Catch-up

Waterfall tier where the GP receives a higher share until they've 'caught up' to the promote split.

If LPs got 100% of cash flow during the pref tier, the GP is behind on their target promote share. A catch-up tier sends 50-100% of subsequent cash to the GP until the cumulative profit split matches the agreed promote ratio. Full (100%) catch-ups make the math more favorable to GPs; partial (50%) catch-ups balance the parties.