Carry Distributor
Model European vs American waterfall structures.
When GCC LPs allocate to US GPs (Private Equity, Venture Capital), the negotiation of the waterfall structure determines ultimate alignment. Sovereign entities increasingly demand co-investment rights to mitigate standard 2/20 fee drag.
The Hurdle Mechanic
A preferred return (hurdle rate) ensures the LP receives a baseline return (typically 8%) before the GP participates in carried interest (profit sharing). This tool models a simplified European waterfall (whole-fund basis).
| Structure | Advantage |
|---|---|
| European (Whole Fund) | Strong LP protection, delays GP carry. |
| American (Deal-by-Deal) | Faster GP payout, requires clawbacks. |
Waterfall Calculator
Whole-Fund Baseline Model
Total LP Distribution
$181.6M
Total GP Carry
$18.4M