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10-Year Private Equity Fund Quarterly Cash Flow Model: Fund-LevelGeneral AssumptionsTotal Capital CommitmentFund Start-Up CostsCapital Commitment, NetLimited Partnership Ownership ShareAnnual Management Fees# of Transactions in Fund 95,000,000 120,000 94,880,00097.00%Years1to 102.00%10Fund Timeline in YearsFund Timeline in Quarters#1#2#3#4#5#6#7#8#9#10NET CASH FLOW TO FUNDNet Cash Flow To Fund From Investments123 Main Street456 Main Street789 Main Street321 Main Street654 Main Street987 Main Street135 Main Street246 Main Street411 Main Street100 Main StreetFund Level NCF From InvestmentsCumulative Fund Level NCF10 years40 quartersTotal OverLife Of FundIRR16.15%Fund-Level NCF After ExpensesOwnershipGP Cash Flow3.00%Remaining Cash Flow for LP and Fund ManagerPlus Management FeesNet Cash Flow For LP And Fund Manager 14,656,061 22,319,647 16,703,882 14,615,727 18,626,115 19,726,024 20,641,518 17,769,556 17,336,709 15,943,950 178,339,189Total OverLife Of Fund( 120,000)( 936,226)( 1,826,834)( 10,250,000)( 1,025,000)( 14,158,060)Plus Fund-Level ExpensesStart-up CostsAcquisition FeeDisposition FeeFund Level OverheadReserve for Overhead ContingenciesTotal Fund-Level ExpensesIRR14.68%SUMMARY OF INVESTOR CASH FLOWSAll LP Cash Flow (Distributions Share of Net Cash)GP Cash FlowFund Manager Share of Net Cash FlowTotal Cash FlowSUMMARY OF EQUITY INVESTMENTLP Equity InvestmentGP Equity InvestmentTotal Equity r-151Q201531-Mar-151Q2015Hold Periodin fall Hurdle Rate AssumptionsLP Preferred Return (Annual Compounding)LP Preferred Return (Quarterly Compounding)DispositionDate01-Jan-23 1Q202331-Mar-23 1Q202330-Jun-23 2Q202330-Jun-23 2Q202330-Sep-23 3Q202330-Sep-23 3Q202331-Dec-23 4Q202331-Dec-23 4Q202331-Mar-24 1Q202431-Mar-24 1Q2024Tier 2LP Share of Net Cash FlowFund Manager Share of Net Cash FlowUp to20.00%of ProfitsOperating AssumptionsAcquisition Fee (% of Equity)Expense InflationDisposition Fees *Reserve for Contingencies (% of Overhead)* % of Fund Level NCF From Investments8.00%7.77%80.00%20.00%RETURNS evelLPGPFund Manager 93,130,113 90,379,958 2,750,156 00QYear 11QYear 12QYear 13QYear 14QYear 15QYear 26QYear 27QYear 28QYear 29QYear 310QYear 311QYear 312QYear 313QYear 414QYear 415QYear 416QYear 417QYear 518QYear 016201720172017201720182018Data SeriesProfile(9,360,000)000000000( 00(8,951,088)0000(7,856,239)( 13,041,678) ( 18,450,278) ( 18,357,092) ( 14,860,596) ( 254191,758165,078198,096198,417 4191,758165,078198,096198,417 6191,758165,078198,096198,417 6204,349175,917198,096198,417 6204,349175,917211,103206,519 6204,349175,917211,103206,519 0204,349175,917211,103206,519 0217,318187,081211,103206,519 0217,318187,081224,500214,782 0217,318187,081224,500214,782 5217,318187,081224,500214,782 5230,676198,581224,500214,782 5230,676198,581238,300223,211 00)000( 213,600)0(132,600)0-250,000(25,000)( 407,600)0(189,280)0-250,000(25,000)( 464,280)0(191,434)0-250,000(25,000)( 466,434)0(161,239)0-250,000(25,000)( 436,239)0(168,073)0-250,000(25,000)( 443,073)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)( 9,573,600)( 13,449,278) ( 18,914,558) ( 18,823,527) ( 15,296,834) ( 15,614,058) 1,798,171 1,842,798 1,868,925 1,903,924 1,940,808 1,961,024 1,987,935 2,023,984 2,061,893 2,082,715 2,110,434 2,147,564 2,186,528IRR12.98% 4,925,434 159,255,695( 16,308,978) 