Manage preferred returns, catch-ups, and tiered waterfalls directly through Ultimus’ technology-enabled managed service.
Waterfall Engine
Automate complex distribution waterfalls with precision
Bring efficiency and clarity to complex distributions
Our team leverages Ultimus ConnectTM Waterfall Engine to manage calculations within your accounting, capital activity, and reporting workflows while improving transparency, auditability, and reconciliation.
A structured approach to managing complex distribution waterfalls
Manage complex waterfalls with greater confidence
We manage multi-tier structures, preferred returns, and allocation complexities using a rules-driven approach designed for precision. Our team delivers consistent results while maintaining control across evolving fund structures.
Improve accuracy and consistency across periods
We standardize calculations using a granular, bottom-up methodology detailed down to the investor-level accounting that reduces errors and supports repeatable outcomes. You receive validated results and reporting that remain consistent across scenarios and reporting periods.
Strengthen transparency for audits and investors
Access fully traceable outputs with complete visibility into each calculation step and underlying logic. Waterfall Engine’s formula-transparent reporting means auditors can test every result directly, with no parallel models and no reconciliation guesswork, simplifying audits, supporting investor inquiries, and enhancing oversight.
Increase operational efficiency
We integrate workflows and automate manual processes across the fund lifecycle. Your team gains streamlined reconciliation, faster reporting cycles, and more capacity for higher-value work...
Features
Comprehensive waterfall modeling
We support multi-tier preferred returns, GP catch-ups, and profit splits based on IRR, multiples, and capital contributions across complex structures, inclusive of your preferred return bases as required.
Bottom-up calculation engine
We execute calculations using a structured, step-by-step methodology designed to improve accuracy across sophisticated allocation scenarios.
Seamless system connectivity
Direct integration with our core accounting systems aligns calculations with finalized fund data and streamlines data flows across workflows, eliminating manual intervention and reducing the risk of error.
Built-in scenario modeling and forecasting
“What-if” analyses and cash flow forecasts help you evaluate distribution impacts and support forward-looking decision-making.
Transparent, traceable reporting
Formula-transparent outputs provide you with full calculation visibility to simplify audits and support investor and stakeholder reporting.
Pre-built carried interest model library
Our robust library of European, deal-by-deal, and hybrid models supports complex strategies without requiring model rebuilds.
Benefits
Reduce operational risk across complex fund structures
Replace manual spreadsheet processes with a controlled, rules-based approach that reduces errors and improves audit confidence.
Adapt to evolving fund complexity
Support new structures and varying volume without rebuilding models, enabling consistent execution as your requirements evolve.
Accelerate time to insight and reporting
Streamline workflows and deliver automated outputs to provide faster, more accurate distribution reporting.
Enhance decision-making with forward-looking visibility
Model scenarios and forecast cash flows to inform allocation decisions before capital is distributed.
Improve coordination across fund operations
Align waterfall calculations with accounting and reporting workflows to reduce handoffs and improve operational efficiency.
Frequently asked questions
How does Ultimus handle complex waterfall structures across different fund models?
Ultimus supports whole-fund (European), deal-by-deal, and hybrid waterfall structures, including multi-tier preferred returns, manager catch-ups, and complex allocation rules. Calculations are aligned directly to fund governing documents to ensure precise economic outcomes.
How are changes to fund terms or allocation structures managed over time?
Ultimus maintains flexible model configurations that can be updated to reflect evolving fund terms, structural changes, or new investment scenarios. Changes are implemented in a controlled manner to preserve consistency across historical and future calculations.
How are waterfall outputs delivered to support audit and investor reporting?
Ultimus provides fully traceable, formula-transparent outputs with detailed visibility into each calculation step and underlying assumptions. These outputs are structured to support audit review, investor transparency, and internal oversight requirements.
How does the Ultimus ConnectTM Waterfall Engine integrate within the broader operating model?
The Waterfall Engine is embedded within Ultimus’ service delivery model and connects with accounting, capital activity, and reporting workflows. Calculations are aligned with finalized data and reduce reconciliation complexity.