Automated waterfall distributions
Move away from high-risk Excel files by automating complex waterfall calculations in a secure and audited environment.
Why Excel waterfalls should be a thing of the past:
It struggles with complex calculations — you end up with many sheets, all interlinked.
Human-error is too easy — it increases as spreadsheets get more complicated.
There’s no audit history — can you be sure nobody has changed anything since last time?
Key-person risk — dependent on one or only a few people.
It doesn’t scale — as your business grows, its flaws become more pronounced.
Benefits of automating your waterfall calculations in LemonEdge
Here are some of the reasons your firm will benefit from calculating distributions in LemonEdge:
Improved control
Ensure that intricate calculation rules carefully transcribed from the fund LPA are locked down and can’t be changed, even inadvertently.
Reduce manual input
Minimise time spent doing manual and error-prone tasks by automating the pulling in of data and the subsequent posting of results, including any resultant accounting entries
Simple reporting
Having everything safely inside LemonEdge means that reporting of; return on capital, preferred returns, catch-ups, clawbacks, recyclables, carry, etc can be done with confidence.
Auditability
As with everything in LemonEdge, there is a full audit history, which enables you to view time-stamped changes at any time.
No more carried interest processing
As LemonEdge takes care of the waterfall distribution, the consequential carried interest processing is already taken care of — with the results sent directly to the carried interest entities.
See the future of fund accounting
Just some of what we’re excited to show you:
Tell us about you and your firm, and we’ll come straight back to you to schedule a personalised demo.
A proven alternative to legacy systems
"LemonEdge has proven market-leading capabilities that will enable the continuing evolution of our operations to become agile, efficient and able to add further value to our investors.”
Guillaume de Malliard, COO and Partner at Astorg Group
LemonEdge featured in The Commonwealth at 75 as a standout organisation shaping the Commonwealth
Frequently asked questions
Yes. One of the three different methods LemonEdge has to support waterfalls will meet your needs (without needing to resort to high-risk off-line Excel spreadsheets) — which method is used will depend on your precise requirements.
The out-of-the-box lot-level default waterfall functionality is itself capable of supporting a wide range of complex models. If your method does not operate at lot-level, or if the complexity exceeds the limits of the default offering, then any other method can always be supported using LemonEdge Algorithms. In addition, if you already have some bespoke model you wish to continue to use, then that is also possible using the LemonEdge API.
The holistic integrated nature of the LemonEdge system means that having completed the processing of a distribution the carried interest element can be automatically processed too, including the bookkeeping of relevant entries in carried interest vehicles.
The holistic integrated nature of the LemonEdge system means that having completed the processing of a distribution the associated notices can be automatically processed too, including issuing them direct to recipients or to the integrated LemonEdge portal (being a more secure communications method).
Groups of portal users are managed centrally on the main LemonEdge system.
Still have questions?
Request a demo and we'll answer them.