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ARTICLE · 07 APRIL 2022

First-time Funds Series – Video #8: Distribution Waterfall

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In the eighth video of our first-time funds series, Cameron Koziskie and Lauren Hulme of our Private Equity practice unpack the basics of distribution waterfalls—the set of rules that establish...

CanadaCorporate/Commercial Law
Cameron Koziskie
Cameron Koziskie
Lauren Hulme
Lauren Hulme
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In the eighth video of our first-time funds series, Cameron Koziskie and Lauren Hulme of our Private Equity practice unpack the basics of distribution waterfalls-the set of rules that establish the economic sharing of profits and losses in a private fund.

Our team discusses key considerations, including:

  • dynamics of distribution waterfalls in current market practice; and
  • navigating the four tiers that waterfalls typically include:  return of capital; preferred return; catch-up; and carried interest.

Stay tuned for the next episode of our first-time funds series on remedies.

Click here  to visit the main First-time Funds Series page.

Video Transcript

Cameron Koziskie (00:05):  Hi, everyone. I'm Cameron Koziskie, a partner in the Private Equity Group here at Torys. I'm delighted to be here today to discuss the basics of distribution waterfalls with my colleague, Lauren Hulme.

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