GP-Led Secondaries Continuation Fund Model

You have your starting NAV...then you apply discount % = Purchase Price valuation. This is your equity (or assume fees). You can imply an EV and multiples on this with current cap structure.

Model the cashflows, make basic debt assumptions - you typically aren't given too much on debt terms so just assume interest rate + cashflow sweep (probably no mandatory amort b/c you don't have those terms). Typical LBO stuff but probably more simple. Calculate exit value like normal.

Distribution:

• Calculate required equity value to hit 8% pref return based on equity invested. X*(1+8%)^5
• Calculate threshold at which 100% catch-up is reached - remember, catch-up means that after the preferred return value, Sponsor gets all additional distributions until their carry amount is equal to 20% of total profit up to that point. So, you do: Initial Equity + (Pref equity threshold - initial equity) / (1-20%), which represents the ceiling of "profit" where the catch-up applies. Within this range, sponsor gets all distributions. After this range, it's split 80 / 20
• Then, depending on the exit equity value, you do: first priority is preferred return, then catch-up, then remaining carry and LP split. GP gets the catch-up and carry, LP gets the preferred return and 80% profits thereafter
• You also might have fees, which gets net out of LP distribution

That's basically every single thing you need to know. If you cannot model it after this, I don't think anybody can really help you.