142,946,717(287,208)(9,286,392)(42,120)( 9,328,512)(403,478)(13,045,799)(108,420)( 13,154,219)53,9451,744,226(442,827) 1,301,39955,2841,787,514(442,827) 1,344,68756,0681,812,858(442,827) 1,370,03057,1181,846,807(442,827) 1,403,97958,2241,882,584(442,827) 1,439,75658,8311,902,193(442,827) 1,459,36659,6381,928,297(442,827) 1,485,47060,7201,963,264(442,827) 1,520,43761,8572,000,036(442,827) 1,557,20962,4812,020,234(442,827) 1,577,40763,3132,047,121(442,827) 1,604,29364,4272,083,137(442,827) 1,640,31065,5962,120,932(442,827) 1,678,105(9,328,512)(22,482,731)(41,032,913)13.03% 147,872,151( 9,615,720)( 13,557,698)( 185,351)0(77,407,550) 67,194,384 75,752,333 24,647,671 51,104,662 4,925,434 147,872,151(9,328,512) 000(287,208)(9,615,720)OK(13,154,219) 000(403,478)(13,557,698)OK(18,550,181) 000(567,437)(19,117,618)OK(18,553,458) 000(564,706)(19,118,164)OK 118,299,046 4,925,434 24,647,671 7)0(19,117,618)OK( 90,379,958)( 2,750,156)( 117,618)14.68%LP CAPITAL ACCOUNT PREFERRED RETURN CALCULATIONBeginning BalanceLP Equity DrawnPreferred Return Accrual7.77% QuarterlyPro Rata CFEnding BalancePARTNERSHIP CASH FLOW DISTRIBUTIONLP Investments/DistributionsNet Cash Available To LP and Fund ManagerFund Manager Promote Share20.00%LP Share80.00%GP Cash FlowTotal Partnership Cash FlowJanuary 1, 2014 164,181,129Cumulative Cash Flow Net of GP Cash FlowNet Cash Flow To Fund (GP, LP and Fund Manager)Fund Start:Acquisition Timing AssumptionsFund QuarterInvestment #of 5QGP Max. Share20.00%GP Current Share20.00%% Total IRR80.00% 11.60%14.68%20.00%100.00% 13.03%97.047%2.953%100.000%Total OverLife Of Fund( 90,379,958)( 67,194,384) ,347,121) (18,258,821) (14,837,929) (15,145,636)(203,060)(294,637)(367,194)(442,827)( 18,550,181) ( 18,553,458) ( 15,205,124) ( 15,588,464)(59,586,370)(74,791,494)(90,379,958)( 19,118,164) ( 15,664,029) ( ,614)(70,997,509) 1,355,344 1,399,971 1,426,098 1,461,097 1,497,981 1,518,197 1,545,108 1,581,157 1,619,066 1,639,888 1,667,606 1,704,737 124) 000(458,905)(15,664,029)OK(15,588,464) 000(468,422)(16,056,885)OK1,301,399 00053,9451,355,344OK1,344,687 00055,2841,399,971OK1,370,030 00056,0681,426,098OK1,403,979 00057,1181,461,097OK1,439,756 00058,2241,497,981OK1,459,366 00058,8311,518,197OK1,485,470 00059,6381,545,108OK1,520,437 00060,7201,581,157OK1,557,209 00061,8571,619,066OK1,577,407 00062,4811,639,888OK1,604,293 00063,3131,667,606OK1,640,310 00064,4271,704,737OK1,678,105 00000000000000000
NetCash Flow 147,872,151 118,299,046 4,925,434 24,647,671Multipleon lative Fund Level NCF Net of 000,000)1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45(100,000,000)(150,000,000)19QYear 520QYear 521QYear 622QYear 623QYear 624QYear 625QYear 726QYear 727QYear 728QYear 729QYear 830QYear 831QYear 832QYear 833QYear 934QYear 935QYear 936QYear 937QYear 1038QYear 1039QYear 1040QYear 1041QYear 1142QYear 1143QYear 1144QYear 0,676198,581238,300223,211 3230,676198,581238,300223,211 3244,434210,425238,300223,211 3244,434210,425252,513231,809 3244,434210,425252,513231,809 6244,434210,425252,513231,809 6258,605222,624252,513231,809 6258,605222,624267,152240,579 6258,605222,624267,152240,579 5258,605222,624267,152240,579 5273,202235,190267,152240,579 5273,202235,190282,231249,524 5273,202235,190282,231249,524 2273,202235,190282,231249,524 2288,236248,132282,231249,524 2288,236248,132297,762258,647 2288,236248,132297,762258,647 ,250288,236248,132297,762258,647 03,721261,463297,762258,647 721261,463313,759267,954 3,759267,954 38,364,05800000020,760,75917,872,207313,759267,954 39,214,6780000000017,459,89115,702,378 33,162,2690000000000 00000000000 00000000000 000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)000-250,000(25,000)( 275,000)00(232,999)-250,000(25,000)( 507,999)00(356,323)-250,000(25,000)( 631,323)00(372,172)-250,000(25,000)( 647,172)00(386,330)-250,000(25,000)( 661,330)00(331,623)-250,000(25,000)( 606,623)00(147,388)-250,000(25,000)( 422,388)00000 000000 000000 0 2,207,975 2,236,525 2,274,769 2,314,818 2,336,908 2,366,314 2,405,706 2,446,870 2,469,623 2,499,912 2,540,485 2,582,796 2,606,232 2,637,429 2,679,220 2,722,711 2,746,850 17,052,179 25,130,910 36,852,166 37,716,886 38,553,349 32,555,646 0 0 066,2392,141,736(442,827) 1,698,90867,0962,169,429(442,827) 1,726,60268,2432,206,526(442,827) 1,763,69969,4452,245,373(442,827) 1,802,54670,1072,266,801(442,827) 1,823,97370,9892,295,325(442,827) 1,852,49872,1712,333,535(442,827) 1,890,70873,4062,373,464(442,827) 1,930,63674,0892,395,534(442,827) 1,952,70774,9972,424,914(442,827) 1,982,08776,2152,464,271(442,827) 2,021,44377,4842,505,312(442,827) 2,062,48578,1872,528,045(442,827) 2,085,21879,1232,558,306(442,827) 2,115,47980,3772,598,843(442,827) 2,156,01681,6812,641,029(442,827) 2,198,20282,4052,664,444(442,827) 2,221,617511,56516,540,613(442,827) 16,097,786753,92724,376,983(400,707) 23,976,2751,105,56535,746,601(334,407) 35,412,1941,131,50736,585,380(239,767) 36,345,6121,156,60037,396,748(148,190) 37,248,558976,66931,578,9760 31,578,976000 0000 0000 ,555,232)(52,573,145) 2,057,084(50,551,702) 1,765,148 1,793,698 1,831,942 1,871,990 1,894,081 1,923,487 1,962,879 2,004,043 2,026,796 57,444)1,952,707(100,766,023)1,698,908 00066,2391,765,148OK1,726,602 00067,0961,793,698OK1,763,699 00068,2431,831,942OK1,802,546 00069,4451,871,990OK1,823,973 00070,1071,894,081OK1,852,498 00070,9891,923,487OK1,890,708 00072,1711,962,879OK1,930,636 00073,4062,004,043OK1,952,707 00074,0892,026,796OK1,982,087 00074,9972,057,084OK2,021,443 00000000000000000000(48,489,217) ,717142,946,717 24,730,203 36,517,759 37,477,119 38,405,158 32,555,646 0 0 016,097,786 000511,56516,609,351OK23,976,275 000753,92724,730,203OK35,412,194 0001,105,56536,517,759OK29,420,814 6,924,7991,384,9605,539,8391,131,50737,477,119OK0 0 31,578,97615,813,00015,765,976976,66932,555,646OK0 000000 000000 00000000000000 2,163,405 2,194,602 2,236,393 2,279,883 2,304,022 744)0(1,933,519)16,097,786(85,365,477)2,062,485 00077,4842,139,969OK2,085,218 00078,1872,163,405OK2,115,479 00079,1232,194,602OK2,156,016 00080,3772,236,393OK2,198,202 00081,6812,279,883OK2,221,617 (100,766,023) (100,741,471) ,982,0872,021,4432,062,485(100,741,471) (100,677,087) (100,570,410)OKOK0000OKOK0000OK0000000OK000000
Fund Returns SummaryGP as GPOwnershipCapital InvestedNet Cash FlowMultiple On EquityIRRShare of Total Profits3.00% 2,750,156 4,925,4342.79x14.68%3.33%GP as FundManager0.00% 0 24,647,671NANA16.67%20.00%LPsFund97.00% 90,379,958 118,299,0462.31x11.60%80.00%100.00% 93,130,113 147,872,1512.59x13.03%
