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Distribution Waterfall Calculation demo

Runs and checks carried interest and distribution waterfalls from the LPA for fund finance 1:34

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Runs and checks carried interest and distribution waterfalls from the LPA for fund finance

Each distribution is poured through its waterfall, drawn as four buckets: return of capital, preferred return, GP catch-up and the carried interest split. Each bucket fills in turn with its dollar amount, its LPA clause and the LP and GP shares, and a clawback gauge beside it tracks interim carry against the whole-fund result. The Terms agent reads the LPA, amendments and side letters in any language into a cited term table; the Model agent runs the waterfall on its own from those terms and the capital ledger; the Diff agent compares it tier by tier with the administrator's model, reads the formulas and explains each gap; the Clawback agent tests carry every quarter; the Allocation agent splits it across every LP; the Notice agent drafts the notices; the Evidence agent builds the pack. Fund finance prepares, the controller checks, the GP CFO signs, investor relations releases.

Transcript

  1. Distribution Waterfall Calculation checks every carry waterfall against the LPA for fund finance.
  2. Most run in spreadsheets.
  3. The SEC has cited advisors for overcharge and carry.
  4. Controller Grace Whitfield. Fund 3 distributes $48 million.
  5. The Model agent runs it independently.
  6. Each bucket fills, cited to its clause.
  7. The Administrator pays $3.1 million.
  8. The Model agent runs it independently.
  9. Each bucket fills, cited to its clause.
  10. The Administrator pays $3.1 million.
  11. million of catch-up.
  12. The diff agent compares.
  13. Why? Section 9.1b compounds yearly.
  14. The administrator's formula does not.
  15. Clause beside formula. $412,000 belongs to the investors.
  16. Grace checks. GPCFO Daniel Price signs the correction with a reason code.
  17. Investor relations releases the notices.
  18. two payments stay held every figure cited every decision signed and logged in one evidence pack four hundred twelve thousand dollars corrected
  19. before payment and review becomes one exception list built on Botminds agents data screens and governance on one platform

Transcribed from the film’s narration. Captions are on the player.