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Inputs & Library

Partnership & waterfall

Split returns between LP and GP with hurdle tiers, promote, and fees.

Partnership (⌘2) splits the deal’s cash flows between LP and GP. With the waterfall off, the model reports all-equity returns; switch it on and LP/GP metrics appear across the scenario bar, Scenario Compare, Sensitivity, and the workbook.

The Partnership view: Waterfall editor with Enabled checkbox, total equity and LP/GP shares, capital split, distribution timing toggle, GP fees, tier ladder, and a live returns table with LP and GP rows.
Fig 01A 90/10 deal with a 3-tier European waterfall. Live returns right: LP 13.42% / 2.74x, GP 15.40% / 4.19x on $6.47M of promote.

  1. Tick Enabled on the Waterfall editor.

  2. Set the Capital split — LP equity % and GP equity % (the dollar amounts compute from total equity).

  3. Pick Distribution timing — European timing (return all capital first) or American timing (deal-by-deal promote).

  4. Build the Tier ladder: each tier has a Hurdle % (IRR), optional EM hurdle, LP/GP splits above the hurdle, and a Catch-up %. + Tier appends; the allocation columns show each tier’s dollars live.

  5. Add GP fees if the GP takes fees before the split (+ Fee).

Live returns shows contribution, distribution, profit, IRR, and multiple, per investor, recomputed on every edit. The header rail carries project IRR, project multiple, LP IRR, and GP profit.