SmartHelping / Joint Venture Waterfall / Excel
Hybrid Joint Venture Waterfall Model
Model a preferred return, equity repayment and investor return threshold before moving to the final LP and GP distribution split.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
See the model in action
Walk through the waterfall inputs, logic and outputs.
Review how available cash moves through the preferred return, equity repayment, investor return hurdle and final distribution split.
Inside the model
A flexible investor distribution model.
Enter the joint venture structure, connect annual distributable cash flow and review how the model allocates cash between the LP and GP.
Calculate the investor's preferred return
Track the amount due to the LP based on the selected preferred-return rate and the cash available for distribution.
Repay the applicable capital balance
Direct available cash toward investor equity repayment before moving to the performance-based distribution tiers.
Test two investor return targets
Monitor the LP's IRR and equity multiple to determine when the target-return tier has been completed.
Apply the final LP and GP split
Move future distributions to the final configurable split after the investor's return threshold has been reached.
Configure the initial equity structure
Define the percentage of the original investment contributed by the LP and GP based on the transaction terms.
Set different percentages by tier
Enter separate LP and GP distribution percentages for each applicable stage of the waterfall.
Add the waterfall to another model
Copy the complete worksheet into an existing workbook and connect the investment and annual distributable cash-flow references.
Test alternative investor hurdles
Use five Excel data tables to review how changes to the IRR and MOIC targets affect investor returns.
Distribution waterfall
Follow available cash through four separate tiers.
Each tier calculates the amount due to the LP before advancing to the next stage. Contribution rates and distribution percentages can be configured for the applicable operating agreement.
Preferred return
Available cash first funds the LP's accrued preferred-return balance.
Equity repayment
Remaining cash repays the applicable LP or investor capital balance.
IRR or MOIC target
Cash follows the selected LP/GP split until either investor return target is reached, whichever occurs first.
Thereafter split
Once the investor threshold has been reached, future distributions use the final configurable LP and GP percentages.
How to use it
From joint venture assumptions to investor returns.
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Connect the investment and cash flow
Enter or reference the initial investment and each year's distributable cash flow.
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Define the equity contributions
Set the percentage of initial equity contributed by the LP and GP.
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Configure the waterfall hurdles
Enter the preferred return, target IRR, target MOIC and tier-specific distribution percentages.
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Review distributions and sensitivity cases
Analyze annual LP/GP allocations, investor returns and the results of alternative hurdle assumptions.
Who gets value from it
Built for people structuring investor distributions.
Real estate sponsors
Model investor economics for acquisitions, developments and operating partnerships.
Business operators
Evaluate how cash is shared between capital providers and the operating partner.
Investors and family offices
Review expected distributions, IRR, MOIC and the timing of return thresholds.
Advisors and consultants
Use an editable framework to translate operating-agreement terms into transparent waterfall calculations.
Also available in these bundles
Need more than one waterfall model?
This hybrid waterfall template is included in the following SmartHelping model collections.
Joint Venture Bundle
Get this template alongside additional preferred-return, promote and waterfall models.
View Joint Venture BundleSensitivity Table Bundle
Access financial models featuring structured Excel data tables and sensitivity analysis.
View Sensitivity Table BundleSuper Smart Bundle
Get the complete SmartHelping collection of operating, valuation, financing and investment models.
View Super Smart BundleRelated financial models
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Explore the preferred-return modelPreferred Return with Multiple Hurdles
Configure a preferred-return structure with multiple investor hurdles.
Explore the multiple-hurdle modelPreferred Return with Optional Hurdles
Turn individual waterfall hurdles on or off based on the agreement.
Explore the optional-hurdle modelQuestions before you purchase
A few useful details.
What makes this a hybrid waterfall?
The model combines a preferred return and equity repayment with a third tier that continues until the LP reaches either a target IRR or target MOIC. It then moves to the final distribution split.
Which occurs first: the IRR or MOIC threshold?
The model evaluates both return metrics. The third tier ends when either the target IRR or target MOIC is reached, whichever happens first.
Can I change the LP and GP contribution percentages?
Yes. The initial contribution rates for both the LP and GP are configurable.
Can each tier use a different distribution split?
Yes. The LP and GP distribution percentages can be configured separately for each applicable tier.
Can I add the waterfall to another financial model?
Yes. All logic is contained on one worksheet. Copy the tab into another workbook and connect the initial investment and annual distributable cash-flow references.
What is included in the template?
The unlocked Excel model includes the initial investment year, up to 10 annual forecast periods, complete waterfall calculations and five sensitivity tables.
Put the investor waterfall in one clear model
Connect distributable cash flow to LP and GP returns.
Download the editable Hybrid Joint Venture Waterfall Model for $45.
