Waterfall

The formula that determines how a fund's distributions are split between LPs and the GP, governed by the hurdle rate and carried-interest terms in the LPA.

Orivade keeps this on the investor's record — linked to the email or document it came from, so the current status is one search away the moment an LP asks.

See also

Deal-by-Deal Waterfall (American Waterfall)A distribution order that pays the general partner carried interest as each investment is realized, before the fund's overall result is known.
Whole-of-Fund Waterfall (European Waterfall)A distribution order that returns all contributed capital and the preferred return to investors before the general partner receives any carried interest.
Hurdle Rate (Preferred Return)The minimum return a fund must deliver to its LPs before the GP starts earning carried interest, set in the LPA and accrued on a defined basis.
Clawback (GP Clawback)A provision requiring the general partner to return carried interest it was paid earlier if, recomputed against the fund's lifetime results, it kept more than the agreed profit split allows. Common in deal-by-deal waterfalls, where carry is paid as investments are realized.