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Equity Waterfall

waterfall equity model

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Bishr Shiblaq
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60 views4 pages

Equity Waterfall

waterfall equity model

Uploaded by

Bishr Shiblaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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EQUITY WATERFALL

RETURN SUMMARY PARTNERSHIP LEVEL EQUITY WATERFALL

Limited Year Year 0 Year 1 Year 2 Year 3 Year 4


Sponsor Total
Partner End of Year Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
SUMMARY OF INVESTOR LEVEL RETURNS
Total Equity 217,000 1,953,000 2,170,000 Limited Partner (LP) Returns
Cash Distribution 5,734,535 11,769,266 17,503,800 Total LP Distributions - 238,562 712,114 597,698 409,146
Profit 5,517,535 9,816,266 15,333,800 Total LP Contributions 1,953,000 - - - -
Total LP Cash Flow (1,953,000) 238,562 712,114 597,698 409,146
Average Annual Cash-on-Cash 264.26% 60.26% 80.66% LP Cash-on-Cash 60.26% 12.22% 36.46% 30.60% 20.95%
Levered IRR 48.76% 29.49% 33.08% LP IRR 29.49%
Equity Multiple 26.43x 6.03x 8.07x LP Equity Multiple 6.03x

EQUITY CONTRIBUTION Sponsor Returns


% Amount Total Sponsor Distributions - 26,507 79,124 66,411 45,461
Sponsor 10.00% 217,000 Total Sponsor Fees - - - - -
Limited Partner 90.00% 1,953,000 Total Sponsor Contributions 217,000 - - - -
Total Equity 2,170,000 Total Sponsor Cash Flow (217,000) 26,507 79,124 66,411 45,461
Sponsor Cash-on-Cash 264.26% 12.22% 36.46% 30.60% 20.95%
PARTNERSHIP FEES Sponsor IRR 48.76%
Calculated on % Total Sponsor Equity Multiple 26.43x
Sponsor Acquistion Fee 10,000,000 0.00% -
Sponsor Asset Management Fee 0.00% - Property Cash Flow for Distribution
Sponsor Disposition Fee 19,116,162 0.00% - Gross Levered Cash Flow (2,170,000) 265,068 791,238 664,109 454,607
Total Fees to Sponsor - Partnership Fees
Sponsor Acquistion Fee -
PROMOTE STRUCTURE Sponsor Asset Management Fee - - - -
Return Hurdle Annual IRR Promote Investor % Sponsor % Sponsor Disposition Fee
Hurdle 1 Preferred Return 10.00% 90.00% Total Fees to Sponsor - - - - -
Hurdle 2 8.00% 30.00% 37.00% 63.00% Net Levered Cash Flow (2,170,000) 265,068 791,238 664,109 454,607
Hurdle 3 12.00% 30.00% 37.00% 63.00% 12.22% 36.46% 30.60% 20.95%
Hurdle 4 15.00% 30.00% 37.00% 63.00% Hurdle 1 Return Threshold- Up to: 8.00%
Beginning Balance - 1,953,000 1,870,678 1,308,219 815,178
Check Contributions from LP 1,953,000 - - - -
Cash Flow available for distribution 15,333,800 Distributions to LP - 238,562 712,114 597,698 409,146
Cash Flow being distributed 15,333,800 Required LP Distriutions to hit Hurdle 1 Return Target - 156,240 149,654 104,658 65,214
Cash Flow coming in and being distributed are the same 1.00 Ending Balance 1,953,000 1,870,678 1,308,219 815,178 471,247
LP Return of Capital IRR Check: 8.00% (1,953,000) 238,562 712,114 597,698 409,146

Contributions from Sponsor 217,000 - - - -


Distributions to Sponsor - 26,507 79,124 66,411 45,461
Total Distributions - 265,068 791,238 664,109 454,607
Cash Flow Remaining - - - - -

Hurdle 2 Return Threshold- Up to: 12.00%


Beginning Balance - 1,953,000 1,948,798 1,470,540 1,049,307
Contributions from LP 1,953,000 - - - -
Prior Distributions to LP 238,562 712,114 597,698 409,146
Distributions to LP Hurdle 2 - - - -
Required LP Distriutions to hit Hurdle 2 Return Target - 234,360 233,856 176,465 125,917
Ending Balance 1,953,000 1,948,798 1,470,540 1,049,307 766,078
LP Return of Capital IRR Check: 12.00% (1,953,000) 238,562 712,114 597,698 409,146

Distributions to Sponsor - - - - -
Total Distributions - - - - -
Cash Flow Remaining - - - - -

Hurdle 3 Return Threshold- Up to: 15.00%


Beginning Balance - 1,953,000 2,007,388 1,596,383 1,238,142
Contributions from LP 1,953,000 - - - -
Prior Distributions to LP 238,562 712,114 597,698 409,146
Distributions to LP Hurdle 3 - - - -
Required LP Distriutions to hit Hurdle 2 Return Target - 292,950 301,108 239,457 185,721
Ending Balance 1,953,000 2,007,388 1,596,383 1,238,142 1,014,718
LP Return of Capital IRR Check: 15.00% (1,953,000) 238,562 712,114 597,698 409,146

Distributions to Sponsor - - - - -
Total Distributions - - - - -
Cash Flow Remaining - - - - -

Hurdle 4 Return Threshold- Greater than: 15.00%


Distributions to LP - - - - -
Distributions to Sponsor - - - - -
Total Distributions - - - - -
Cash Flow Remaining - - - - -
Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Dec-29

428,458 137,614 519,556 379,418 596,639 7,750,062


- - - - - -
428,458 137,614 519,556 379,418 596,639 7,750,062
21.94% 7.05% 26.60% 19.43% 30.55% 396.83%

47,606 39,427 305,136 222,833 350,407 4,551,624


- - - - - -
- - - - - -
47,606 39,427 305,136 222,833 350,407 4,551,624
21.94% 18.17% 140.62% 102.69% 161.48% 2097.52%

476,064 177,040 824,692 602,250 947,046 12,301,686

- - - - - -
-
- - - - - -
476,064 177,040 824,692 602,250 947,046 12,301,686
21.94% 8.16% 38.00% 27.75% 43.64% 566.90%

471,247 80,488 - - - -
- - - - - -
428,458 86,928 - - - -
37,700 6,439 - - - -
80,488 - - - - -
428,458 86,928 - - - -

- - - - - -
47,606 9,659 - - - -
476,064 96,586 - - - -
- 80,454 824,692 602,250 947,046 12,301,686

766,078 429,550 343,482 - - -


- - - - - -
428,458 86,928 - - - -
- 50,686 384,700 - - -
91,929 51,546 41,218 - - -
429,550 343,482 - - - -
428,458 137,614 384,700 - - -

- 29,768 225,935 - - -
- 80,454 610,635 - - -
- - 214,058 602,250 947,046 12,301,686

1,014,718 738,467 711,624 298,811 - -


- - - - - -
428,458 137,614 384,700 - - -
- - 134,856 343,633 - -
152,208 110,770 106,744 44,822 - -
738,467 711,624 298,811 - - -
428,458 137,614 519,556 343,633 - -

- - 79,201 201,816 - -
- - 214,058 545,449 - -
- - - 56,801 947,046 12,301,686

- - - 35,784 596,639 7,750,062


- - - 21,016 350,407 4,551,624
- - - 56,801 947,046 12,301,686
- - - - - -

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