SmartHelping / Joint Venture Waterfall / Excel
IRR Hurdles & GP Catch-Up
Model joint venture cash distributions through the LP’s first IRR hurdle, an optional GP catch-up and the remaining waterfall tiers. Review the cash flow and return results for the limited partner and general partner in one Excel template.
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See the waterfall in action
Follow the cash flow through the hurdles and catch-up.
Watch the walkthrough to see how the template allocates available cash. Open the screenshots below to inspect the waterfall calculations, final summary and charts.
Distribution order
First hurdle, then catch-up, then the remaining tiers.
The placement of the GP catch-up is part of the template’s waterfall logic.
LP first IRR hurdle
The model works through the LP’s first IRR hurdle before the GP catch-up stage.
Optional GP catch-up
Once the first LP hurdle is achieved, the catch-up provision applies according to the input and available cash flow. Enter 0% for the catch-up input when no catch-up applies.
Remaining hurdles and residual split
Remaining cash flow continues through the later IRR hurdles and the thereafter split according to the configured LP and GP percentages.
Cash flow and waterfall assumptions
Set the contributions, hurdle rates and distribution splits.
Use the inputs to reflect the cash flow and joint venture terms you want to evaluate.
Three IRR hurdle tiers
Configure Tier 1, Tier 2 and Tier 3 hurdle rates and their LP/GP distribution percentages, followed by a thereafter split.
Optional GP catch-up
Set the GP catch-up input for the scenario being modeled. Enter 0% to run the waterfall without a catch-up provision.
LP and GP contributions
Define the limited partner and general partner contribution percentages used in the waterfall analysis.
Annual cash flow schedule
Enter contributions and distributions across Year 0 through Year 10, then follow the resulting allocations through the waterfall.
Tier-by-tier calculations
Review the separate hurdle, catch-up and thereafter calculations, including the cash flow continuing to later tiers.
Distribution checks
Use the check rows alongside the allocation calculations and the final cash flow summary when reviewing the model results.
LP and GP reporting
See what each partner receives over time.
The Final Summary brings the partner cash flows, returns and discounted cash flow analysis together.
Cash flow and IRR
Review annual net cash flow and IRR separately for the limited partner and general partner.
Running cash position
Follow each partner’s running cash position across the annual schedule, alongside the equity percentages and check row.
Discounted cash flow and NPV
Use separate LP and GP discount-rate inputs to review discounted cash flow and net present value (NPV) for each partner.
Two cash flow charts
Compare the partner outcomes visually.
The Visual tab includes two charts that show how the LP and GP cash flows develop across the modeled years.
Total cash flow by equity type
Compare LP and GP cash flow in each year of the schedule.
Cash position by equity type
Compare the running cash position of the two partners over time.
How to use the template
Turn the distribution terms into a cash flow model.
Enter the cash flows
Add the contributions and distributions for the investment across the annual schedule and set the LP and GP contribution percentages.
Configure the waterfall
Set the IRR hurdles, tier distribution percentages, thereafter split and optional GP catch-up input.
Review the distribution sequence
Follow the first hurdle, catch-up and remaining tiers. Review the check rows and the cash flow passed between tiers.
Compare partner outcomes
Review LP and GP IRRs, cash positions, DCF results and charts. Change the catch-up assumption, including 0% if appropriate, to compare the allocation outcomes using the same underlying cash flows.
Who this template is for
For sponsors, investors and joint venture modelers.
GPs and sponsors
Model a proposed catch-up after the first LP IRR hurdle and review how cash flows through the subsequent distribution tiers.
LPs and financial analysts
Review the distribution sequence, compare partner outcomes and see how the catch-up assumption affects the allocation of available cash.
Understanding the catch-up
Make the allocation mechanics clear to both partners.
A catch-up changes how the available cash is allocated. Reviewing the full waterfall helps explain the economic effect of the chosen terms.
Performance participation
The catch-up stage follows achievement of the first LP IRR hurdle in this template, linking that stage of GP participation to the modeled hurdle being met.
LP and GP trade-offs
Cash allocated to the GP catch-up affects the amount and timing of distributions available to the LP. Compare both partner results when evaluating the structure.
Cash flow scenarios
Test the waterfall under different investment cash flows to see when the first hurdle, catch-up and later tiers are reached.
Transparent calculations
Use the tier calculations, partner summaries and charts to explain the waterfall sequence and identify assumptions that need closer review.
Also available in these bundles
Need more waterfall or real estate models?
This template is included in the Joint Venture Waterfall and Real Estate bundles. The Super Smart Bundle provides access to the complete public SmartHelping template collection.
Joint Venture Waterfall Templates
Explore templates for preferred returns, IRR hurdles, equity multiples and partner distributions.
View the Joint Venture bundleReal Estate Financial Models
Explore models for property acquisitions, development and investment structures.
View the Real Estate bundleSuper Smart Bundle
Access the complete public SmartHelping template collection across industries and financial-analysis needs.
View the Super Smart BundleCustom financial modeling
Need a different distribution structure?
Custom modeling is available when your deal needs different waterfall logic or additional requirements.
Discuss a Custom Waterfall
Share the structure you want to model and the financial outputs you need.
Contact JasonQuestions before you buy
A few useful details.
When does the GP catch-up apply?
It applies after the LP has achieved the first IRR hurdle. The remaining hurdles follow the catch-up stage as available cash flow permits.
Can I use the template without a catch-up?
Yes. Enter 0% for the GP catch-up input.
How many IRR hurdle tiers are included?
The waterfall contains three IRR hurdle tiers and a thereafter split, with the optional GP catch-up between the first and remaining hurdles.
What time periods are shown?
The workbook uses an annual schedule from Year 0 through Year 10.
What does the Final Summary show?
It shows LP and GP cash flows, IRRs, running cash positions, and separate discounted cash flow analyses with LP and GP discount rates and NPV results.
Are cash flow charts included?
Yes. The Visual tab includes total cash flow by equity type and cash position by equity type.
Which bundles include this template?
It is included in the Joint Venture Waterfall and Real Estate bundles. The Super Smart Bundle includes the complete public SmartHelping template collection.
Understand the distribution sequence
Model the hurdles, catch-up and partner outcomes.
Get the IRR Hurdles & GP Catch-Up Template for $75 and review the joint venture waterfall in Excel.
