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Please help me create a distribution waterfall model using this data. Thanks! Investors Joe Bob Cathy Total 2,000,000.00 300,000.00 3,200,000.00 5,500,000.00 Investment Date 7/1/21 Distibutions
Please help me create a distribution waterfall model using this data. Thanks!
Investors Joe Bob Cathy Total 2,000,000.00 300,000.00 3,200,000.00 5,500,000.00 Investment Date 7/1/21 Distibutions # 1 2 3 4 5 6 Date 9/28/21 12/24/21 3/20/22 6/12/22 9/5/22 11/30/22 3/2/23 6/4/23 8/31/23 12/1/23 3/5/24 6/9/24 Amount 38,125.00 40,625.00 38,750.00 38,750.00 44,375.00 43,125.00 38,750.00 41,875.00 48,750.00 40,000.00 45,625.00 43,125.00 2.8% 3.0% 2.8% 2.8% 3.2% 3.1% 2.8% 3.0% 3.5% 2.9% 3.3% 3.1% 7 8 9 10 11 12 Exit Sale Selling Price Outstanding Debt Closing Costs 24,709,700.00 16,376,000.00 3% Sale Date 7/29/24 Waterfall Structure Preferred Rate Hurdle #2 Hurdle #3 7% 15% 20% Promote 0% 20% 30% Questions: 1 What sale price should be to hit _% Project IRR? a) 7% b) 15% c) 20% 2 What is the present value of cash flow at _% discount rate? a) 7% b) 15% c) 20% 3 What should sale prices be for LP investors to hit _% IRR? a) 7% b) 15% c) 20% 4 How much promote will the GP be getting? 5 Do you think this project is good or bad financially? Investors Joe Bob Cathy Total 2,000,000.00 300,000.00 3,200,000.00 5,500,000.00 Investment Date 7/1/21 Distibutions # 1 2 3 4 5 6 Date 9/28/21 12/24/21 3/20/22 6/12/22 9/5/22 11/30/22 3/2/23 6/4/23 8/31/23 12/1/23 3/5/24 6/9/24 Amount 38,125.00 40,625.00 38,750.00 38,750.00 44,375.00 43,125.00 38,750.00 41,875.00 48,750.00 40,000.00 45,625.00 43,125.00 2.8% 3.0% 2.8% 2.8% 3.2% 3.1% 2.8% 3.0% 3.5% 2.9% 3.3% 3.1% 7 8 9 10 11 12 Exit Sale Selling Price Outstanding Debt Closing Costs 24,709,700.00 16,376,000.00 3% Sale Date 7/29/24 Waterfall Structure Preferred Rate Hurdle #2 Hurdle #3 7% 15% 20% Promote 0% 20% 30% Questions: 1 What sale price should be to hit _% Project IRR? a) 7% b) 15% c) 20% 2 What is the present value of cash flow at _% discount rate? a) 7% b) 15% c) 20% 3 What should sale prices be for LP investors to hit _% IRR? a) 7% b) 15% c) 20% 4 How much promote will the GP be getting? 5 Do you think this project is good or bad financiallyStep by Step Solution
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