Customizable Carried Interest Waterfall Excel Template
Originally published: 14/03/2018 16:43
Last version published: 30/05/2020 07:41
Publication number: ELQ-51197-6
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Customizable Carried Interest Waterfall Excel Template

Customizable and powerful template for carried interest calculations for private equity projects

This module allows calculating of carried interest payments with high customization:

- fully customizable hurdle rate, preferred return, carried interest and clawback provision
- monthly, quarterly, semiannual or annual payment schedule
- detailed monthly (quarterly, semiannual or annual) cash flows for General Partners (GP) and Limited Partners (LP)
- calculating of IRR for the project, GP and LP
- calculation of preferred returns for LP
- catch-up calculations for LP
- flexible setup of project cash flows

This module could be used as a stand-alone tool for valuation and building of a distribution waterfall for a project/investment. Or this module could be integrated into financial models as a framework for investment distribution.

More on distribution:
In a private equity fund, the general partner manages the committed capital of the limited partners. The GP usually commits some amount to the fund, usually 1 to 2% of the commitment. When distributing the capital back to the investor, hopefully with an added value, the general partner will allocate this amount based on a waterfall structure previously agreed in the Limited Partnership Agreement.

A waterfall structure can be pictured as a set of buckets or phases. Each bucket contains its own allocation method. When the bucket is full, the capital flows into the next bucket. The first buckets are usually entirely allocated to the LPs, while buckets further away from the source are more advantageous to the GP. This structure is designed to encourage the general partner to maximize the return of the fund.

Note: Works on Excel 2010 & Above

This Best Practice includes
One Excel Waterfall Model

Acquire business license for $49.00

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Further information

Distribution of cash flows between GP and LP in private equity projects (waterfall)

Private equity projects
Venture investments


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  • Hayhay(last updated: 09/06/2020 03:50)
  • Kelly Plato(last updated: 11/05/2020 13:31)
  • Bill Bertha(last updated: 06/05/2020 18:14)
  • Cat(last updated: 08/07/2019 22:21)
  • Steven Grin(last updated: 01/06/2018 11:59)
    Excellent carried interest waterfall model
    I was looking for a model to calculate waterfall returns and this model is fully customizable and enables you to change hurdle rates, GP/LP splits and easily allows for clawbacks.

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Discussion feed for Customizable Carried Interest Waterfall Excel Template

The user community and author are here to help. Go ahead!

  • AJ C
    Just purchased the template, it looks great but I have a question. I need to create two different classes of stock, Class A (pseudo debt) and Class B (preferred equity). Do you have any recommendations for how to incorporate that into your template
    arrow_drop_uparrow_drop_downReply reply
    • Nikhil Kumar212
      With this template can you add investors (LPs) and track individual returns?
      arrow_drop_uparrow_drop_downReply reply
      • Alex Martyanov
        It can be easily done if LPs have invested their funds under the same conditions and at the same time. The different shares could be easily modeled. The model could be used for more complicated cases, but it will require an additional tracking block.
        arrow_drop_uparrow_drop_downReply reply

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