Carried Interest & Fund Return
Waterfall Simulator
Institutional modeling of GP/LP distribution waterfalls for Private Equity, VC, and Family Offices. Quantify Return of Capital, Preferred Return (Hurdle Rate), GP Catch-Up mechanisms, 80/20 Carried Interest splits, Net IRR, MOIC (TVPI), and Clawback exposure under Invest Europe and ILPA standards.
ILPA Waterfall Distribution Ledger
Tier 1: Return of Capital
100% of proceeds flow to LPs until drawn capital and fees are fully returned.
Tier 2: Preferred Return (8.0% p.a. Hurdle)
LPs receive their preferred return hurdle before any GP carry distribution.
Tier 3: GP Catch-Up (100% Fast-Track)
100% of incremental cash flows to GP until carry reaches 20% of aggregate profits.
Tier 4: Carried Interest Split (80% LP / 20% GP)
All residual proceeds distributed 80% to LPs and 20% to GP.
| Gross Multiple | Gross Proceeds | LP Net MOIC | LP Net IRR | LP Proceeds | GP Carry |
|---|---|---|---|---|---|
| 1.00x | € 150.0M | 1.00x | ~0.0% | € 150.0M | € 0.0M |
| 1.25x | € 187.5M | 1.25x | ~4.6% | € 187.5M | € 0.0M |
| 1.50x | € 225.0M | 1.47x | ~8.0% | € 220.4M | € 4.6M |
| 1.75x | € 262.5M | 1.60x | ~9.9% | € 240.0M | € 22.5M |
| 2.00x | € 300.0M | 1.80x | ~12.5% | € 270.0M | € 30.0M |
| 2.50x | € 375.0M | 2.20x | ~17.1% | € 330.0M | € 45.0M |
| 3.00x | € 450.0M | 2.60x | ~21.1% | € 390.0M | € 60.0M |
| 3.50x | € 525.0M | 3.00x | ~24.6% | € 450.0M | € 75.0M |
| 4.00x | € 600.0M | 3.40x | ~27.7% | € 510.0M | € 90.0M |
In European whole-fund models, LPs receive 100% of invested fund capital + preferred return before GP takes any carry, eliminating clawbacks. In American deal-by-deal models, GPs take carry on early winners but face clawback liabilities if later deals underperform.
No acute clawback exposure detected. Distribution cascade securely satisfies LP hurdle claims.
Launch Fund Structuring & LPA Advisory
AME Straticon advises family offices, PE/VC funds, and institutional GPs/LPs on structuring LPA waterfalls, co-investment vehicles, and carried interest governance.
Structuring a Private Equity or Venture Capital Fund?
Our fund experts advise on LP/GP negotiations, hurdle rate structuring, and LPA clause verification.
Cross references