Overview of the Private Equity Waterfall Model
This distribution waterfall engine allows you to calculate private equity investment structures. The model can be used for private equity real estate funds or any type of individual transaction on a deal-by-deal basis.
On the Cash Flows tab, you can import cash flows from 3rd-party platforms, or use one of our sample deals.
The Assumptions tab allows you to set contributions for the General Partner (GP) and Limited Partners (LPs) as well as the preferred return. You can also set hurdle rates and carried interest at up to four investment tiers.
The preferred return supports both simple and compounding interest, as well as IRR and equity multiple calculations. Investment tiers support simple and compounding interest, and also IRR.
All compounding can be done on a monthly, quarterly, semi-annual, or annual basis.
A Residual Split is included to handle any remaining excess cash flows.
After calculation, you can view a dynamic waterfall diagram, as well as return metrics for the project, investors, and the manager. A detailed distribution waterfall outlines the cash flows on a yearly basis and performs annual cash flow checks.
You can also export the final private equity waterfall model to Microsoft Excel for further analysis.