Transaction 10-Year Quarterly Cash Flow Pro-FormaProperty: 123 Main StreetTransaction #1January 1, 2014Acquisition AssumptionsPurchase PriceAcquisition FeeLoan FeesClosing Costs & ExpensesAll-In CostDisposition AssumptionsHold PeriodQuarter of SaleYear of Sale NOIExit Cap RateSelling Costs1.0%1.0%2.5% 20,000,000 200,000 100,000 500,000 20,800,000Acq. Costs 800,000Cash Flow AssumptionsUnleveraged Annual Yield on All-In CostNOI Annual Growth RateYear 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 11General Expense InflationCapex (as a % of All-in Cost)50.00% 10,400,0004.50%10.0 Years25.0 Years0.0 Years 9,360,0009.00 years36 2,107,9058.00%3.00%Total 16,904,753NET OPERATING INCOMEUnlevered Annual YieldCAPITAL EXPENDITURESNET CASH FLOW 1,000,000( 4,895,247)FINANCINGBeginning BalanceInterest PaymentPrincipal PaymentDrawEnding BalanceData SeriesProfileYear 1Time 0Q0( 20,800,000) 10,400,000 10,400,000Total 6,243,110TOTAL DEBT SERVICEDSCRNET DISTRIBUTABLE CASH FLOWLevered Yield On Original Equity Investment( 738,358)Residual ProceedsSale AmountLess: DebtLess: Cost of SaleNet Sales Proceeds to EquityUNLEVERED CASH FLOWLEVERED CASH FLOWFinancing AssumptionsLTVMortgageInterest RateTermAmortizationInterest OnlyTransaction Equity Investment( 10,400,000)Year 1Q1Q1 416,000250,000 166,000250,000 166,000250,000 166,000Year 1Q4Q4 416,0008.0%250,000 ,879,741173,4200.96x173,4200.96x( 7,420)Total 26,348,818 4,156,890 790,465 21,401,464IRR8.64%15.73%Year 1Q2Q2 416,000Year 1Q3Q3 416,000Year 2Q1Q5 428,480NOIYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 0%2.00%4.81%0 428,4800 428,4800 ,4200.96x173,4202.47x173,4202.47x173,4202.47x( 7,420)( 7,420)( 7,420)-0.3%000 0000 0000 0000 0 255,060000 0Year 2Q3Q7 428,480 255,060000 0 1,664,000 1,713,920 1,765,338 1,818,298 1,872,847 1,929,032 1,986,903 2,046,510 2,107,905 2,171,143 0 1,000,000Year 2Q4Q8 428,4808.2%0 428,480 255,060Year 2Q2Q6 428,4808.00%0 441,3340 441,3340 441,334Year 3Q4Q12 441,3348.5%0 54x173,4202.54x173,4202.54x 255,0609.8%000 0Year 3Q1Q9 441,334 267,915000 0Year 3Q2Q10 441,334 267,915000 0Year 3Q3Q11 441,334 267,915000 0 267,91510.3%000 0000 0 16,506,216 20,663,106( 20,800,000)( 10,400,000) 166,000( 7,420) 166,000( 7,420) 166,000( 7,420) 166,000( 7,420) 428,480 255,060 428,480 255,060 428,480 255,060 428,480 255,060 441,334 267,915 441,334 267,915 441,334 267,915 441,334 267,915PARTNER LINES BELOWManager/Fund Cash Flow 15,078,100POST-PROMOTE CASH FLOW (from Promote Tab)Partner 5,585,006Transaction 20,663,106Total 15,078,100( 9,360,000)( 6,678)( 6,678)( 6,678)( 6,678) 229,554 229,554 229,554 229,554 241,123 241,123 241,123 241,123 5,585,006 20,663,106( 1,040,000)( 10,400,000)( 742)( 7,420)( 742)( 7,420)( 742)( 7,420)( 742)( 7,420) 25,506 255,060 25,506 255,060 25,506 255,060 25,506 255,060 26,791 267,915 26,791 267,915 26,791 267,915 26,791 267,915Check on Cash Flow Generated vs. Cash Flow Distributed 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Year 4Q1Q13 454,5740 454,5740 454,5740 454,574Year 4Q4Q16 454,5748.7%0 704173,4202.62x173,4202.62x173,4202.62x 281,155Year 4Q2Q14 454,574 281,155000 0Year 4Q3Q15 454,574 281,155000 00 468,2120 468,2120 468,212Year 5Q4Q20 468,2129.0%0 ,4202.70x173,4202.70x173,4202.70x 281,15510.8%000 0Year 5Q1Q17 468,212 294,792000 0Year 5Q2Q18 468,212 294,792000 0Year 5Q3Q19 468,212 294,792000 00 482,2580 482,2580 482,258Year 6Q4Q24 482,2589.3%0 ,4202.78x173,4202.78x173,4202.78x 294,79211.3%000 0Year 6Q1Q21 482,258 308,838000 0Year 6Q2Q22 482,258 308,838000 0Year 6Q3Q23 482,258 308,838000 00 496,7260 496,7260 496,726Year 7Q4Q28 496,7269.6%0 02.86x173,4202.86x173,4202.86x 