Joint Venture Template Bundle

Description
I've worked with a lot of private equity ventures over the years. My goal with this template bundle has been to provide a diverse set of reusable cash flow waterfalls that help professionals quickly and easily model out various joint venture structures. Having learned how this type of business logic works from the ground up, I know how hard it is to understand at first. These tools will be helpful in saving time and being a great way to learn private equity finance.

Templates Included:


Preferred Return - The simple return hurdle sits on top of all other splits, after that has been met, the remaining cash flow is split at a defined rate. I've included a second version of this as well that has two profit tier splits. The second tier is triggered once the LP h as received all their investment back plus the preferred return due. You will have options to compound unpaid returns or not as well as to accrue unpaid returns or not. Also, there is an option to reduce investor equity with distributions above the preferred return or not. I've used this in the most amount of deals.
https://www.eloquens.com/tool/Ryp5hwj2/strategy/waterfall-chart-excel-templates/preferred-return-annual-waterfall-includes-shortfall-repayment-option-and-more

Preferred Equity - This is a 'hard' return, meaning 100% of the cash flow goes to the LP until they have recieved all of their equity back and a defined return. Then, the rest of the cash flow goes to common equity. I did include an option for an equity kicker (where the preferred investor can participate in some of the upside at a defined percentage. This has a common equity waterfall on the end of it that uses IRR hurdles for a secondary GP/LP structure. If that is not applicable, you can simple just use the first layer. This model also has the option to accrue unpaid returns or not and compound unpaid returns or not.
https://www.eloquens.com/tool/z8dksp9D/finance/real-estate/preferred-equity-waterfall-excel-model

3-Tier IRR Hurdles - Simply enter in the project total contributions and distributions per period, fill out the hurdle rates / split percentages, and the formulas do all the rest. This is a clean view for each tier and in aggregate. There is also a GP catch-up version included. I see this structure used a lot as well.
Base Version - https://www.eloquens.com/tool/EL49s07p/finance/cash-flow-excel-template/staple-of-cash-flow-waterfalls-3-tier-irr-hurdle-distribution-structure
GP Catch-up Version - https://www.eloquens.com/tool/7J8wtj4R/finance/return-on-investment-roi-calculator-excel-template/irr-hurdles-with-gp-catch-up

Preferred Equity (MOIC Hurdle) - Here we have a less common joint venture waterfall, but still relevant in some cases as it is easier to explain and calculate. The model that looks at a multiple on invested capital (MOIC) as a hurdle rather than an IRR. This can sometimes be easier to understand for investors or sponsors. Available cash is split at a defined rate until 100% of all investor funds are repaid (it could be 100% / 0% or what have you) and then all cash is split at a new rate up to a certain MOIC achieved by the investor. Finally, after the MOIC hurdle is achieved, cash is split at a final distribution rate.
https://www.eloquens.com/tool/jbJ4t3AK/finance/private-equity/2-hurdle-preferred-equity-waterfall-repay-equity-attain-roi-target

Cumulative Distribution Cash Flow Waterfall - Hurdles for each tier are based on total cash distributed to the investor. This is not based on any IRR hurdles but rather total cash distributed. You will see something like this used in ventures that may have unpredictable returns where the investors simply wants to make sure they hit certain total distribution amounts. In theory, you could set each hurdle amount at a multiple of the initial investment and then you effectively have a mutli-tiered MOIC hurdle template.
https://www.eloquens.com/tool/g32PsmD2/finance/joint-ventures/cumulative-distribution-hurdles-6-tiers-joint-venture

Preferred Return (30-member) - Varying deposit / exit dates. This thing is awesome! check out the last few screen shots and video to learn more about this joint venture spreadsheet.
https://www.eloquens.com/tool/BmDjTgYe/finance/investment-banking/preferred-return-investment-fund-tracker-multi-member

Self-storage - I put a lot of time into the dynamic nature of this model to analyze up to 6 funds over time from the perspective of a GP or LP. The final cash flows are run through an IRR hurdle waterfall for each deal individually. The cool thing about this template is that the user can see what happens if they start with a single initial investment, to a deal, exit, and then use the proceeds for the next deal and so on without every adding new equity. There are options for debt on each deal as well.
https://www.eloquens.com/tool/rQ4diAwX/finance/financial-modeling-courses-tutorials/self-storage-equity-ramping-through-multiple-funds-excel-financial-model

Multi-family Real Estate - I've put a base real estate model on top of a regular 3-tier IRR hurdle waterfall distribution schedule. The model goes for up to 10 years and includes dynamic logic for an initial loan as well as a ReFi loan. The terms can include an interest only period as well. This has recently been updated to allow for up to 4 properties to be analyzed on the same workbook. The user will be able to configure all inputs for the operating property as well (rent rolls, expenses, exit cap rate).
https://www.eloquens.com/tool/KyxZCKzA/finance/real-estate/multi-family-real-estate-joint-venture-model-irr-hurdles-refinancing-and-exit-assumptions

Crypto / Long-only Investment Fund Manager - This has logic to track individual investments in stocks or crypto that are long-only. I built the model to allow for a 3-tier IRR Hurdle waterfall to be used for all investors as an LP pool of which each investor has a portion of based on when they invested. That logic is used to figure out how much of the available cash distributions go to the investor pool versus the fund operator over time. The positions have a robust database entry system to track what has happened over time with each position. I used a bucketing system to properly figure out the cost basis when a position is exited.
https://www.eloquens.com/tool/XLayugDa/engineering/cryptocurrency-excel-templates/stock-crypto-fund-manager-portfolio-and-distribution-tracker

Preferred Return (simple interest, multiple hurdles) - This model makes it easy to calculate the return due to the LP based on multiple non-compounding return hurdles. On this, there is a separate hard coded entry for repayment of equity. The returns due are automatically calculated based on each hurdle rate. Out of all the ways a preferred return deal can be structured, this is probably the most simple structure besides a straight hard-coded split of all cash flow.
https://www.eloquens.com/tool/XLmKCg05/finance/cash-flow-excel-template/preferred-return-calculator-simple-interest-with-3-hurdles

Mixed-use Real Estate - I included this real estate model in here as well because it has cash flows based on monthly granularity and a robust acquisition / development period. The cash flow waterfall that was integrated is a 3-tier IRR Hurdle waterfall. It comes in a SQ. FT. version and unit-based version.
https://www.eloquens.com/tool/nNnVugb7/finance/real-estate/general-mixed-use-real-estate-model-10-year

Hedge Fund Fee - This model simulates the fund operator asset management and performance fees based on how the NAV changes over time. It includes a high watermark feature as well as a soft hurdle rate that recalculates each year.
https://www.eloquens.com/tool/Q9MAhjLr/finance/hedge-fund-models/hedge-fund-simulation-model


Want More? Get the All Model Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic