Choose how distributions flow between LPs and GP. This determines when the GP receives promote.
American (Deal-by-Deal)
GP receives promote on each deal as it is realized. Faster GP compensation but higher LP risk. Common in value-add and opportunistic funds.
European (Whole Fund)
ALL investor capital must be returned plus preferred return before GP receives any promote. Lower LP risk, aligns GP incentives with total fund performance.
Hybrid (Modified European)
European-style with a clawback reserve. GP receives partial promote but sets aside a reserve percentage to protect LP capital. Balanced approach.
% of GP promote held in reserve until fund liquidation
2 Deal Setup
Define the equity structure and investment timeline.
GP's share of total equity (skin in the game)
3 Waterfall Terms
Set the preferred return, catch-up, and profit split tiers.
Annual cumulative preferred return to LPs
GP Catch-Up
GP receives 100% of distributions until GP has received this % of total profits
Profit Split Tiers
LP Split %
GP Split %
IRR Hurdle %
Tier 1
Tier 2
Tier 3
No hurdle = all remaining
4 Exit Proceeds
Set the total exit proceeds as an equity multiple or dollar amount.
1.0x2.0x3.0x4.0x
Overrides the slider above
5 Per-Investor Breakdown (Optional)
Enter the number of LPs and average check size to see individual investor distributions.
Leave blank to split LP equity equally
B Structure B Terms
Configure alternate waterfall terms for side-by-side comparison. Same deal setup and exit proceeds apply.
GP Catch-Up
Profit Split Tiers
LP %
GP %
IRR Hurdle
Tier 1
Tier 2
Tier 3
Waterfall Distribution Breakdown
LP / GP Split
A Structure A
B Structure B
Overlay Comparison
LP/GP Split Comparison
Per-Investor Breakdown
Investor #
Investment
Total Distribution
Multiple
Est. IRR
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