Preferred Return - Investor Thresholds - 100% LP Capital Repaid First

I've done about a dozen joint venture waterfall frameworks and this most recent one is different enough from the rest that it deserves its own version. The way capital is repaid and the pref. works is unique to any other template I've done.

$45.00 USD

preferred return model

The template will be immediately available to download after purchase. It's also included in the joint venture templates bundle and the Super Smart Bundle.

Waterfall Structure:

  • 100% of LP capital repaid first.
  • An accrued (non-compounding) preferred return is paid to LP investors who invested above a defined threshold. This is paid at a selected year (usually a REFI or Exit event).
  • Any remaining cash is distributed to LP (both investor types) and GP pools according to a defined percentage split.
Template Features:
  • Model up to 10 years.
  • Dynamic inputs for investor contributions (up to 35 individual investor slots)
  • Adjustable preferred return rate.
  • Adjustable carry percentages.
  • automatically buckets investors into pref. and non-pref. earning buckets.
  • Shows IRR and Equity Multiple for each individual LP investor.
  • All formulas and cells are unlocked and editable.
  • Color formatting makes it easy to know what cells are supposed to be adjusted (light yellow).
  • The main waterfall distribution logic is on a single tab, a second tab holds individual investor inputs.
The model is a great tool for explaining a deal to investors. You can plug in different cash flow levels, different exit timelines / liquidity events, preferred return rates, and different investment amounts to show an investor how they may fair given those assumptions and the deal terms therein.

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