Model any waterfall, validated to the cent

Configure the exact waterfall logic your operating agreement requires — pro-rata, multi-tier hurdles, GP catch-up, promote splits, and share classes. The engine runs the math every cycle, so you never touch a spreadsheet again.

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Waterfall Results

Validated

Return of Capital

100% LP

$1,500,000

Preferred Return (8%)

100% LP

$246,600

GP Catch-Up

100% GP

$61,650

Residual Split

80/20

$431,800

$107,950

Total Distribution$2,348,000

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Deal structures

Deal structures as unique as your portfolio

A single-asset syndication distributing rental income pro-rata looks nothing like a commingled fund running a four-tier waterfall with an IRR hurdle, GP catch-up, and promote split. Covercy One lets you configure the exact logic each deal requires — down to individual share classes, preferred-return rates, and lookback provisions.

Pro-rata, multi-tier, and custom structures
Preferred return, GP catch-up, and promote tiers
IRR-based and equity-multiple hurdles
Share-class and entity-level allocations
American (deal-by-deal) and European (whole-fund) models
Per-asset or fund-level configuration

Investor Allocations

Cedar Park Capital

25.7% ownership

$604,200

Summit Ridge Holdings

19.5% ownership

$458,000

Harbor Point Investors

16.0% ownership

$375,700

Oakline Family Office

12.5% ownership

$293,500

Ironwood Partners

9.0% ownership

$211,300

Other Investors (9)

17.3% ownership

$405,300

Transparency

Every investor sees exactly how it was calculated

Each distribution shows how an investor’s amount was derived — ownership percentage, capital contributed, preferred return accrued, and final payout — flowing through each tier. A pre-distribution validation report confirms every number before a dollar moves, so GPs and LPs share one source of truth.

Per-investor allocation breakdown
Tier-by-tier capital flow
Validated calculation report before payout
Complete audit trail

For the GP

Configure once, run it every cycle

Set up your waterfall to match the partnership agreement, then let the engine handle the math distribution after distribution.

Your agreement, encoded

Define tiers, hurdles, catch-up, promote, and share classes exactly as your operating agreement specifies — then reuse the structure every cycle.

Validated before you send

Every distribution generates a validation report you approve before funds move — calculations verified to the cent against your configuration.

One source of truth

GPs and LPs see the same per-tier, per-investor breakdown, so the math is never in question and the back-and-forth stops.

Part of the Covercy One platform

Waterfall modeling connects to the rest of your distribution workflow.

Waterfall management questions

What types of waterfall structures does Covercy support?: Covercy One supports all standard waterfall structures including pro-rata, American (deal-by-deal), European (whole-fund), and hybrid models. You can configure unlimited tiers with specific return hurdles, catch-up clauses, and promote allocations. Both IRR-based and equity multiple-based hurdle calculations are supported.
Can I manage multiple share classes within a single deal?: Yes. Covercy One lets you define multiple share classes per deal, each with its own preferred return, fee structure, and waterfall priority. The platform tracks each class independently and calculates distributions according to the specified class hierarchy.
How are waterfall calculations validated?: Every distribution generates a detailed validation report before funds are disbursed. The report shows each tier’s calculation, the amounts allocated to each investor, and any adjustments. You can review and approve the report before triggering payments.
Can waterfalls be configured differently per asset within a fund?: Yes. Covercy One supports both asset-level and fund-level waterfall configurations. You can set different waterfall structures for individual assets within the same fund, giving you maximum flexibility for multi-asset portfolios.