Free fund economics visualizer
Carry Waterfall Visualizer
Trace distributions from return of capital through preferred return, catch-up, and residual carried interest.
Educational simplification only. Real LPAs, tax treatment, and distribution mechanics vary materially.
LP distribution
$196.0M
GP distribution
$24.0M
LP MOIC
1.96x
GP profit share
20.0%
Proceeds allocated by tier. Real LPAs can differ materially.
| Tier | To LP | To GP | Remaining |
|---|---|---|---|
| Return of capital (LP) | 100 | 0 | 120 |
| Preferred return (LP) | 46.9 | 0 | 73.1 |
| GP catch-up | 0 | 11.7 | 61.3 |
| Residual to LP | 49.1 | 0 | 0 |
| Residual carry to GP | 0 | 12.3 | 0 |
Educational caveat
Real LPAs vary by preferred-return calculation, catch-up design, distribution basis, clawbacks, fees, and tax treatment. Use the governing documents and professional advice for real fund distributions.
Method
A private equity carry waterfall sets the order in which sale proceeds are distributed between limited partners and the general partner. This educational visualizer follows a simplified whole-fund American-style sequence: return capital to LPs, pay a preferred return, pay the GP catch-up, then split residual proceeds.
Enter invested capital, exit proceeds or MOIC, hold period, preferred return, carry rate, and catch-up rate. The calculator allocates each dollar of proceeds through the sequence and reports LP distributions, GP distributions, LP MOIC, and GP share of profit.
1. Return capital
Distribute invested capital to LPs first, subject to available proceeds.
2. Pay the preferred return
Allocate the accrued hurdle to LPs before carry.
3. Apply GP catch-up
Allocate the defined catch-up portion to the GP.
4. Split residual proceeds
Distribute the remaining proceeds according to the carry rate.
Carry economics are central to aligning a private equity manager with investors, but the details are highly negotiated. A preferred return gives LPs priority over profit before carry begins. A catch-up may then direct proceeds to the GP until the agreed carry sharing relationship is reached. Remaining value is split according to the carry rate. This visualizer uses a deliberately simple framework so the ordering is visible. Change the hold period or preferred return to see how much of a mid-MOIC outcome is still trapped in the hurdle before GP economics appear. Change catch-up to see how quickly the GP reaches a full carry share after the pref is met. Real limited partnership agreements vary in hurdle compounding, catch-up mechanics, deal-by-deal versus whole-fund calculations, escrow, clawbacks, fees, recycling, GP commitments, and tax treatment. An LPA controls in an actual fund, and legal or fund-administration review is required for any real distribution. Treat this page as an educational map of the sequence, not an LPA calculator.
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Educational simplification only. Real LPAs, tax treatment, and distribution mechanics vary materially.