Tag Archives: Equity Investor Returns

New Feature! Special Treatment for Sale Proceeds in Equity Waterfalls

We are pleased to announce a new feature in Version 9.1 which allows for special treatment of the reversion (sale) proceeds withing the Equity Waterfalls. In prior models, the proceeds from the sale of the property were applied to the same Preferred Return and Cash Flow Hurdles.

Now, beginning in Version 9.1, you have the ability to select through a drop-down menu whether to include the sale proceeds as normal cash flow (as before), or to treat the sale Independently. If treated independently, you can then enter the percentage split that the sale will enjoy.
Cash Flow Distributions

An example of this scenario would be an agreement between a Developer and an Equity Investor in which the sale of the property will result in a 50/50 split of the proceeds, regardless of the status of the equity waterfalls from the cash flow. This can often be an incentive payment for the Developer for the successful completion of the project and project returns.

We hope you enjoy this new feature. Please be sure to use our Contact Page to recommend any new feature you would like to see included in future versions!