Use Case

Capital Calls & Distributions - Automated waterfall calculations, commitment tracking

Automate complex fund mechanics with precision-engineered waterfall calculations and transaction allocation across multi-class structures.

Description

Capital calls, distributions, and rebalancing events require meticulous calculation across complex multi-class structures with intricate waterfall provisions. Manual processing introduces errors and delays during critical capital events.

Next Gate Tech's Waterfall Engine applies fund-specific legal rules and distribution hierarchies to automate pro-rata allocations, preferred returns, catch-ups, and carry calculations with complete accuracy and full audit trails.

Key Features

  • Configurable Waterfall Logic: Model any partnership agreement structure including hurdles, catch-ups, and carried interest
  • Multi-Class Allocation: Calculate pro-rata distributions and capital calls across share classes automatically
  • Transaction Rebalancing: Adjust allocations based on capital account movements and commitments
  • Scenario Modeling: Test distribution scenarios before executing capital events
  • Complete Audit Trail: Track every calculation step with full transparency and justification

Data Objects

  • Partnership Agreement Rules Engine
  • Capital Account Ledgers
  • Waterfall Configuration Templates
  • Distribution Scenario Models
  • Transaction Allocation History

Intelligence Features

  • Anomaly detection for unusual allocation patterns
  • Predictive modeling of distribution outcomes
  • Automatic validation against partnership terms
  • Pattern recognition for calculation errors
  • Smart suggestion of optimal distribution timing
  • Historical comparison analysis for consistency checking
Asset managers must adapt quickly to meet investors' expectations and having a reliable partner like Next Gate Tech is essential for this transition.
BJ

Benoît Joseph

Chief Risk Officer, Trustmoore

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