Independent GP vs Starting a Fund

In private equity or broader alternative investing, the term “independent operator” (sometimes called an independent sponsor or fundless sponsor) refers to a team or individual who sources and executes deals without managing a traditional, commingled fund. Instead of deploying capital from a pre-raised fund, an independent operator finds deals first and then raises capital from investors on a deal-by-deal basis.

Template for Calculating Interest Income Using the Effective Interest Rate Method

Bond modeling and related amortization schedules are a little different than your normal schedules. The main feature of this financial model template is to show the user how much interest income they need to recognize in each accounting period based on the idea that the facility (bond / loan) is purchased at either a discount or premium.

Real Estate KPIs: Commercial vs Residential

If you are in commercial or residential real estate as an operator or investor, these terms should be well understood. Some of the terms below are repeated between commercial and residential. However, they will have different calculation terms that are more common for the type of property.

Explaining the Difference Between an IRR Hurdle 'rate' and a Simple 'rate' for Monthly Preferred Return Waterfalls

I was thinking about these calculations for awhile and trying to articulate the core underlying math. Here is my video and a good explanation of the implications of various types of rates that could be used in a joint venture preferred return waterfall model. This is relevant for model calculations that are happening on a monthly basis.