Snapshots of Modeling Private Equity Waterfalls: Incentives, Performance Measurement, and Excel Implementation

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that portable Excel waterfall functions can model stakeholder payouts while showing how leverage, cash-flow timing, and carried interest can make IRR, MOIC, and HPR provide materially different signals about performance and incentives.