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Return of capital

Distributes proceeds back to LPs until their full equity contribution is returned. No split — 100% to members until exhausted.

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Preferred return

Distributes proceeds to LPs until they’ve earned a target annualized return on their equity. Can be configured as:
  • Cumulative — unpaid preferred return accrues and must be paid before moving to the next tier
  • Non-cumulative — preferred return is calculated only on the current period

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Catch-up

After LPs receive their preferred return, the sponsor receives 100% of proceeds until their cumulative share equals their promote percentage of total distributions to that point.

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Promote split

Remaining proceeds after prior tiers are split between LPs and the sponsor by a fixed percentage (e.g. 70% LP / 30% sponsor).

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Equity multiple hurdle

Proceeds flow pro-rata until LP total distributions equal a target multiple of their invested equity (e.g. 2.0x). After the hurdle is hit, the split changes.

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IRR hurdle

Similar to equity multiple hurdle but uses IRR as the threshold. Requires a target IRR to be specified.