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The JV Equity Waterfall: Full Model Build

Build the complete European six-tier waterfall from a near-blank sheet: capital, the compounding preferred return, the GP catch-up, three escalating IRR-hurdle promote tiers, and LP/GP MoIC + IRR. Every line is linked and tied out (both sides sum to proceeds).

REPE · VP Level · about 55 minutes · 27 guided steps

Lesson outline

Capital Structure

  1. Step 1: LP Capital
  2. Step 2: GP Capital

Preferred Return Schedule (5-Year Compounding)

  1. Step 3: Year 1 Preferred Balance
  2. Step 4: Year 2 Preferred Balance
  3. Step 5: Year 3 Preferred Balance
  4. Step 6: Year 4 Preferred Balance
  5. Step 7: Year 5 Preferred Balance

Tier 2: Preferred Return (Hurdle 1)

  1. Step 8: Total Preferred Return
  2. Step 9: LP Preferred Return
  3. Step 10: GP Preferred Return
  4. Step 11: Remaining After Return of Capital & Pref

Tier 3: GP Catch-Up

  1. Step 12: GP Catch-Up
  2. Step 13: Remaining After Catch-Up

Tier 4: Hurdle 1 to Hurdle 2 Promote

  1. Step 14: Cumulative Distribution at Hurdle 2
  2. Step 15: Tier 2 LP Distribution
  3. Step 16: Tier 2 GP Distribution

Tier 5: Hurdle 2 to Hurdle 3 Promote

  1. Step 17: Cumulative Distribution at Hurdle 3
  2. Step 18: Tier 3 LP Distribution
  3. Step 19: Tier 3 GP Distribution

Tier 6: Residual Split (Above Hurdle 3)

  1. Step 20: LP Residual Split
  2. Step 21: GP Residual Split

Total Distributions & Returns

  1. Step 22: Total LP Distribution
  2. Step 23: Total GP Distribution
  3. Step 24: LP MoIC
  4. Step 25: LP IRR
  5. Step 26: GP MoIC
  6. Step 27: GP IRR