Glossary Term

Waterfall Distribution

Waterfall Distribution is a financial framework in private equity and venture capital that outlines the method and order in which profits are distributed among partners, ensuring fair compensation based on specific benchmarks or hurdles.

3 min read

Related Terms

View all terms

Working Capital

Working capital is the difference between a company’s current assets and current liabilities, representing the liquidity available for day-to-day operations and serving as an indicator of short-term financial health and operational efficiency.

Ready to find the right investors?

Access our database of 150,000+ investors and find LPs aligned with your fund strategy.

Get Started FreeExplore Database