How Conversion % Is Applied** Conversion % is applied to the **position remaining on the source lot as of the Conversion Date**, not to the lot's original size. **Allowed values** - Greater than 0 and no greater than 100 - Up to 8 decimal places - Defaults to 100 (a full conversion) **Example: more than one conversion on a lot that started at 1,000 Units** 1. 1,000 Units remaining, Conversion % 50 → 500 Units convert, 500 remain. 2. 500 Units remaining, Conversion % 50 → 250 Units convert, 250 remain. 3. 250 Units remaining, Conversion % 100 → 250 Units convert, 0 remain. A prior Sale or Conversion is already reflected in the remaining position, so the percentage always applies to what is actually left on that date. --- ###### **What Moves and What Is Created** **Source lot - reduced by the Conversion %** - Unrealized Units, Unrealized Cost, and Unrealized Value are reduced by the Conversion %. - Historical cash flows and fees move proportionally and keep their original dates, so performance on both sides stays correct. - Principal, Funded, and Commitment move proportionally where the security type uses them. - The remaining portion stays on the source lot, unchanged. **New Security lot - created with the converted portion** - Receives the Units you entered. - Receives the converted share of the source cost and value. - Receives any Amount or Non-Cash Amount entered on the Conversion. - Receives the proportional historical cash flows and fees with their original dates. When more than one conversion goes into the same New Security, each creates its own lot with the Units entered on that conversion; the New Security's total position is the sum of its lots. For example, converting 50% of a lot into 375,000 Units and later the remaining 50% into another 375,000 Units leaves 750,000 Units on the New Security across two lots **Example** Source lot: Goldbelly Convertible Note, 1,250 Units, $7,500,000 Principal, $7,602,500 Unrealized Cost. Conversion % 50; Units on Goldbelly Series C Preferred entered as 375,000. - Source after: 625 Units, $3,750,000 Principal, $3,801,250 Unrealized Cost. - Converting To: 375,000 Units (as entered), $3,750,000 Principal, $3,801,250 cost. A Conversion does not record realized gain or loss. The Journal Entry moves the converted share of cost from the source Security's investment account to the New Security's investment account, plus any Amount or Non-Cash Amount entered. A Conversion % of 100 produces the same Journal Entry as before. --- ###### **Uploading and Exporting Conversions** Conversions, including partial conversions, are loaded with the **Non-Purchase Template**. Download the current template from **Add New → Download Non-Purchase Template** on Investment Transactions. **Note** In the Non-Purchase Template the Conversion % is entered in the **Affected Position %** column. This is the same column used for Sale % on a Sale row; the template uses one name because the column applies to more than one transaction type. On a Conversion row, Affected Position % means Conversion %. ![15-add-new-menu](https://connect.arkpes.com/hs-fs/hubfs/15-add-new-menu.png?width=670&height=446&name=15-add-new-menu.png) Complete one row per conversion: - **Transaction Type** - **Conversions - Conversion**, exactly as written. - **Lot Id** - the full ID of the source lot as shown on Investment Transactions (for example ASSET00003-SEC00001-LOT00001). - **Asset Name** and **Security Name** - the source Asset and Security. - **New Asset Name** and **New Security Name** - the New Security. - **Purchasing Entity** - the entity holding the lot. - **Transaction Date** - the Conversion Date, as MM/DD/YYYY. - **Affected Position %** - the Conversion % (for example 10 for 10%). Enter 100 for a full conversion. - **Units** - the Units received on the New Security. - **Amount** - the cash paid as part of the conversion; enter **0** if none. - **Non-Cash** and **Principal** - as applicable; otherwise blank. Leave every other column blank. Example row (10% of a Goldbelly Convertible Note lot converts into 75,000 Units of Goldbelly Series C Preferred, no cash paid; columns not shown are left blank): | Transaction Type | Lot Id | Asset Name | Security Name | New Asset Name | New Security Name | Purchasing Entity | Transaction Date | Amount | Units | Affected Position % | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Conversions - Conversion | ASSET00003-SEC00001-LOT00001 | Goldbelly | Goldbelly Convertible Note | Goldbelly | Goldbelly Series C Preferred | ABC Growth SPV I LP | 05/01/2026 | 0 | 75000 | 10 | To upload the completed file: 1. Click **Add New → Upload Non-Purchase Template** and select the file. 2. Confirm the file name in the **Confirm Non-Purchase Upload** dialog and click **Upload**. 