Syndicator Waterfall Calculator

LP/GP distribution waterfall with preferred return, catch-up, and promote splits. Models annual distributions and computes both IRR and equity multiple for each party.

LP & GP returns

LP IRR

10.09%

GP IRR

20.11%

LP equity multiple

1.55×

GP equity multiple

2.50×

LP profit

$550,000

GP profit

$150,000

GP earned 21.43% of total deal profits.

Year-by-year distributions

Year	Cash to distribute	To LP	To GP	Unpaid pref
Year 1	$60,000	$60,000	$0	$20,000
Year 2	$60,000	$60,000	$0	$40,000
Year 3	$60,000	$60,000	$0	$60,000
Year 4	$60,000	$60,000	$0	$80,000
Year 5	$1,560,000	$1,310,000	$250,000	$0

How to read a waterfall

Most syndications follow a tier-based distribution: first the LP gets their preferred return (typically 7-9% on their unreturned capital), then the GP "catches up" to the promote split, then remaining profits split between LP and GP (often 70/30 or 80/20).

The promote is the GP's share above the pref — it's how sponsors get paid for outperformance. A "70/30 over an 8% pref with full catchup" means LP gets pref, GP catches up, then 70/30 above. Easy to misread.

Single-tier promote model. Multi-tier IRR hurdles (e.g., 70/30 to 12% then 60/40 to 18%, then 50/50) are simplified to the lowest tier for tractability. For a fully accurate multi-tier model, plug exact cash flows into Excel and verify.

Syndicator Waterfall Calculator

LP & GP returns

Year-by-year distributions

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How to read a waterfall