ProFundraising · Simulator
PE Carry Waterfall Simulator
How fund profits split between LPs and the GP.
Assumptions
LP net MOIC
2.29x
GP carry
$20,613,438
LP total
$229,386,562
| Line | Amount |
|---|---|
| Total value | $250,000,000 |
| Return of capital (LP) | $100,000,000 |
| Preferred return (LP) | $46,932,808 |
| GP carried interest | $20,613,438 |
| LP total | $229,386,562 |
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Built by The Crimson Bench · Educational model, not financial advice
About the PE Carry Waterfall Simulator
Model a fund’s return through a preferred return and carried interest to see what LPs keep and what the GP earns.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the PE Carry Waterfall Simulator Works
The model takes 5 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Fund size | $100,000,000 |
| Gross return (MOIC) | 2.5 |
| Preferred return / yr | 8% |
| Carried interest | 20% |
| Fund life (years) | 5 |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
LP net MOIC
2.29x
GP carry
$20,613,438
LP total
$229,386,562
| Line | Amount |
|---|---|
| Total value | $250,000,000 |
| Return of capital (LP) | $100,000,000 |
| Preferred return (LP) | $46,932,808 |
| GP carried interest | $20,613,438 |
| LP total | $229,386,562 |
The Operator's Read
LPs get their capital plus a preferred return before the GP earns carry — that hurdle protects investors. The carry only kicks in on profits above it, aligning the GP to actually outperform. Educational only.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the PE Carry Waterfall Simulator calculate?
Model a fund’s return through a preferred return and carried interest to see what LPs keep and what the GP earns. It takes 5 assumptions — Fund size, Gross return (MOIC), Preferred return / yr, Carried interest, Fund life (years) — and returns LP net MOIC, GP carry, LP total, along with a full projection table you can export.
How do I use the PE Carry Waterfall Simulator?
Enter your own figures in the input fields above — Fund size, Gross return (MOIC), Preferred return / yr, and the rest. The model recalculates instantly and shows the resulting LP net MOIC and full breakdown. No sign-up needed to run it.
Is the PE Carry Waterfall Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the PE Carry Waterfall Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The PE Carry Waterfall Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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The Crimson Bench · Est. 2002 · Founded in New York City
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