Rescue Capital Waterfall Calculator

Rescue capital takes priority. This calculator runs the senior-to-LP waterfall.

Rescue capital

Rescue pref rate

Existing LP equity

Total exit proceeds

Hold years

Rescue take

$4,350,000

LP remaining

$17,650,000

LP recovery %

147.08%

How the math works

Rescue take = capital + (capital × rate × years). LP get residual.

Negotiate rescue terms before a covenant actually breaks. Proactive rescue is often 500-700 bps cheaper than reactive rescue because the negotiating position improves dramatically. Once the breach is public, rescue capital providers know they are the only option.

How to Use

Enter rescue capital invested.
Enter rescue capital pref rate.
Enter existing LP equity.
Enter total proceeds at exit.
Enter hold years.
Read rescue take vs LP take.

Frequently Asked Questions

Rescue capital terms?

Senior pref (12-18% typical). Full return of capital before existing LPs get anything. Often accompanied by preferred share of promote. Highest-cost capital in stack — only attractive when no other options.

When accessed?

Covenant breach imminent. Refi window closed. Capital call failed. Construction overrun with no bank option. Distressed buyouts. Each creates leverage for rescue provider to extract harsh terms.

Owner recovery?

Existing equity only recovers what's left after rescue + loan. Rescue takes 15-25% of proceeds off the top. Remaining LPs dilute; sponsor promote often wiped out. Full wipe risk >50% when rescue is sizeable.