Waterfall complexities
Fund-as-a-whole, deal-by-deal, European or US model, whichever way you look at the distribution waterfall, it demands a multitude of decisions. And it seems modifications to the structure are only increasing. But given the crucial role the waterfall plays – namely ensuring alignment – what are the most important factors to consider when building your own?
The distribution waterfall is the lynchpin of the private equity model.
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