American Waterfall
also known as: european waterfall
Fund-level vs. deal-by-deal accounting, why each exists, and who each one favors.
Read the full explainer
European vs. American Waterfall →7 min read · waterfalls
Related terms
- European WaterfallFund-level vs. deal-by-deal accounting, why each exists, and who each one favors.
- Claw-BackWhen clawbacks trigger, how escrow vs. personal-guarantee structures differ, and what 'after-tax' clawback really means.
- ClawbackWhen clawbacks trigger, how escrow vs. personal-guarantee structures differ, and what 'after-tax' clawback really means.
- Deal-By-Deal CarrySame trade-off as European vs. American waterfalls, framed from the GP's compensation perspective.
- Distribution WaterfallHow private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.
- WaterfallHow private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.
- Whole-Fund CarrySame trade-off as European vs. American waterfalls, framed from the GP's compensation perspective.