Private Equity Waterfall Distribution with GP Catch-Up Provision

One of the most common yet misunderstood components of private transactions is the waterfall distribution structure. Misunderstanding it leads to flawed waterfalls and misaligned incentives between the GP and LP; understanding it allows the GP to capture the value they create, maximize their promote, and convert strong execution into strong returns.

The presentation below presents a clear, institutionally grounded framework for structuring GP catch-up waterfalls.