What is hurdle rate?
A minimum return (often an IRR or preferred return) that investors must achieve before the GP earns a higher share of profits; multi-tier waterfalls use several hurdles.
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.