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Capital · Waterfall
The equity waterfall — every dollar, traced
Homewood Suites · 5-yr hold · 8% cumulative pref · 80/20 promote
| Step | Available | To LP | To Sponsor | Cum. LP |
|---|---|---|---|---|
| ROC (LP) | $6,600,000 | $5,940,000 | $660,000 | $5,940,000 |
| Pref paid | $2,376,000 | $2,376,000 | — | $8,316,000 |
| Catch-up (sponsor) | $642,062 | — | $642,062 | $8,316,000 |
| Promote (80/20) | $4,494,437 | $3,595,550 | $898,887 | $11,911,550 |
TotalsLP $11,911,550 · Sponsor $2,200,950 · split 84.4 / 15.6
Cash by tier
LP 84.4%GP 15.6%
ROCPrefCatch-upPromoteTo sponsor
$300K ticket
15.76%2.04x
LP IRR · equity multiple
Payback Yr 5$312,000 profit
16.3% stabilized cash-on-cash
$500K ticket
15.76%2.04x
LP IRR · equity multiple
Payback Yr 5$520,000 profit
16.3% stabilized cash-on-cash
$1.00M ticket
15.76%2.04x
LP IRR · equity multiple
Payback Yr 5$1,040,000 profit
16.3% stabilized cash-on-cash
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