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!
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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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