A schedule typically described in the SPV documents of how investor distributions are calculated. Typically broken up into tiers at either the SPV level or investment level that must be satisfied before Carried Interest is paid to the Organizer. Tiers often consist of the following phases: Return of Capital, Preferred Return, Catch-up, and Carry. Venture funds, private equity funds, and hedge funds typically have far more complex waterfall structures than does a traditional SPV. A waterfall calculation is also typical at the investment level, meaning the asset the SPV invests into has a waterfall.
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