PE Exit Waterfall & Distribution Modeler — Carried Interest & DPI Engine

Total Realized Exits

$12.00 B

Cost: $4.40 B (2.73x)

Net LP Distributions

$10.32 B

Net MOIC: 2.35x

GP Carried Interest

$1.68 B

Effective Carry: 22.1%

Fund DPI Multiple

2.06x

Distributions / Paid-In

Hurdle & Catch-Up

Met & Cleared

8.0% Pref • 100% Catch-Up

Fund Structure & Waterfall Terms

Scenario Presets

Waterfall Mechanism European returns all paid-in capital + hurdle to LPs before GP receives any carry.

Fund Size ($M)

Paid-In Capital (%)

Pref Hurdle Rate (%) 8.0%

GP Carry (%) 20%

GP Catch-Up Structure Rate at which profits post-hurdle flow to GP until GP reaches carry target.

Exit Valuation Stress Multiplier 1.00x Simulate market boom or compression across all active portfolio exits.

Realized Portfolio Deals

Asset	Invested	Exit EV	Hold	MOIC

Model active • European waterfall

Cash Distribution Waterfall Flow

Whole Fund Waterfall

Capital Allocation by Tier ($ Millions) $12,000 M Net Exit

Aggregate Net Proceeds Split

LP: $10,320M (86.0%)

GP: $1,680M (14.0%)

Limited Partners (Return of Capital + Profits) General Partner (Carried Interest)

Distribution Tranches

European vs. American Waterfalls

In a European (whole-fund) waterfall, LPs receive 100% of all distributions until their cumulative contributed capital plus the preferred return hurdle (typically 8%) is completely satisfied. In an American (deal-by-deal) waterfall, carried interest is calculated per asset exit, but requires clawback reserves if subsequent investments lose value.

The GP Catch-Up Mechanics

Once LPs clear their preferred hurdle, the GP enters the Catch-Up tranche. Under a standard 100% catch-up, 100% of incremental profits flow to the GP until the GP has received exactly 20% of all cumulative profits generated above return of capital. Thereafter, remaining distributions split 80/20.

Realized Exits & DPI

Warburg Pincus's milestone $12 billion in realized exits year-to-date underscores how liquidity events directly elevate fund DPI (Distributed to Paid-In). Institutional LPs prioritize DPI over unrealized TVPI when evaluating reinvestment and new flagship fund commitments.