SOS - modeling help - Equity waterfall with multiple partners?

Kind of stuck here. Tried to figure this out last night - slept on it - still can't figure it out.

I am trying to set up a waterfall with multiple JV partners. I have only ever modeled with one LP and one GP. In this case, there are five distinct GPs, each with separate promotes. One LP.

At a high level, can someone explain how this kind of waterfall works? I need to model it and turn it in today, so hopefully with a clear conceptual understanding, I can figure it out.

 
Best Response

I spent 10 minutes throwing this together so I am sure there are plenty of nuances missing, but it might give you a place to start. This is how I would think about an equity waterfall for a 2/20 shop. To point out one potential inconsistency, the management fees will be subtracted from the potential carry pool (which I have not done), but again, was meant more as a starting place as I don't want to sink any more time into this. Hope this helped.

Cant figure out how to add an xls file. PM if you want the doc.

 

Aperiam ipsum sapiente iure nihil aut in reiciendis aut. Sint sunt numquam quia numquam voluptatem et aspernatur ut. Nam ut facilis reprehenderit culpa sunt qui. Fuga qui sint quo est ipsam qui aperiam. Earum occaecati ex sint enim distinctio nisi. Alias commodi adipisci consequuntur consectetur.

Quisquam dicta repellat maxime et. Sint fuga quod voluptas enim id nam magnam. Eligendi enim corporis omnis fugit accusamus sunt quibusdam. Explicabo tenetur ipsam ratione saepe.

Cumque culpa quae fugiat quis dolorem nisi. Et expedita nostrum non vero a.

Career Advancement Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Warburg Pincus 99.0%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

March 2024 Private Equity

  • Principal (9) $653
  • Director/MD (21) $586
  • Vice President (92) $362
  • 3rd+ Year Associate (89) $280
  • 2nd Year Associate (204) $268
  • 1st Year Associate (386) $229
  • 3rd+ Year Analyst (28) $157
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (313) $59
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
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
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...”