Waterfalls
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  • Waterfall 202 - Catch Up Template
    The Catch Up Template is commonly used where a Managing Member Class or GP Class is entitled to receive funds from the general Members or LP’s in the Project after those members have received a predetermined amount of cash which can be one stream ...
  • Waterfall 202 - Custom Template
    The Custom Template is the primary template to use for a simple Pro-Rata calculation and may be used for other one-off calculations that are not covered by other templates, which is rare.  Pre-Conditions For Use: None   The screen shot below shows...
  • Waterfall 202 - IRR Template
    The Internal Rate of Return or IRR template is designed to direct cash flow to one or more classes until each Investment in such class has received an IRR of a specified percentage.  The IMS system uses XIRR in this calculation which mirrors the c...
  • Waterfall 202 - Preferred Return Template
    The Preferred Return template is designed to calculate preferred returns due to investors of one or more classes in a Project at a rate set for that class.  By default, the system calculates Preferred Returns at an Investment level and uses the la...
  • Waterfall 202 - Return of Capital Template
    The Return of Capital template is designed to direct distribution cash to the return of capital bucket for one or more classes. Pre-Conditions For Use: None   The screenshot below shows the two required fields for input to utilize the template: In...
  • Waterfall 202 - Splits Template
    The Splits Template allows users to split the available cash flow to two or more classes at different percentages.  Use this template if you are splitting all remaining cash flow in a distribution batch that is not subject to hurdles and further s...
  • Waterfall 202 - Splits with Hurdles Template
    The Splits with Hurdles Template allows users to split distribution cash flow similar to the Split Template, but now adding in a hurdle rate to end the rule.  The IMS system currently supports hurdles based on IRR, Equity Multiple, Return of Capit...
  • Waterfall Projections
    Overview: Waterfall Projections are a tool Sponsors can use to create hypothetical waterfalls and distributions before sharing with investors. The article below walks users through the page navigation.    Projections – Index Page: This is where th...
  • Waterfall Projections FAQ
    Q: Can the proforma waterfall make any assumptions (for example that all pref was paid current as of the date I specify) A: Projections will only look at information that is already in the system when calculating. For example, if the waterfall rul...
  • Waterfalls 101 - Getting Started
    The IMS Waterfall module provides a rule-based engine that allows Real Estate Sponsors to calculate distribution amounts due to investors.  The system allows the user to set multiple rules sets at an Entity level, and then combine them into a Proj...
  • Waterfalls 102 - Adding Rules
    You will now be prompted to add your first rule that is applicable to this Waterfall.  Name your rule, and if desired add your Operating Agreement Section description.  Then select the template, that best describes the calculation you need to perf...
  • Waterfalls 201 - Project Level Waterfalls
    Before building a Project Level Waterfall, you will want to ensure the following: All entities that you want to tie into the Project Level Waterfall have an entity level Waterfall created. You will want to ensure that this Entity level ruleset ha...
  • Waterfalls 202 – Template Explanation and Rules Calculations
    The IMS Waterfall Module provides a powerful tool for users to apply simple to complex calculations found in Private Equity transactions in a consistent manner without worrying about burdensome Excel files that can add risk to your organization if...