Promote
Promote (also known as "promoted interest" or "carried interest") is a term that refers to a share of profits that a sponsor or general partner (GP) earns, typically after a certain performance benchmark or return threshold has been met. Users can add a partnership structure as well as hurdle and catch-up tiers for equity distribution based on IRR and Equity Multiple options. See more detail about Promote Waterfall.
Properties
Equity
Enter the share of equity contributed by each partner.
| Name | Options | Description |
|---|---|---|
| Name | Name of the sponsor or general partner. | |
| Share | Add % share for each partner. | |
| Equity | Total equity will be saved from the last calculation. If the total equity is not given, equity totals must be provided for each partner. | |
| Include Promote | Only one partner can receive promoted interest. |
Tier
Enter the equity distribution for each tier.
| Name | Options | Description |
|---|---|---|
| Name | Name of the promote tier. | |
| Type | Hurdle Catch-up | |
| Method | IRR Multiple IRR or Multiple IRR and Multiple | |
| Amount | Field enabled with a IRR. | |
| Multiple | Field enabled with a Multiple. | |
| Promote | ||
| Partner |