Entity architecture, waterfalls, fees, LP/LLC, economics.
The Core Difference Between Syndication Fees and the Promote Sponsors get paid in two very different ways, and people constantly mix them up. Operational fees pay the sponsor for the work of running the business. The promote – also called carried interest – is the sponsor’s share of the upside,
The Waterfall Is a Legal Framework, Not Just a Spreadsheet A distribution waterfall is the binding hierarchy written into your Operating Agreement that dictates how and when cash flows to the sponsor and the limited partners. It is a legal document, not a financial one. The spreadsheet describes what you
