Quick waterfall scenario that I'm having some trouble with, though I'm sure it's not that difficult.
Currently putting together a waterfall with the following structure:
9% accrual, non-compounding pref return on initial investment, then:
70% to LP up to 15% IRR,
60% to LP up to 20% IRR,
The way I have modeled it previously (and more simply) is to pay out the accrued pref, return investment and then promote the remaining proceeds equally.
I am struggling on how to promote the remaining cash flow at the thresholds provided above, as I've already paid back contributions. How would you guys recommend structuring the promote assuming the pref and initial investment are repaid first?
Am I making this more complicated than I should? Would really appreciate any insight here.