Citco Waterfall™ upgraded to fully automate complex waterfalls for real assets funds and joint ventures

28 March 2024 - The Citco group of companies (Citco) is pleased to announce an upgrade to its Citco Waterfall™ tool which will enable real assets fund clients to automate complex carried interest waterfalls for funds and joint ventures.

Using industry leading, System and Organization Control (SOC) compliant technology, supplemented by a dedicated team of subject matter experts, Citco Waterfall streamlines the waterfall calculation process for real assets funds through its automated, transparent and scalable service offering.

The new functionality covers unrealized/hypothetical distributions, realized cash distributions and scenario/projection calculations, and provides for the allocation of deal specific carried interest calculations.

This can be of particular benefit to deal teams as the hypothetical distribution can be recorded in the financial statements so the actual cash distribution determined upon each asset sale can be projected, allowing users to view the impact of alternative sale prices on carried interest.

For joint ventures that have an array of potential calculations, the Citco Waterfall Tool can also automate these calculations in the three scenarios outlined above (dependent on the joint venture partner). This allows users to take control and test partners’ projections, rather than having to wait for an actual sale before getting an up-to-date calculation.

The new enhancements not only provide benefits to clients using Citco’s fund administration services, but are also available to non-administration clients via Citco’s Waterfall Ancillary Services offering.

This latest enhancement follows the introduction of Scenario Modelling to Citco Waterfall last year.