Articles
Six worked questions from the practitioner guides — each one a figure that moves, and the reason it moves.
These are the calculations that get stated as conclusions elsewhere: what a recovery is worth once you account for what it is paid in, how a catch-up is solved rather than looked up, why a promote can go to nothing on a five percent move in exit values. Every figure below is a live formula in one of the free companion workbooks.
Companion workbooks: /distressed
A worked capital structure at three enterprise values. The break migrates from the first lien to the subordinated notes without a single document changing.
Composition and time do more damage to a recovery than the headline number suggests. Two arithmetic steps most screens skip.
Companion workbooks: /fundcontroller
Most write-ups state the catch-up formula then hardcode the answer. Set it as a solve and it moves on its own when the carry rate does.
Five findings in one quarter-end close, and not one of them was a modelling error. Every one was a control that did not exist.
Companion workbooks: /pere
Carried interest is not proportional to performance near the hurdle. It is a step function, and $2m of headroom is what stands between a promote and none.
The same deals, the same total profit, two calculation orders — and a $9M promise to repay that is only as good as the entity that made it.
Ten of the books come with companion files — working models, empty templates and checklists, with every published figure reproduced in a formula. They are free, and they need no account and no email address.
See all companion files → · All titles by Julian R. Sterling →