Hedge Fund Model: Soft Hurdle Option   Excel template (XLSX)
$75.00

Hedge Fund Model: Soft Hurdle Option (Excel template (XLSX)) Preview Image Hedge Fund Model: Soft Hurdle Option (Excel template (XLSX)) Preview Image Hedge Fund Model: Soft Hurdle Option (Excel template (XLSX)) Preview Image Hedge Fund Model: Soft Hurdle Option (Excel template (XLSX)) Preview Image Flevy is the marketplace for business best practices.
Loading preview images...
Arrow  

Hedge Fund Model: Soft Hurdle Option (Excel XLSX)

Excel (XLSX)

$75.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  


Immediate download
Fully editable Excel
Free lifetime updates

BENEFITS OF DOCUMENT

  1. A model that demonstrates how fees are earned in a hedge fund joint venture agreement.

DESCRIPTION

This product (Hedge Fund Model: Soft Hurdle Option) is an Excel template (XLSX), which you can download immediately upon purchase.

This model was designed to help articulate an agreement between a hedge fund operator and an investor. This would be considered a joint venture in general. The purpose is that the invested amount will be tracked over time in terms of a net asset value (NAV). The basis for asset management fees and performance fees will be based on the NAV over time.

The user can define the asset management fee and performance fee as inputs. These will be applied to each period dynamically. A high watermark feature is included and results in the basis for the performance fee calculation. Only profits above the high watermark for each period will be subject to the fee if the hurdle rate for the period has been met. The hurdle rate is based on a defined percentage applied to the beginning period NAV. Both conditions must be met for the performance fee to take effect. If these conditions are met, the fee is applied to the total profits, not just the profits above the hurdle. This is where the term 'soft hurdle' comes in.

I built this template while working with a hedge fund that has 100s of millions in AUM. An attorney has reviewed the logic for accuracy as well.

The main return summary will show the total lifetime increase in NAV from original deposit and the total return on investment (ROI). Additionally, the total asset management fees and performance fees are totaled up and displayed. By using this tool, a hedge fund can better explain how fees and profits are calculated. A general joint venture agreement can sometimes be difficult to grasp on its own, so with this model one can apply various changes in NAV over time and see how that affects all parties involved.

An instructional video is included in the download.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Hedge Fund Excel: Hedge Fund Model: Soft Hurdle Option Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping


$75.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  

ABOUT THE AUTHOR

Additional documents from author: 173

I graduated in 2011 with a Bachelors degree in Accounting. From there, I worked at a few small businesses doing financial reporting and some bookkeeping. After a few years of that, I started doing freelance financial consulting work on Elance and Upwork.

After over 400 jobs completed with a 100% success rate, I now run my own modeling/consulting practice and continue to build new financial models every few weeks. [read more]

Ask the Author a Question

Must be logged in

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Bundle and save! You can save up to % with bundles!

View bundle(s)




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials




Save with Bundles

This document is available as part of the following discounted bundle(s):


Your Recently Viewed Documents


Customers Also Like These Documents

Related Management Topics


Integrated Financial Model Hedge Fund Financial Management Business Plan Example SaaS Subscription Energy Industry Renewable Energy Solar Energy Manufacturing Data Center

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.