Calculates distribution waterfalls per LPA terms, carry, clawback
The Waterfall Calculator skill calculates distribution waterfalls according to Limited Partnership Agreement (LPA) terms. It models carried interest, clawback provisions, and LP/GP distributions across various waterfall structures common in venture capital.
Input: Fund terms, realized/unrealized values
Process: Apply waterfall mechanics
Output: Distribution allocation, carry calculation
Input: Exit scenario, fund status
Process: Calculate pro forma distributions
Output: LP/GP split, carry amount
Input: Fund history, projected outcomes
Process: Model potential clawback
Output: Clawback exposure, escrow adequacy
Input: Portfolio status, exit projections
Process: Model fund conclusion scenarios
Output: Projected final distributions
| Component | Description |
|---|---|
| Return of Capital | LPs receive contributed capital first |
| Preferred Return | LPs receive hurdle (typically 8%) |
| GP Catch-up | GP catches up to carry percentage |
| Carried Interest | 80/20 split (typically) on remaining |
| Type | Carry Calculation Basis |
|---|---|
| American | Deal-by-deal, immediate carry |
| European | Whole fund, after capital return |
| Hybrid | Combination with clawback |