RV Park Waterfall Calculator
An equity waterfall defines how cash flow and profits are split between limited partners and the sponsor. This guide walks through each tier with a worked example you can model in Camp Operator.
The Four Waterfall Tiers
Distributions flow through these tiers in order. Each tier must be satisfied before cash moves to the next.
1. Return of Capital
Limited partners receive 100% of distributions until their original invested capital is fully returned. This de-risks the LP position first.
2. Preferred Return
LPs earn a preferred return (commonly 6-9%) on their unreturned capital before the sponsor shares in profits. Often compounding annually.
3. Sponsor Catch-Up
Once the pref is met, the GP receives a catch-up so that the overall profit split reaches the agreed promote percentage.
4. Promote / Carried Interest
Remaining profits split per the promote — e.g., 70% LP / 30% GP. Some deals add hurdles where the GP share increases at higher returns.
Worked Example
A $1M LP equity deal with an 8% preferred return and a 70/30 promote, sold after a 4-year hold for a $2M total profit distribution.
| Stage | To LP | To GP | Note |
|---|---|---|---|
| Total Equity Invested | $1,000,000 | $0 | LP funds 100% of equity |
| Return of Capital | $1,000,000 | $0 | LP capital returned first |
| 8% Preferred Return | $320,000 | $0 | Over a 4-year hold |
| Catch-Up | $0 | $80,000 | GP catches up to promote |
| 70/30 Promote Split | $420,000 | $180,000 | Remaining profit split |
Result: LPs receive $1.74M total ($740K profit), GP earns $260K promote. Figures illustrative — model your exact terms in Camp Operator.
Stop Modeling Waterfalls in Spreadsheets
Waterfall math is easy to get wrong and hard to audit. Camp Operator ties your distribution structure to real operating cash flow.
- Model preferred return, catch-up, and promote tiers once
- Pull distributable cash directly from operations
- Calculate each partner's share automatically every period
- Generate distribution notices and audit-ready records
From Model to Money
A waterfall is only useful if it connects to actual cash. Camp Operator links your operating performance to your distribution structure, so the split your investors agreed to is the split they actually receive — with a clear paper trail behind every dollar.
Accurate waterfalls protect your reputation and your next raise.
See Camp Operator in Action
Watch how operators connect operations to investor distributions.
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