Equity Waterfall Model
Who gets paid what, and when, once a project makes money.
- Type
- Excel model
- Version
- v1.96
- Updated
- Jun 2026
- Stage
- Structure the equity
- File
- Excel workbook (.xlsx), 409 KB
- Works in
- Microsoft Excel 2013 or newer, desktop
What it answers
- How is profit split between the sponsor and the other partners?
- What does each partner receive at each return hurdle?
- How do the splits change if the project runs late or sells for less?
What goes in
- Project cash flows, monthly or annual
- Each partner's share of the equity
- Preferred return
- Hurdles and splits
What comes out
- Distributions by partner and by tier
- IRR and equity multiple for each partner
- Sponsor promote
How we use it
It sets out the split in our joint ventures, including with landowners who put their land into a project instead of selling it.
Before you open it
- Use the desktop version of Excel. Excel for the web and other spreadsheet apps cannot run the parts of a model that use macros.
- On Windows, Excel blocks macros in any file downloaded from the internet and shows a red bar. Close the file, right-click it, choose Properties, tick Unblock and press OK, then open it again. If it came inside a zip, unblock the zip before you extract it.
- Read the Version tab first. It records the model's history and its authors. Leave it in place, unchanged, if you share the file.
Use and sharing
Free to use, adapt and share with anyone, as long as it stays free and its Version tab and credits stay in the file. Provided as is, for education. It is not investment, legal or tax advice, not an appraisal, and not an offer of any security. Any project figures in it are illustrative. Full terms, including credits, are in our Terms of Service.
Equity-Waterfall-Model-v1.96.xlsx · SHA-256 6bacc006f321d03ab3b858b7c56b881b792feec8dc77a2202e1de2a7e60564c2
Where it fits in our work
Often used with
Co-GP, JV & capital partners
Build With Us
We structure joint ventures with operating partners, co-GP sponsors, and capital partners who bring proven track records. Outline your firm and the partnership you have in mind.