Subscription Line IRR Uplift Calculator

Subscription lines delay capital calls, boosting reported IRR but not LP wealth.

Fund commitments

Sub-line utilization %

Sub-line rate %

Months utilized

IRR uplift (bps)

Annual sub-line cost

$10,500,000

IRR uplift %

0.03%

Sub-line drawn

$200,000,000

How the math works

Drawn = commitments × utilization. Cost = drawn × rate × (months/12).

$500M × 40% = $200M × 7% × 9/12 = $10.5M sub-line cost. ~3% IRR uplift.

How to Use

Enter fund commitments.
Enter sub-line utilization %.
Enter sub-line rate %.
Enter months utilized.
Enter irr uplift (bps).
Read annual sub-line cost.

Frequently Asked Questions

Sub-line economics?

GP draws on credit facility (secured by LP commitments) to fund deals before calling LP capital. Repay with later capital calls. Effect: delays IRR clock by 6–12+ months. Cost: SOFR + 150–250 bps on drawn balance + 25–50 bps unused fee. Benefits: deal speed, IRR boost (200–500 bps over fund life). Critique: doesn't increase LP wealth, just optics. ILPA 2.0 calls for transparency. Largest sub-line lenders: SVB (pre-collapse), Wells, JPM, regional banks. Post-SVB market more cautious.

How does this fit fund/portfolio analytics?

Fund managers use this calculator alongside NAV reporting, distribution coverage, asset-level reforecasts, and LP investor reporting. ILPA reporting standards expect transparency on fees, expenses, and waterfall mechanics. AVAR, MOIC, IRR, and DPI metrics tie back to underlying asset performance. This calculator provides one component of fund-level performance attribution.

Promote and waterfall mechanics?

Standard PE real estate waterfall: 8% pref to LP, 50/50 catch-up to GP, 80/20 split above pref, sometimes second-tier 70/30 above 15%. American (deal-by-deal) vs European (whole fund) waterfalls produce materially different GP timing and risk. Catch-up and lookback provisions critical to LP. GP commitment (5–10% of fund) aligns interests.

Cap calls and distribution coverage?

Capital calls during construction/value-add phases, distributions from stabilized cash flow + dispositions. Coverage ratio: distributions / cap calls. Healthy fund > 1.5x in years 3–7. Distribution waterfall flows through LP pref → GP catch-up → split. LP investor expectations: 15–22% net IRR, 1.6–2.2x MOIC for opportunistic; 8–12% net IRR, 1.4–1.7x for core+.