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Waterfalls & Promotes

Course Length — 2 weeks

CPD Hours — 7

Course Level — Intermediate - Advanced

Mentoring — 3 months access to monthly group hot-seat call

Price — £497

The Equity: Waterfalls & Promotes course unveils the intricacies of complex capital structures and teaches you how to expertly model and analyse them.

We instruct you on constructing a multi-tiered IRR and Equity Multiple Waterfall, both in a Pari Passu and Catch Up framework, and presenting it visually enabling you to make informed negotiation decisions.

Upon completion of this course, you’ll be able to model multi-tiered Waterfalls, and confidently analyse and negotiate Promote terms like a true pro. 

Learning Objectives

By the time you’ve finished this course, you'll be able to do the following with confidence.

  • Understand what waterfalls and promotes are and how they work
  • Be able to model a multi-hurdle waterfall
  • Be able to model a waterfall & promote using Pari Passu and Catch Up method
  • Be able to display a promote graphically and be able to use this for decision making
  • Learn key Excel features such as functions, graphs and shortcuts

Other Extras

Along with the learning objectives listed above, you’ll also receive the following.

  • Understand Joint Ventures
  • 3-tiered Equity Multiple & IRR waterfall
  • Understand Graphs
  • 50 Excel Shortcuts
  • Lifetime Access

Course Modules

Understanding Waterfalls & Promotes



Study Time
Video Length
Course Level

30 Minutes
11 Minutes

What to Expect

When a property deal involves co-investment or is a joint venture, a waterfall or promote structure is usually agreed between the two parties. This module will define what waterfalls and promotes are and how they work.

  1. The Fundamentals
  2. Definitions
  3. Questions

Modelling Waterfalls & Promotes



Study Time
Video Length
Course Level

4 Hours
1 hr 25 mins
Beginner >

What to Expect

This module will show you how to model a waterfall looking at different investor equity shares and modelling multi-tiered IRR and equity multiple hurdles.We will show you how to model a pari passu promote and catch up promote.

  1. IRR Hurdle
  2. Equity Multiple Hurdle
  3. Combining IRR and Equity Hurdles
  4. Catch Up

Debt: Set Up



Study Time
Video Length
Course Level

0.5 Hours
4 minutes

What to Expect

Now that you understand the debt fundamentals, it’s time to lay out all the debt assumptions and set up the different loans so that they can be easily modelled. As Excel experts, we know that layout and formatting are a number one priority.

  1. Debt Assumptions
  2. Loan Years
  3. Beginning and End of Period Balances
  4. Different types of Investors
  5. Understanding a Sales Brochure
  6. Understanding a Lease
  7. Understanding a Tenancy Schedule

Analysing Promotes



Study Time
Video Length
Course Level

1 Hour
15 Minutes

What to Expect

It’s always helpful to be able to compare promotes and see how they are impacted if your returns change, so, in the final module of this course, we’ll be showing you how to display your promote graphically and analyse what it shows.

  1. How to analyse a Waterfall & Promote
  2. Creating a Promote Graph

“I am always doing that which I  cannot do, in order that I may learn how to do it.”


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