When returns are paid to more than one party in a vehicle, the order of priority for cash flows of these is set out in the waterfall calculation.
Global Definitions Database
Waterfall calculation
Parent term
Performance fee
Also known as incentive fees, promote or carried interest, are fees charged by investment advisors, or managers, after a predetermined investment p...
Related
Carried interest
A re-allocation of profits from the investor's capital account to the investment manager capital account based on the ability of the latter par...