Custom Waterfall

Waterfall technology, along with GP functionality, are all areas of the system that you can use on the LemonEdge Alternative Assets Solution. You don't need proprietary in-house systems (or excel) built around your solution to facilitate event processing. You can make those algorithms part of your solution no matter how specific to you they are.

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Making the complex. Simple

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Waterfall Algorithms

The system comes with the ability to integrate custom waterfall calculations into the capital event processing functionality of the fund. There are two default algorithms included in the solutions; Fund Level Waterfall, and Lot Level Waterfall. These include the ability to run on top of the Capital Event Processing (See Fund Administration for more info) and automatically post the results of the calculation as capital transactions against the event itself.

At each stage of the calculation, you have several abilities to see granular detail, by the investor, on how the calculations are arrived at for verification or troubleshooting purposes. No part of this is a black box. You can also create adjustments at each stage for the purposes of altering the character of the calculation as it flows through your waterfall process.

Lot Waterfall
Calculation Engine

  • Capital Expenses

  • LTD Carry Ledger

  • LTD Carry Fund

  • Recycling

    • ROC/Gain/Income From CI

    • From Expenses

The key feature of our Lot Level Waterfall Calculation Include:

  • Investor Cashflows

  • Current Cashflow

  • Preferred Return

  • Realized %

  • PNL

  • Income

  • Preferred Return Total

 
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Fund Waterfall
Calculation Engine

The key features of our Fund Waterfall Calculation Engine include:

  • Investor Cashflows

  • Total Proceeds

  • Return of Commitment

  • Distributable Profit

  • Total Investor Return

  • LTD Carry

  • Catchup Tiers

Ultimate Flexibility

You can customise the waterfall calculations to meet your needs. However, we recognise that no two waterfalls are alike and you'll always require bespoke processes for your proprietary waterfall algorithm. As such the real power of our waterfall technology is the ability for you to take your own processes and hook that into our Capital Event Processing engine.

  • Unlimited rules and algorithms

  • Simple formula engine to complex .net algorithms

  • The ability to take an algorithm and set it up as your own "Waterfall Calculation" which can be selected to be used for capital event processing along with our default waterfalls.

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What if analysis?

Capital event processing, waterfall calculations and your custom algorithms are a powerful combination of tools to ensure your data is processed the way you desire in a system with all the benefits that come with it. This functionality in itself would be incredibly powerful, but combined with our platform and our revolutionary Canvas technology all these processes really come to life, providing you with real and instant value to your questions.

 
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What if you held back carry across certain lots/deals?

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What if you didn’t distribute certain lots right now on this event?

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What would have happened to your carry if the distribution had been 10% higher?

 

These, and a hundred other questions, can now actually be answered in real-time. Simply create a canvas, make the changes, re-run your proprietary waterfall calculation and see! The more of your algorithms and custom process you incorporate onto the LemonTree platform, the more value it instantly provides right back to you.

See our Canvas technology for more information.

 Full Accounting Capabilities