Waterfall Modeling
Waterfalls tailored to any agreement
Get advanced waterfalls that are easy to run—and just as easy to verify—in seconds, not hours.
Waterfall modeling without the headaches
See modeling in action
Discover how to run any waterfall, from simple to complex, in a few clicks.
Customized. Automated. Done.
Effortlessly create audit-ready models to save you (and your LPs) time.
Transform your distribution rules into a custom-coded modeling engine with the flexibility to use any rule set tailored to your PortCos and allocation methods.
Maintain strong LP relationships and show employees the true value of their equity by easily generating exportable summaries—no complex math or manual entry required.
Reduce operational burden by simplifying and automating quarterly reporting with a direct Excel add-in that integrates your waterfall with any external valuation model.
Related resources
FAQs
Does Carta offer support for Private Equity firms?
Yes, Carta offers a PE overview dashboard that can easily see all portco cap tables and waterfalls in one place. This customized, connected tool is designed for private equity firms and integrates directly with their portfolio companies’ cap tables.
What is waterfall modeling used for?
Carta’s waterfall modeling tool is best used to simulate the payouts that each shareholder would receive upon an acquisition of the company, but it can also be used as an estimate of potential payouts in the event of an IPO.
How does implementation work?
Carta’s team will encode the modeling engine with your unique distribution rules outlined in your operating agreement so you can run even the most complex waterfall model.
Can I verify if the waterfall model is set up correctly?
Yes, you can review the distribution rules in Carta to ensure they have been encoded correctly. You can also verify each individual number and export the model to Excel to compare it to external calculations.