What are common promote structures?
I am practicing modeling different waterfall/promote structures and want to make sure I am comfortable with the most likely structures I will encounter.
I am comfortable modeling a structure in which the GP/LP contribute a fixed amount and differing amounts are distributed to the GP/LP depending on the IRR achieved. What other types of waterfall/promote structures should I become comfortable modeling?
Any help is much appreciated! Thanks!
Depends
That's why I'm asking for more scenarios to practice.
If you want to get fancy start adding structures such as minimum multiples, GP catch-ups, cost-overrun true-ups, etc.
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