medium · CFA Level I alts
Harbourlight REIT uses a 'European waterfall' for its private real estate fund. This structure is generally considered more investor-friendly than an 'American waterfall' because it:
- Requires all contributed capital and hurdles to be returned before any carry is paid
- Distributes carried interest on a deal-by-deal basis
- Eliminates the need for a clawback provision entirely
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