Professional Documents
Culture Documents
Cash Flow Waterfall
Cash Flow Waterfall
http://www.globaliconnect.com/exc
Annual IRR Investor Developer
Equity Contribution 90% 10% Mthly IRR
Waterfall:
Preferred Return
Total CF Available CF to Investor at CF Available CF to Developer at
Month Cash Flow to Investor Preferred Return to Developer Preferred Return
he pref yield is split "equally" ie. proportional to their respective equity contributions.
preferred return rate, ie. until each receives a 11% annual yield.
15.00%
es 65% of the monthly cash flows until the Investor achieves 15% IRR.
Waterfall Model:
18.00% - The waterfall assumes two parties who split cash flows based on a "waterfall
s until the Investor achieves 18% IRR. - The waterfall is really IRR hurdles which determine how cash flows at each le
- The waterfall structure is a typical real estate capital structure where the deve
24.00% - The primary investor sets progressive target yields (IRRs) as hurdles.
s until the Investor achieves 24% IRR. - The Developer typically receives a disproportionate share of the cash flow af
as the "promote." The fact that the developer is no longer pari-passu above
- Enter fields marked in blue font, yellow cells, ONLY. All mandatory.
- One or more -ive values (investments) are followed by +ive values (cash flow
- To skip a particular hurdle, enter zero values. The model is dynamic and ame
- To help us improve this model, please send your feedback to info@globalico
Hurdle 1 Hurdle 2
Balance - Post CF Available CF to InvestorAddl CF to DeveloperCF to Developer Balance - Post CF Available
Preferred Return to Investor at Hurdle 1 at Hurdle 1 at Hurdle 1 Hurdle 1 to Investor
Hurdle 2 Hurdle 3
CF to InvestorAddl CF to DeveloperCF to Developer Balance - Post CF Available CF to InvestorAddl CF to Developer
at Hurdle 2 at Hurdle 2 at Hurdle 2 Hurdle 2 to Investor at Hurdle 3 at Hurdle 3