SmartHelping / Joint Ventures / Excel
Cash Flow Waterfall Template: 3 IRR Hurdles
Model how cash contributions and distributions flow between a limited partner and a general partner. Configure three IRR hurdles and the associated cash-flow splits, then review each partner’s results with the included DCF and NPV analysis.
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Video walkthrough & spreadsheet preview
See the three-hurdle waterfall in action.
How the waterfall works
Connect the distribution split to the LP’s return.
A reusable standalone template
Enter cash contributions and available distributions to analyze a joint venture without rebuilding the waterfall for each deal.
Three IRR hurdles
Define the return thresholds and the distribution splits that apply as the waterfall moves through the hurdles.
LP and GP economics
Model the limited partner as the investor and the general partner as the sponsor or operator, with cash-flow allocations set by your assumptions.
Performance-based GP participation
Configure a greater share of distributions for the GP at higher LP return levels to model the sponsor’s incentive structure.
First-hurdle examples
Choose how cash is shared before the first hurdle.
The first-tier split is configurable. These examples show two ways to structure the initial allocation before later hurdle splits apply.
100% LP / 0% GP
Allocate all available distributions to the LP until the LP reaches the selected first IRR hurdle.
Pro rata to contributions
Set the initial distribution split in proportion to the partners’ capital contributions until the LP reaches the first hurdle.
Included DCF & NPV analysis
Review discounted cash flow for both partners.
Limited partner NPV
Use the included discounted cash-flow analysis to review the net present value of the LP’s cash flows.
General partner NPV
Review the GP’s net present value alongside the LP results to assess both sides of the structure.
Practical applications
Apply the waterfall to your deal’s cash flows.
Real estate joint ventures
Use the standalone allocation structure with contributions and distributions from a property investment analysis.
Other cash-flow investments
Apply the framework to other joint ventures, including operating investments such as oil and gas, where you have cash flows to allocate.
Getting started
Move from deal cash flows to partner allocations.
Enter the deal cash flows
Provide the cash contributions and distributions to be allocated between the partners.
Define the hurdle structure
Set the three IRR hurdles and the LP/GP cash-flow split for each applicable tier.
Choose the initial allocation
Set the first-tier split to reflect the structure you want to analyze, such as all distributions to the LP or pro rata participation.
Review both partners’ economics
Inspect the resulting allocations and the DCF and NPV analysis for the LP and GP. Adjust the assumptions to compare structures.
Related versions & applications
Explore the catch-up version or a property model.
More templates in one purchase
Explore the bundles that include this template.
Joint Venture Templates Bundle
Explore waterfall, preferred-return, and partner allocation templates.
Explore the templateReal Estate Templates Bundle
Explore financial models for property acquisition, development, and investment.
Explore the templateSuper Smart Bundle
Explore the complete public SmartHelping financial model collection.
Explore the templateAdditional resources
Explore supporting analysis tools.
Questions before you start
A few useful details.
What is the purpose of this template?
It is a general standalone cash-flow waterfall for allocating contributions and distributions between an LP and GP using three IRR hurdles.
Can I use it with different deals?
Yes. Enter the relevant cash contributions and distributions and configure the hurdle rates and splits for the structure you want to analyze.
Can the LP receive all distributions before the first hurdle?
Yes. Set the first-tier split to 100% LP and 0% GP to allocate available distributions to the LP until the first IRR hurdle is reached.
Can the first tier distribute cash pro rata?
Yes. You can set the first-tier split in proportion to the partners’ contributions.
Does this version include a GP catch-up provision?
The GP catch-up option is offered in a separate version, linked above under related versions.
Is DCF analysis included?
Yes. The template includes DCF analysis with NPV for both the limited partner and general partner.
Is there an example integrated with a property forecast?
Yes. The Short-Term Rental Real Estate Model linked above uses a modified version of this waterfall based on monthly cash-flow periods.
How is the template delivered?
The $45 one-time purchase provides an immediate Excel download. It is also included in the bundles listed above.
Joint-venture cash-flow allocation
Make the hurdle structure and partner economics clear.
Cash Flow Waterfall Template: 3 IRR Hurdles — $45, one-time purchase.
