FortisWaterfall Engine
IRR HURDLES · MULTI-TIER PROMOTEEquity & preferred return
LP share of equity
%
Preferred return
%
Promote tiers
TierHurdle IRRLP above
1 · pref
%
%
2
%
%
3
%
%
4
%
%
Net cash flow to equity
One value per period. Period 0 negative (equity in). Paste a column from Excel.
7 periods · equity $10,000,000
Profit split · $8,235,000 total
LP profit $7,078,834GP profit $1,156,166
Cash flow cascade
Visualize the waterfall as a cascade
See equity flow down through every tier, splitting into LP and GP streams sized to your dollars. Ideal for LP memos & committee decks.
Distribution ledger
| Period | Property CF | LP Dist | GP Dist |
|---|---|---|---|
| 0 (close) | ($10,000,000) | ($9,000,000) | ($1,000,000) |
| 1 | $650,000 | $585,000 | $65,000 |
| 2 | $700,000 | $630,000 | $70,000 |
| 3 | $760,000 | $684,000 | $76,000 |
| 4 | $815,000 | $733,500 | $81,500 |
| 5 | $875,000 | $787,500 | $87,500 |
| 6 | $14,435,000 | $12,658,834 | $1,776,166 |
| Total dist | — | $16,078,834 | $2,156,166 |
European whole-deal waterfall. Tier 1 pays preferred return (compounding) pari passu, then returns capital; residual cascades through promote tiers. Returns solved by Newton-Raphson IRR with bisection fallback. Verify against your own model before relying on outputs.