Waterfalls Usually Consists Of Four Buckets/Phases: Fund Accounting Distribution Waterfall
Return of Capital – 100% of profits are distributed to the investors until the total amount of their contributed capital is returned. - Preferred Return – 100% of profits are distributed to the investors until a predetermined annual rate (a preferred return) is reached (usually 7-9%). - Catchup – 100% of profits are distributed to the manager to “catch up” to management’s contractual performance fee or carried interest (typically 20%) - Carried Interest – a stated percentage of profits is distributed to the manager rewarding performance (typically 20%) with the remainder distributed to the investors (typically 80%). Read More: Fund Accounting 101: Distribution Waterfalls Contact Details: sales@phxa.com 415-485-4500 2401 Kerner Blvd, San Rafael, CA 94901, United States Fund Accounting Service Visit Reference Profile Websites: Fund administrator https://bit.ly/3vGzrTN https://bit.ly/3vHDdw5 https://bit.ly/3vLp1SG https://bit.ly/3xTgnDw https://bit.ly/3tccy90 https://bit.ly/3uanZiY