Pro Forma II: Investment Waterfalls
Modeling investment waterfalls is the most complex task in developing a pro forma, but it doesn’t need to intimidate you. In this course, you will develop the skills to be able to produce your own investment waterfall pro forma.
This course takes you from the point of being capable of modeling a basic development or investment pro forma, to being able to model investment waterfalls in the context of advanced analytics and sensitivities testing. Develop and hone your analytical skills while learning to model investment pro formas involving multiple investors with different stakes and deals.
Upon completion of this course, you will:
- Understand how to test your pro forma’s sensitivities to avoid costly errors.
- Model investment waterfalls to plan distributions to equity partners.
- Analyze a complex pro forma.
In this course, you will learn about waterfall distribution structures and how they can change based on certain conditions. You will learn important terminology, the difference between a General Partner (GP) and a Limited Partner (LP), and how to calculate an IRR comparison for each partner. Spend time working through various examples with Dr. Tu so that by the end of the course, you can perform this analysis on your own.
This course is for you if you have a solid understanding of investment or development pro formas and/or real estate finance and investment. If you are creating a JV, or bringing multiple partners into your deal, you won’t want to miss this class.
All content is available for 90 days from first access. For extension inquiries, please email email@example.com.
This course counts toward the Pro Forma Fundamentals Certificate.