
Excel model - Distribution scenario for Private Equity Fund - Waterfall
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Description
Experience Level: Expert
Description of excel work: I need an excel model to show a distribution waterfall projections for a private equity fund.
Model details below:
- Fund Size: $10Million
- Fee Structure: 2% Management Fee / 20% carried interest after 8% hurdle rate returned to investors
- GP Management fees generate $200K/yr (2% of $10MM fund) to be supplemented by additional $300K/yr by GP investor group.
- GP Investor group commits to cover GP Management expenses from $300K/yr up to $500K/yr for up to 3 years for a total of $1.5MM
- GP Investor group would also commit $3MM to the total $10MM of the LP portion.
- In return, GP Investor group would receive 100% of the 20% carried interest after the original principal + 8% hurdle is returned to LP investors.
- Then, the GP Management would "earn back" portions of this 20% interest gradually as they paid back the GP Investor group. (See attached waterfall scenario)
- I would like to model what the GP Investor group returns would look like shown in $ and IRR percentage after they are paid back 6x their initial GP invested capital and own 25% going forward.
Please let me know if this is something you can do. Time frame and cost.
Thank you!
Extra notes:
Model details below:
- Fund Size: $10Million
- Fee Structure: 2% Management Fee / 20% carried interest after 8% hurdle rate returned to investors
- GP Management fees generate $200K/yr (2% of $10MM fund) to be supplemented by additional $300K/yr by GP investor group.
- GP Investor group commits to cover GP Management expenses from $300K/yr up to $500K/yr for up to 3 years for a total of $1.5MM
- GP Investor group would also commit $3MM to the total $10MM of the LP portion.
- In return, GP Investor group would receive 100% of the 20% carried interest after the original principal + 8% hurdle is returned to LP investors.
- Then, the GP Management would "earn back" portions of this 20% interest gradually as they paid back the GP Investor group. (See attached waterfall scenario)
- I would like to model what the GP Investor group returns would look like shown in $ and IRR percentage after they are paid back 6x their initial GP invested capital and own 25% going forward.
Please let me know if this is something you can do. Time frame and cost.
Thank you!
Extra notes:
Robert C.
100% (2)Projects Completed
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Freelancers worked with
2
Projects awarded
50%
Last project
1 Dec 2017
United States
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