To add a partnership structure into the underwriting, select "Yes" before generating a model. This will add a section to the Input tab where assumptions for equity split, promote structure, and partnership costs and fees can be entered.

There can be up to four tiers entered in the Promote section of the Input tab. Regardless of how many tiers there are in the promote structure, Tier IV must be the final tier used because it's from the point of the last hurdle to "Thereafter." Therefore if there are only three tiers to a promote, Tier III can be ignored. Let's say a promote has three tiers: a pref of 8% IRR, the second tier is 8%-15% IRR with a 10% promote, then the third tier is any distributions above 15% IRR with a 20% promote. The assumptions should be entered as seen in the screenshot below:

Because Tier III is from 15%-15% it is essentially ignored, and Tier IV is used as the final tier because it goes from 15% IRR to Thereafter. The calculations of this example are as follows: all distributions up to an 8% IRR are split pari-passu between the two partners. From an 8%-15% IRR, the Sponsor gets a 10% promote and the remaining 90% is split pari-passu between the two partners. From 15% IRR and thereafter the Sponsor gets a 20% IRR and the remaining 80% is split pari-passu between the two partners.

__Note__: If you have already created a model and filled in assumptions with no partnership structure but need to add it in after the fact, it can be done. First sync the model with the cloud with the "Save and Upload" box checked to ensure all your inputs are saved to redIQ. Now go back to the online platform, generate a new model, and make sure you select Yes for Partnership Structure. This will generate a new model with the partnership structure and will have all your inputs already filled in.