Waterfall
also known as: distribution waterfall
How private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.
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The Distribution Waterfall, Explained →11 min read · waterfalls
Related terms
- 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.
- American WaterfallFund-level vs. deal-by-deal accounting, why each exists, and who each one favors.
- Carried InterestDefinitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.
- CarryDefinitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.
- Catch-UpFull vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.
- CatchupFull vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.
- European WaterfallFund-level vs. deal-by-deal accounting, why each exists, and who each one favors.
- GP Catch-UpFull vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.