Commercial Real Estate Private Equity Pure Edge Computation

Multifamily Real Estate Syndication Waterfall & Promote Calculator

Model commercial real estate private equity distribution waterfalls. Evaluate LP preferred return hurdles, sponsor promote carried interest, cash-on-cash yield, and project equity multiples.

Formula: LP Distribution = LP Invested Capital + Annual Preferred Return + ((Exit Proceeds - Capital) * (1 - Promote %))

Model Parameters

Total Equity Capital Invested ($)

Total combined equity raised from Limited Partners (LPs) and General Partner (GP).

Limited Partner (LP) Equity Share

Percentage of total project equity contributed by passive LP investors (typically 80% to 95%).

Annual Preferred Return Hurdle

Annual cumulative preferred return paid to LP investors before sponsor promote participation.

Annual Distributable Property Cash Flow ($)

Net cash flow from operations available for periodic equity distributions.

Exit / Refinance Net Capital Proceeds ($)

Net capital proceeds generated upon property sale or cash-out refinancing.

GP Carried Interest Promote Split

Sponsor carried interest percentage earned on profits exceeding the preferred return hurdle (e.g. 20% in an 80/20 split).

Outputs & Underwriting Summary

Calculation Status

SYNDICATION WATERFALL PROFITABLE

Verified Model

Limited Partner (LP) Equity Multiple

1.46x MOIC

Annualized Simple ROI: 9.19%/yr | LP Net Profit: $827200.00

Total LP Distributions

$2627200.00

LP Initial Equity: $1800000.00 | Cumulative Pref: $144000.00

General Partner (GP) Promote & Waterfalls

$392800.00 total GP distributions

GP Invested: $200000.00 | GP Profit: $192800.00 | 8.0% Preferred Return / 20.0% Promote

In an 80/20 syndication promote structure with an 8.0% preferred return, Limited Partners contributing $1,800,000.00 receive $144,000.00/yr in priority hurdle distributions. Upon capital event exit ($2,800,000.00 proceeds), total LP cumulative distributions reach $2,627,200.00, delivering a 1.46x equity multiple alongside $392,800.00 in GP co-investment and carried interest promote.

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