Syndication Waterfall Calculator

A waterfall distribution structure determines how profits flow between LPs (limited partners) and GPs (general partners/sponsors). Distributions flow in order: (1) Return of capital — LPs receive 100% of their original investment back first; (2) Preferred return — LPs receive their accrued preferred return; (3) Promote tiers — remaining profits are split between LPs and GPs according to the promote schedule, with the GP's share increasing at higher IRR hurdles. This model uses a simplified American-style waterfall. Actual deal waterfalls may include catch-up provisions, lookback features, clawback clauses, and GP co-investment that affect distributions. Always review the actual Operating Agreement and PPM for the specific deal terms.