Cumulative Distribution Hurdles: 6 Tiers - Joint Venture
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Cumulative Distribution Hurdles: 6 Tiers - Joint Venture

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$75.00


This is for a joint venture deal and is built to accurately show the cash flow distributions to Investors (LP) and Operator/General Partners (GP) over time based on the cumulative distributions that the LP has received. As the LP receives greater distributions, the cash split changes per what is defined at each of the 6 hurdles.

There are up to 60 periods and they could be monthly or annual and you can delete any columns that are not necessary. The logic will flow regardless and won't break by removing columns. Also, the visualizations automatically update with that as well.

This waterfall model will account for partial splits in a given period if the hurdle is reached and there is still distributable cash flow remaining that needs to be split at a different rate. Everything is automated and will work based on any input values / hurdle amounts.

Final summary includes the effective share earned by the LP/GP in each period as well as the final IRR (internal rate of return) and visualizations that make the results more digestible. 

You can almost think of each hurdle amount as an equity multiple hurdle (and it doesn't have to be greater than '1' in the first hurdle. For example, you can define the first hurdle as an amount equal to the LP's initial investment and until that is returned cash is split at x/y (whatever you define) and then any amount available to distribute to the LP over that and until the next hurdle is based on the new x/y split and so on for up to 6 hurdles.

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