What is included
A model built around the decision
Contribution and distribution timing
Preferred return and return-of-capital logic
GP catch-up and multi-tier promote calculations
IRR or equity-multiple hurdles
Partner-level cash flow, IRR and equity multiple
Audit checks and scenario comparison
Best suited to
Typical mandates
Joint venturesSyndicationsDevelopment partnershipsReal estate fundsOperating-agreement review
How the engagement works
- 1Translate the term sheet or agreement
- 2Confirm timing and hurdle conventions
- 3Build tier-by-tier allocation logic
- 4Test edge cases and shortfalls
- 5Deliver partner statements and a walkthrough
Frequently asked questions
Can you replicate our operating agreement?
Yes. We translate the economic provisions supplied by your legal advisers into model logic and document the interpretation used. We do not provide legal advice.
Can hurdles use IRR and equity multiple tests?
Yes. The model can use IRR hurdles, equity-multiple hurdles, or a combination, with European-style or deal-by-deal distributions as required.
How do you test the waterfall?
We test no-profit, partial-return, exact-hurdle, high-return and irregular-timing cases and include visible checks showing that all available cash is allocated once.
Further reading
- How Much Does a Real Estate Financial Model Cost?A practical guide to pricing development, acquisition, waterfall, fund and portfolio models - and what changes the scope.
- GP-LP Waterfall Structures Explained With an ExampleHow preferred return, return of capital, catch-up and promote tiers allocate real estate cash flow.
Discuss your gp-lp waterfall & promote model
Talk directly with a financial modelling consultant about your deal, model, or lender requirements.
No obligation. You speak directly with the consultant who would build your model.