A Downloadable Returns Waterfall Model Prioritizing Simplicity and Clarity
There seem to be nearly as many waterfall models out there as there are capital allocators.
We’ve seen everything from simple, single-tier structures to complex eight-tier models with intricate catch-up provisions.
Building these models is challenging, and explaining them can be even more challenging.
We decided to build our own waterfall model prioritizing simplicity and clarity. Our goal was to create a clear, visual explanation of how different waterfall scenarios work — how money flows through each tier, and how changes to hurdles and splits affect outcomes.
It’s not the most robust model out there, but it might be the easiest to follow.
You can download it here: Link to Waterfall
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