DESCRIPTION
Joint ventures happen in all sorts of businesses. You see them a lot in real estate syndication and oil / gas ventures, but they come up in any deal where you have a general partner that runs operations and an investor / investor group that funds most or all the costs.
Generally, the GP will take some fees as well as a share of the profits after the investor has reached some defined rate of return hurdle rate. The investor may or may not also receive a share of the profits after their preferred return has been satisfied. These deals can be structured in all sorts of ways and this template bundle covers many general joint venture structures that exist.
All the templates work by having the contributions / distributions plugged into the top and then all the cash flow logic takes over from there. It is often helpful to understand the risks / rewards of a deal to see the logic laid out explicitly. The cash flow waterfall outlines the order and priority in which cash flows generated by the joint venture are distributed among the participants.
If you are trying to analyze deals and/or present pro forma summaries to investors these models are a great place to start. Additionally, these are awesome tools even if you are just trying to learn finance and understand some of the spreadsheet formulas and logic that are used to create joint venture distribution summaries.
Note, you may have compounded interest rates, IRR hurdles, simple interest rates that accrue unpaid returns, and all kinds of stipulations. The truth is that the operating agreement language will end up defining what happens and you want the model to reflect whatever that may be.
Note, most of the templates have 10 periods (representing yearly periods) but you can easily adapt them to monthly periods and drag the formulas across for as many of the periods as needed without breaking any logic.
There are instructional videos within each file.
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.
THERE ARE 11 PRODUCTS IN THIS BUNDLE:
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Joint venture cash flow waterfalls are one of the trickiest things that I see clients needing help with. There is a big difference in being a good operator and fully... [read more]
Individual Price: $125.00
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Summary of the Preferred Return Cash Flow Distribution Model:
Priority on Preferred Return: The model ensures Limited Partners (LPs) receive a preferred return on... [read more]
Individual Price: $45.00
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I'd like to introduce you to a versatile fund model template I've developed. This tool is designed to help you model a wide range of fund structures, including real estate... [read more]
Individual Price: $75.00
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Model updates:
- Added an option to not compound unpaid accrued returns.
- Added a DCF Analysis with NPV to the end of this model.
This joint venture model is designed to... [read more]
Individual Price: $45.00
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Updates:
- Added an option (yes/no selector) to reduce LP equity basis with any distributions above the pref. return.
- Added a DCF Analysis to the end of this... [read more]
Individual Price: $45.00
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If you are looking into a joint venture as an LP (investor) or GP (sponsor/operator) then some thing to plan out are how much does each party contribute of the... [read more]
Individual Price: $45.00
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If you are new to IRR hurdles, don't feel bad that it is not immediately clear. Studying the logic and flow of this template will help anyone have a better understanding of how... [read more]
Individual Price: $45.00
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This joint venture waterfall distribution is designed for cash flow entries at the top, and the defined split at each hurdle. All logic flows from that and it is very easy to... [read more]
Individual Price: $125.00
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This is a joint venture cash flow waterfall. The template is designed for the user to enter in distributable cash flow (contributions and distributions) per period and... [read more]
Individual Price: $75.00
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This model is based on IRR hurdles for the LP. The template is designed for any kind of syndication joint venture deal where there is an LP and a GP. The cash in and out for the... [read more]
Individual Price: $75.00
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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... [read more]
Individual Price: $75.00
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ABOUT THE AUTHOR
I graduated in 2011 with a Bachelor's degree in Accounting and began my career as a financial analyst at a small chain of auto repair shops. After gaining valuable experience, I launched my own practice specializing in real estate underwriting, later expanding into general business modeling.
I honed my spreadsheet modeling expertise by completing over 400 projects on Upwork with a 100% success
... [read more]
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