3. The **Upload Results** dialog confirms the file is processing. Click **Upload History** to follow its status; a completed file shows *Upload Successful* and the number of records created. ![16-upload-confirm](https://connect.arkpes.com/hs-fs/hubfs/16-upload-confirm.png?width=670&height=446&name=16-upload-confirm.png)![17-upload-results](https://connect.arkpes.com/hs-fs/hubfs/17-upload-results.png?width=670&height=446&name=17-upload-results.png) After the upload, the Conversion appears on Investment Transactions on the source Lot Id with the Transaction Type *Conversions - Conversion*. View Details shows the Conversion %, the New Security, and the Units you entered. **Upload tips** - Rows are processed in date order. On the same date and lot, Conversion rows are processed before other rows, so a later row in the same file can reference the new position. - More than one partial conversion from the same lot into different New Securities can be included in one file. - Record repeated conversions on one lot in date order so each applies to the correct remaining position. **Exporting conversions** Use **Actions → Export All** to export every transaction matching the current search and filters, or select rows with the checkboxes and choose **Export (n)**. The export includes Transaction Type, Transaction Date, Units, Amount Per Unit, **New Security Name**, and a percentage column showing the Conversion % applied to the source lot. --- ###### **Step-by-Step: View or Edit a Conversion** 1. Navigate to **Portfolio Investments → Investment Transactions**. 2. Locate the Conversion in the table and click **View Details**. 3. Update the Conversion %, Units, or other fields as needed. Changing the percentage recalculates both the source reduction and the New Security lot. 4. Click **Save** or **Save & Send to GL**. **Important** As with other Investment Transactions, a Conversion can be edited or deleted only when there is no later-dated activity on the source lot or the New Security lot and the Conversion Date is not in a published SOI period. Adjust the later-dated activity first. See [*Portfolio Investments: Managing Investment Transactions*.](https://connect.arkpes.com/knowledge/portfolio-investments-managing-investment-transactions?hsLang=en-us) --- ###### **Viewing Conversions on the SOI and in arkGL** After saving, confirm the following: **Investment Transactions table** - The Conversion row on the source Lot Id, with the New Security shown in Security Name. **Schedule of Investments (SOI)** - The source Security shows the remaining Units, Cost, and Fair Market Value. - The New Security shows the converted Units and its share of Cost. - Add a **Lot** level in Grouping to see the source lot and the new lot side by side. **arkGL** - The Journal Entry moves the converted share of cost between the two investment accounts. Use **Send to GL** from the Actions menu or **Save & Send to GL** on the transaction. --- ###### **Best Practices** - Check the lot's remaining position on the Conversion Date before choosing a percentage; Conversion % applies to what is left, not the original lot. - Enter Units on the New Security explicitly; they are not calculated from the percentage. - Leave Conversion % at 100 for a full conversion. - Record repeated conversions in date order so each uses the correct remaining position. - Download the current Non-Purchase Template before uploading so the column headers match, and enter the Conversion % in the Affected Position % column. --- ###### **Next Steps** After recording a partial conversion, users typically proceed to: - Enter [**Valuations**](https://connect.arkpes.com/knowledge/portfolio-investments-recording-valuations?hsLang=en-us) on the New Security - Review both positions on the [**Schedule of Investments (SOI)**](https://connect.arkpes.com/knowledge/portfolio-investments-viewing-the-schedule-of-investments?hsLang=en-us) - 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