Question: Why do partners negotiate equity multiples into their waterfalls? Multiples are typically not negotiated into waterfalls IRRs shift due to timing of cash flows received,
Why do partners negotiate equity multiples into their waterfalls?
Multiples are typically not negotiated into waterfalls
IRRs shift due to timing of cash flows received, which impact when promotes are paid received
Multiples are typically easy for partners to conceptualize.
None of the above.
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