The Best Waterfall Structures

Published: Oct. 24, 2023, 12:36 p.m.

b'

On today\\u2019s show we\\u2019re talking about getting paid, and who gets paid and in what order. Investment options often include a waterfall provision. This defines the order of precedence of payment. This is an important element of any investment. On today\\u2019s show we are going to look at a few of the popular offerings we see in the market, and then we are going to share what we do in our projects. To be clear, we are not soliciting for investment here. This is an educational piece designed to explore investment structure so that you can better evaluate whether a particular structure is beneficial for you. Of course you want to consult your CPA to make sure there are no unintended tax consequences.\\xa0

\\n

At the most basic level, the waterfall speaks to who gets paid in a project and in what order. There are infinite possibilities for the structure you could define for how investors and shareholders get paid. You can get as sophisticated as you want. But if investors can\\u2019t understand it, it\\u2019s not worth the extra complexity.\\xa0

\\n

-------------

\\n

Host: Victor Menasce

\\n

email: podcast@victorjm.com

'