Hoping someone can assist as I have an interview test coming up which I believe is going to focus on the technical side of JV structures (modelling test...yay!). I am currently working for a developer which does not engage in JVs so I am not very experienced in the process but I've been educating myself over the holiday period.
I started off with, and learned to create from scratch (lots of credit to Adventures in CRE), a typical pari passu, 4-tier equity waterfall model (all fine). I then decided to add some bells and whistles and threw in the Pref return of capital for LP function (all fine again...I think). But now I'm tackling the addition of a catch up provision which I am struggling with...I understand the concept but hit a road block trying to model it.
Question; How to do I go about modelling catch up without the use of 'goal seek' and/or 'solver'?
I've seen people ask the same question on these forums, but unfortunately for me, the answers look to be hidden behind PMs. I have managed to calculate it with goal seek/solver but I'd prefer not use those tools in an interview test.
I've attached an excel file for my workings (sorry about the sloppiness, aesthetics is not a high priority right now) so people can see where I am coming from. I've input quite a few different scenarios and everything seems to be running as intended so far but like I said; not an expert on this side of the modelling.
Would be delighted if anyone could offer any help or maybe even additional advice on this.
Bonus Question; Any other technical aspects of the JV i should be looking to conquer (I'm fine with EM calcs), like modelling provisions such as look back or claw back? Company acts as GP on it's ventures if it's of any benefit to the question.