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
- IRR vs Equity Multiple in Real Estate: Which Matters More?IRR measures how fast capital grows; equity multiple measures how much. A worked example shows why investors need both before comparing deals.
- GP-LP Waterfall Structures Explained With an ExampleHow preferred return, return of capital, catch-up and promote tiers allocate real estate cash flow.
- Real Estate Financial Modeling: A Practical GuideWhat a real estate financial model contains, the main model types, how to build one step by step and what makes a model institutional-grade.
- Excel vs ARGUS for Real Estate Modeling: When to Use EachARGUS is strong for lease-by-lease commercial cash flows. Excel is strong for bespoke deal structures. Most institutional deals use both.
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.