waterfall-calculator

Business

Calculates distribution waterfalls per LPA terms, carry, clawback

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Source SKILL.md: https://github.com/a5c-ai/babysitter/blob/HEAD/library/specializations/domains/business/venture-capital/skills/waterfall-calculator/SKILL.md

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Waterfall Calculator

Overview

The Waterfall Calculator skill calculates distribution waterfalls according to Limited Partnership Agreement (LPA) terms. It models carried interest, clawback provisions, and LP/GP distributions across various waterfall structures common in venture capital.

Capabilities

Waterfall Structure Modeling

Support American (deal-by-deal) waterfalls
Support European (whole-fund) waterfalls
Handle hybrid waterfall structures
Model fund-of-funds structures

Carried Interest Calculation

Calculate GP carry based on LPA terms
Model catch-up provisions
Handle tiered carry structures
Track crystallized vs. unrealized carry

Clawback Modeling

Calculate potential clawback obligations
Model true-up scenarios
Track escrow requirements
Project final settlement amounts

Distribution Modeling

Calculate LP and GP distributions
Model management fee offsets
Handle recycling provisions
Track return of capital vs. profits

Usage

Calculate Waterfall

Input: Fund terms, realized/unrealized values
Process: Apply waterfall mechanics
Output: Distribution allocation, carry calculation

Model Distribution Scenario

Input: Exit scenario, fund status
Process: Calculate pro forma distributions
Output: LP/GP split, carry amount

Calculate Clawback Exposure

Input: Fund history, projected outcomes
Process: Model potential clawback
Output: Clawback exposure, escrow adequacy

Project Final Settlement

Input: Portfolio status, exit projections
Process: Model fund conclusion scenarios
Output: Projected final distributions

Waterfall Components

Component	Description
Return of Capital	LPs receive contributed capital first
Preferred Return	LPs receive hurdle (typically 8%)
GP Catch-up	GP catches up to carry percentage
Carried Interest	80/20 split (typically) on remaining

Integration Points

Distribution Waterfall Calculation Process: Core skill
Cap Table Modeler (Agent): Connect to ownership data
K1 Generator: Feed into tax reporting
Fund Accountant (Agent): Support accounting work

Waterfall Types

Type	Carry Calculation Basis
American	Deal-by-deal, immediate carry
European	Whole fund, after capital return
Hybrid	Combination with clawback

Best Practices

Model precisely per LPA terms
Track management fee offsets
Maintain accurate capital account balances
Model clawback sensitivity
Reconcile with fund administrator