Model who gets what, across complex entity structures

Carta’s existing waterfall modeling functionality now extends beyond single entities, handling the full complexity of modern investment structures. You can now trace theoretical value through multiple entity layers, giving CFOs, controllers, and fund accountants a complete view of how current valuations translate into stakeholder positions from portfolio companies through to LPs and GPs.

Modeling stakeholder positions through complex entity structures

Until now, understanding how a valuation cascades through multiple entities required exporting data into Excel, stitching together ownership percentages, and manually calculating what each stakeholder's position would be worth. Our multi-entity waterfall upgrade eliminates that friction by automatically modeling how different valuations translate into stakeholder positions across your structure. Adjust valuation inputs and immediately see how each entity layer affects final position values, validating hurdle rates, catch-up provisions, and clawback scenarios as they would apply at current marks.

​​Real-world applications across fund teams

Now, valuations teams can embed waterfall outputs directly into unrealized gain/loss reporting without rebuilding spreadsheets each quarter. GPs can model management compensation scenarios at different valuation points, showing teams exactly what their positions would be worth. CFOs and controllers can get a unified view of theoretical distributions at current marks, answering LP questions about carry positions and fund performance without manual reconciliation.

The bottom line

Manual spreadsheet workflows create risk and slow down quarterly close processes. Carta's waterfall modeling tool replaces that friction with accurate position calculations tied to your operating agreement, giving you faster marks and greater confidence when reporting unrealized values or modeling exit scenarios at various price points.