Profit Distribution at the time of Exit ?

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November 03, 2020

by a searcher in Pickering, ON, Canada

Hi - Does anyone have an excel working or template for the profit distribution waterfall that explains sharing of proceeds between investors and searchers at the time of exit? I am specifically interested in understanding how "Stepped-Up Search Capital" & "Catch-up" should get calculated & adjusted during the profit distribution. Any pointers would be helpful! Thanks.

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commentor profile
Reply by a searcher
from Arizona State University in Boston, MA, USA
To my knowledge, nobody really has build a full fledged model on the standards within the search fund community. I could be wrong. Many try to interpret what it looks like from the search fund primer. It seems to me it is structured more like a PE fund carried interest, with the step up baked in. I don't have that. But I do have a PE model that can help serve as a template.
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Reply by an admin
from Stanford University in Honolulu, HI, USA
Tagging ^redacted‌ who we interviewed here: https://www.searchfunder.com/post/getting-into-the-arena.
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