Fees & economics

Management fee

The management fee funds your operations — salaries, deal sourcing, reporting — and is typically charged as an annual percentage of committed or invested capital. Set the rate and basis in the builder and the model shows the fee load over the fund's life.

Carried interest

Carry is your share of the fund's profits. The builder models how carry accrues under your chosen waterfall, so you can see the difference between, say, 20% carry with an 8% hurdle and 25% carry with a 10% hurdle in actual dollars, not just percentages.

Hurdle rate

The hurdle (or preferred return) is the return LPs receive before you participate in profits. It protects investors from paying carry on mediocre outcomes. The builder explains the common conventions for your asset class and shows how the hurdle interacts with your carry in the waterfall.

The waterfall

The distribution waterfall is the order in which money flows back out of the fund: return of capital, preferred return, GP catch-up, then the carry split. Fund Builder models the waterfall end to end, so for any exit scenario you can trace exactly where each dollar goes.

These four levers move together. A higher hurdle can justify higher carry; a lower fee can justify a larger GP promote. Change one and watch the modeled outcome — that feedback loop is the point of the builder.