Waterfall with Catch-Up and Clawback
The terms that decide whether a split is still fair when a deal does very well, or not so well.
- Type
- Excel model
- Version
- v1.71
- Updated
- Dec 2024
- Stage
- Structure the equity
- File
- Excel workbook (.xlsx), 171 KB
- Works in
- Microsoft Excel 2013 or newer, desktop
What it answers
- When does the sponsor catch up to its share of the profit?
- How much must the sponsor give back if later results fall short?
- What do fees do to each partner's return?
What goes in
- Project cash flows
- Preferred return and hurdles
- Catch-up percentage
- Clawback terms
- Fees
What comes out
- Distributions by partner
- Catch-up and clawback amounts
- Returns before and after fees
How we use it
We use it to show a partner exactly how a proposed catch-up would play out before anyone signs.
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-Catch-Up-Clawback-v1.71.xlsx · SHA-256 4681d49a3d1f93a9c7de4a7154fa506364ae8420652f2fa84ad6e3171ed32c44
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.