Recap

I have having difficulty underwriting and modeling a recap of an apartment building. Currently we are finishing up the development of an apartment building that we built using equity from a fund we are trying to close out. As a result we want to recap the funds equity and bring in fresh equity in order to stay in the deal. I am trying to put together an underwriting and waterfall structure that makes sense but it is confusing and difficult for me for the following reasons 1. Recap will take place in July 2. A refinance event will then take place in November in which the fresh equity will not receive any of the proceeds 3. There is a simultaneous development of a pad adjacent to our site which yields negative cash flow for a few month

I have already built out the ten year cash flow projections, I am just confused as to how this transaction will actually work and therefore confused on how to integrate it into the waterfall.

1 Comments
 

Rem quis temporibus iste pariatur fugiat. Velit dolorem doloremque optio aut iusto sed totam. Quam ducimus sint repellendus culpa eos similique sunt.

Dolor necessitatibus rerum magni. Sequi consequuntur sed reiciendis velit eum autem aut delectus. Hic totam omnis provident. Commodi et voluptatem magnam distinctio commodi.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

November 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

November 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (29) $183
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (77) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”