What distribution financing does to your fund's numbers.
Enter your fund's NAV and expected exits. See DPI today, final TVPI and IRR, and what it costs LPs compared with selling interests at a discount.
| Hold | Financing | Sale | |
|---|---|---|---|
| Cash to LPs today | |||
| DPI today | |||
| Cost to LPs | – | ||
| Final TVPI | |||
| IRR on today's NAV |
Cost to LPs at every outcome
How much LPs give up under each route as the portfolio's total future distributions change. The marker shows your assumption; the crossover is where both routes cost the same.
View as table
| Total future distributions | Financing cost | Sale cost |
|---|
How the numbers are calculated
Future distributions are spread evenly across the exit years you enter. The financing advances a share of NAV today and is repaid from the sweep of each year's distributions until it has received the greater of the IRR hurdle and the multiple floor, up to the cap. The comparison sale raises the same cash by selling LP interests at the price you enter, so LPs give up that share of all future distributions.
Example with the default inputs: a $100MM fund with $300MM of NAV takes a $60MM advance. If it later distributes $400MM evenly over years 3 to 6, the financing costs LPs about $84MM and a sale of 25% of interests at 80% of NAV costs $100MM. The financing costs less whenever future distributions exceed about $337MM, roughly 112% of current NAV. Slower exits raise the financing's cost; faster exits lower it.
Results are illustrative, ignore fees, carry and taxes, and are not a quote, an offer or a projection. Actual terms are set after diligence. See the FAQ on cost and the liquidity guide.