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What is European waterfall?

A whole-fund waterfall in which the GP earns promote only after investors receive return of capital and the preferred return across the entire fund, and is more LP-protective.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.