Tiers 2 & 3: the Promote at 12 % and 15 % IRR Hurdles
This lesson is part of the course
In this lesson
You size each LP IRR hurdle in the sale year, cascade the year-5 cash through four tiers with rising GP splits, and measure the LP's IRR after the promote.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Deal Cash Flows & the Levered IRRFree
- Return of Capital & the Compounding Preferred Return Locked
- Tier 1 to an 8 % IRR Hurdle: the Hurdle Balance Locked
- Tiers 2 & 3: the Promote at 12 % and 15 % IRR Hurdles Locked
- IRR Hurdles vs Equity Multiple Hurdles Locked
- GP Promote Value & the Effective GP Share Locked
- Promote Sensitivity to the Exit Cap Rate Locked
- American vs European Waterfall Timing (Simplified) Locked