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You partner with an Institutional LP that requires a cumulative waterfall structure. The institution invests $ 9 8 0 , and MP invests $ 2

You partner with an Institutional LP that requires a cumulative waterfall structure. The institution invests $980, and MP invests $20.
Tier 1: IRR 0-7% LP gets 100% of cash flow
Tier 2: IRR 7-10% MP gets 10% promotion, with balance split pari-passu
Tier 3: IRR 10%+ MP gets 20% promotion, with balance split pari-passu
What does the cash flow in Year 4 have to be for the MP to earn double the institution IRR for the given set of cash flows, Year 1 $70, Year 2 $80, Year 3 $90, Year 4 TBD?

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