308,83811.9%000 0Year 7Q1Q25 496,726 323,306000 0Year 7Q2Q26 496,726 323,306000 0Year 7Q3Q27 496,726 323,306000 0Year 8Q1Q29 511,628Year 8Q2Q30 511,628Year 8Q3Q31 511,6280 511,6280 511,6280 2.95x173,4202.95x173,4202.95x 323,30612.4%000 0 338,208000 0 338,208000 0 338,208000 0000 0 454,574 281,155 454,574 281,155 454,574 281,155 454,574 281,155 468,212 294,792 468,212 294,792 468,212 294,792 468,212 294,792 482,258 308,838 482,258 308,838 482,258 308,838 482,258 308,838 496,726 323,306 496,726 323,306 496,726 323,306 496,726 323,306 511,628 338,208 511,628 338,208 511,628 338,208 253,039 253,039 253,039 253,039 265,313 265,313 265,313 265,313 277,954 277,954 277,954 277,954 290,975 290,975 290,975 290,975 304,387 304,387 304,387 28,115 281,155 28,115 281,155 28,115 281,155 28,115 281,155 29,479 294,792 29,479 294,792 29,479 294,792 29,479 294,792 30,884 308,838 30,884 308,838 30,884 308,838 30,884 308,838 32,331 323,306 32,331 323,306 32,331 323,306 32,331 323,306 33,821 338,208 33,821 338,208 33,821 338,208 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Year 8Q4Q32 511,6289.8%0 511,6280 526,9760 526,9760 526,976Year 9Q4Q36 526,97610.1%0 3.04x173,4203.04x173,4203.04x 338,20813.0%Year 9Q1Q33 526,976 353,557000 0Year 9Q2Q34 526,976 353,557000 0Year 9Q3Q35 526,976 353,557000 0000 0Year 10Q1Q37 542,7860 00 00 0Year 10Q4Q40 542,78610.4%0 0x00.00x00.00x00.00x00.00x00.00x 353,55713.6%Year 10Q2Q38 542,786Year 10Q3Q39 542,786 0 0 026,348,8184,156,890790,465 21,401,464000 0000 0000 0Year 11Q1Q41 00.0%Year 11Q2Q42Year 11Q3Q43Year 11Q4Q44 0 0 00 00 00 0 00.0%0 0 0 0 0 00.0%000 0000 0000 0000 0000 0 511,628 338,208 526,976 353,557 526,976 353,557 526,976 353,557 21,928,440 21,755,020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 304,387 318,201 318,201 318,201 16,060,823 0 0 0 0 0 0 0 0 33,821 338,208 35,356 353,557 35,356 353,557 35,356 353,557 5,694,198 21,755,020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Joint Venture Return DetailShare of Total Equity Investment123 Main StreetTransaction #1SponsorEquity InvestmentShare of Equity InvestmentGross ReturnNet Profit (Return on Equity)Multiple on EquityInternal Rate of ReturnTime from Equity Investment toFinal Return (years) 1,040,00010.00% 6,625,006 5,585,0066.37x25.79%9.00Fund 9,360,00090.00% 24,438,100 15,078,1002.61x13.95%9.00SponsorTotal ProjectFundSponsor10% 10,400,000100.00% 31,063,106 rfall Structure - Developer Sponsor and Third Party InvestorSponsor ShareFund CashflowFund ShareTotal CashflowIRR Hurdle RangesTier 1Tier 2Tier 3TotalLess Equity InvestmentNet Profit (Return on Equity)Fund39%Waterfall #1 Summary - Sponsor and FundTierShare of Total Profit 1,751,857 2,334,581 2,541,536 6,627,97416%25%60%27% 9,360,000 7,003,743 1,694,358 18,058,10184%75%40%73% 11,111,857 9,338,324 4,235,894 24,686,075( 1,040,000) 5,587,97410%39%( 9,360,000) 8,698,10190%61%( 10,400,000) 14,286,075Preferred ReturnTier 1Tier 2FromAbove0%8%throughthroughAbove8%13%13%Sponsor EquityPro-Rata ShareSponsorPromote10%10%10%0%15%50%Fund Profit Total (mustSharebe 100%)90%75%40%100%100%100%
#3 2Q 30-Jun-14 2Q2014 9.00 30-Jun-23 2Q2023 LP Share of Net Cash Flow 80.00% * % of Fund Level NCF From Investments GP 2,750,156 Annual Management Fees 1 to 10 2.00% #4 2Q 30-Jun-14 2Q2014 9.00 30-Jun-23 2Q2023 Fund Manager Share of Net Cash Flow 20.00% Fund Manager 0
