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Fund Hurdle and Catch-Up Carry Scenario

Compare modeled partner distributions with and without full catch-up after a compounded hurdle.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A fund growing from 1000 to 1500 over one year with a 10% hurdle and 20% carry gives 80 without catch-up and 100 with catch-up.

Preferred balance = initial × (1+hurdle)^years; split = residual profit × carry fraction.

Worked example

Enter these known values and leave the other values blank.

Initial fund value
1000 USD
Final fund value
1500 USD
Hold period
1 yrs
Hurdle rate
10 %
Carried interest
20 %
Fund return
50 %

Assumptions and limitations

  • This simplified end-of-holding-period waterfall omits distributions, capital calls, fees, tax and legal agreement details.
  • Use a final value at least equal to the compounded preferred balance. Below-hurdle source formulas can produce negative carry; those scenarios are excluded from this numerical model.
  • Enter all monetary amounts in a single currency. Retained currency conversion factors are a captured static snapshot, not live exchange rates.
  • Clear a known field before solving for it. Locks retain chosen inputs; inconsistent locked values need correction. Reset restores the captured defaults.

Common questions

What does the worked example show?

A fund growing from 1000 to 1500 over one year with a 10% hurdle and 20% carry gives 80 without catch-up and 100 with catch-up.

What assumptions limit this calculation?

This simplified end-of-holding-period waterfall omits distributions, capital calls, fees, tax and legal agreement details.

References

Use the documented finite scenario domain. ini fund value must be positive. hold period must be positive. Carry fraction must be below 100 percent. Final value must meet the preferred-return balance. Use a nonnegative hurdle rate.

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