Why do Some Real Estate Syndication Deals Use GP Catch-ups?

In real estate syndication deals, profit distribution between the general partner (GP) and limited partners (LPs) is a critical aspect of the investment structure. A GP catch-up is a provision that allows the GP to receive a disproportionate share of profits after the LPs receive their preferred return, effectively "catching up" to the agreed profit split. Some deals include this mechanism, while others do not. The inclusion or exclusion of a GP catch-up depends on various factors, including negotiation dynamics, market conditions, and the desired alignment of incentives between the GP and LPs.

Preferred Return Model with Optional Split During Preferred Return Phase

As you likely know by now, I've done many different joint venture cash flow waterfall templates over the years. This is often for real estate deals, but it can apply to any type of deal in any sector. These models are good at showing how cash flows are split based on some rules about who has priority to receive a certain amount of distributions based on various hurdles or other performance criteria (such as a preferred return).

Financial Modeling for a New B2B SaaS startup

I've done many SaaS financial models in Excel over the past decade, with my own guidance and with the guidance of clients. Most of them were for startups, and a some were for existing operations. The main tenants are always true. That is a focus on retention modeling frameworks / customer pattern modeling, opex / burn, fundraising, capital management, pricing, customer acquisition, and churn.

Annual Churn Rate Calculator - Excel Template

The concept of annual churn rate doesn't seem that complicated at first, but when you dive down into the numbers, it becomes a little more murky. Any SaaS business, startup or otherwise, should be highly motivated to fully understand how sticky their customers are. That is one thing an annual churn rate illuminates.

Activity-Based Costing (ABC) Financial Model Template

One of the most accurate ways to determine what it costs a company to produce a given product or service is using an activity-based costing model. The below Excel template is a great starting framework for businesses to use in order to better understand their cost per unit. I had to delve back into my cost accounting days on this one.