This Excel template is designed for joint ventures where an institutional LP provides the majority of the equity capital while the GP participates through a combination of invested capital and a performance-based promote. It can be used for real estate, business acquisitions, private investments, or other deals requiring a clearly defined distribution structure.
The model calculates a cumulative LP preferred return, including the accrual of any unpaid preferred return when available cash is insufficient. Cash then flows through a return of LP capital tier before remaining proceeds are divided between the LP and GP according to the selected residual split. The default structure uses an 8% preferred return, followed by 100% return of LP capital and a 70% LP / 30% GP split without a GP catch-up.
Within the GP promote, distributions can be allocated between two separate GP entities. Entity 2’s promote interest includes a customizable annual vesting schedule, while the model also allows the user to determine whether any unvested promote is reallocated to Entity 1 or the LP. This makes the template useful for structuring seller rollovers, operating-partner incentives, and time-based promote arrangements.
Users can enter up to 10 years of distributable cash flow, additional equity contributions, ownership percentages, preferred-return terms, promote allocations, and vesting assumptions. The workbook includes a summary dashboard, complete waterfall schedule, investor-level cash flows, IRRs, equity multiples, distribution charts, implementation notes, and automated model checks. All formulas are visible, unlocked, and designed to be easy to audit or customize.
Similar Templates:
- Preferred Return with Splits in Each Tier
- IRR Hurdles with GP Catch-up
- Cumulative Distribution Hurdles
- Simple Preferred Return with Hurdles
