Promote Sensitivity to the Exit Cap Rate
This lesson is part of the course
In this lesson
You run the year-5 waterfall for six exit cap rates, value the GP's promote in each, and chart how fast it grows as the cap rate falls.
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Lessons in this course
- Deal Cash Flows & the Levered IRR Locked
- 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