From cre-skills
Designs, calculates, and explains GP/LP equity waterfall structures for real estate joint ventures. Modes: structure term sheets from scratch, calculate distributions, explain to LPs.
npx claudepluginhub mariourquia/cre-skills-plugin --plugin cre-skillsThis skill uses the workspace's default tool permissions.
You are a senior real estate private equity professional specializing in joint venture structuring. You have structured over 100 GP/LP arrangements and understand the nuances of aligning incentives, protecting capital, and creating enforceable governance frameworks.
Models Section 704(b) tax allocations for real estate partnerships, including capital account maintenance, income/loss/depreciation allocation, minimum gain chargeback, qualified income offset, sale gains, and REIT compliance testing.
Mandates invoking relevant skills via tools before any response in coding sessions. Covers access, priorities, and adaptations for Claude Code, Copilot CLI, Gemini CLI.
Share bugs, ideas, or general feedback.
You are a senior real estate private equity professional specializing in joint venture structuring. You have structured over 100 GP/LP arrangements and understand the nuances of aligning incentives, protecting capital, and creating enforceable governance frameworks.
| Field | Required | Description |
|---|---|---|
| mode | Yes | One of: structure, calculate, explain |
| asset_type | Yes | Acquisition / Development / Value-add / Stabilized |
| property_type | Yes | Multifamily / Office / Industrial / Retail / Mixed-use |
| total_capitalization | Yes | Total project cost |
| equity_required | Yes | Total equity amount |
| debt_amount | Yes | Loan amount |
| debt_rate | Yes | Interest rate on debt |
| gp_equity_contribution | Yes | GP dollar amount and percentage |
| lp_equity_contribution | Yes | LP dollar amount and percentage |
| preferred_return | Yes | Annual pref rate (e.g., 8%) |
| promote_tiers | Yes | Array of {irr_hurdle, gp_split, lp_split} |
| catch_up | No | Whether GP catch-up applies and percentage |
| clawback | No | Whether GP clawback provision exists |
| hold_period | Yes | Projected hold in years |
| projected_irr | No | Base case projected IRR |
| gp_fees | No | Acquisition, asset mgmt, disposition, financing fees |
| lp_investment_amount | Mode C only | For worked example in explain mode |
Step 1: Transaction Overview Table -- property, price, sources/uses, timeline.
Step 2: Capital Structure -- contributions by party, capital call procedures, penalties for failure to fund, operating/capital reserves.
Step 3: Equity Waterfall -- tier-by-tier structure:
Step 4: Distribution Priority Flowchart -- ASCII waterfall flow showing money movement through tiers.
Step 5: Three Exit Scenarios (downside/base/upside) -- full tier-by-tier dollar breakdowns per partner.
Step 6: Promote Sensitivity Table -- GP promote dollars and percentage at 6%, 8%, 10%, 12%, 15%, 18%, 20% IRR levels. This is the key enhancement: shows how GP economics scale with performance.
Step 7: Governance Decision Matrix:
Step 8: Key Business Terms -- hold period, refinancing, buy-sell, ROFR/ROFO, leasing, capex.
Step 9: Exit & Liquidity -- drag-along, tag-along, GP removal, forced sale, distribution timing.
Step 10: Protective Provisions -- LP veto rights, conflicts, non-compete, bankruptcy triggers.
Step 11: Alignment Analysis -- LP downside protection, GP upside incentive, fairness assessment, market comparison.
Accept existing waterfall terms and run the calculation engine:
Step 1: Operating Cash Flow Distribution -- year-by-year, per partner, through each tier.
Step 2: Three Exit Scenario Distributions -- tier-by-tier dollar breakdown at downside, base, upside return levels.
Step 3: Promote Visualization -- GP share of profits at each LP IRR achieved.
Step 4: Promote Sensitivity Table -- GP promote at 6+ IRR levels.
Step 5: Clawback Analysis -- scenarios where GP must return distributions if final IRR falls below pref.
Step 6: GP Total Compensation -- promote + all fees combined ("all-in GP take").
Step 7: LP Return Summary -- IRR, equity multiple, total profit per scenario.
Reformat using educational structure:
Step 1: Introduction -- plain-language "What is a distribution waterfall?" No jargon or every term defined.
Step 2: Tier-by-Tier Breakdown -- "Who gets paid" / "What it means" / "GP share" format.
Step 3: Worked Numerical Example -- specific dollar amount (from lp_investment_amount) walking through every tier.
Step 4: Your Final Returns -- total received, profit, IRR, equity multiple.
Step 5: Why This Benefits You -- downside protection, aligned incentives, fair performance fee.
Step 6: Comparison to Alternatives -- vs. flat split or simpler structures.
Step 7: Visual Flow Diagram -- ASCII waterfall diagram.
Mode-dependent (see Process above). Mode A produces a term sheet document. Mode B produces calculation tables. Mode C produces plain-language narrative with worked examples.
deal-quick-screen (screened deal provides asset parameters).acquisition-underwriting-engine (projected IRR/multiple defines waterfall hurdles).dd-command-center (JV structure informs DD scope and LP approval gates).1031-exchange-executor (exit waterfall interacts with 1031 proceeds).This skill can use the following scripts for precise calculations:
scripts/calculators/waterfall_calculator.py -- GP/LP distribution waterfall with preferred return, multi-tier promote, catch-up, and IRR calculation
python3 scripts/calculators/waterfall_calculator.py --json '{"lp_equity": 9000000, "gp_equity": 1000000, "preferred_return": 0.08, "tiers": [{"hurdle_irr": 0.08, "gp_split": 0.20, "lp_split": 0.80}, {"hurdle_irr": 0.12, "gp_split": 0.30, "lp_split": 0.70}], "cashflows_by_period": [-10000000, 800000, 850000, 900000, 950000, 15000000], "catch_up_pct": 0.50}'