Waterfalls
Hybrid Waterfalls: Allocate Fund-Level Expenses to Deal-by-Deal Tiers
You can now include exactly the portion of capital calls for general fund expenses (e.g. management fees, org-cost, reserves, etc.) that your LPA requires when you run a hybrid (deal-by-deal) waterfall.
The new Fund Expense Allocation workflow allows you to:
Follow your LPA to the letter – define a custom Inclusion Rate (numerator ÷ denominator) so only the appropriate share of ITD fund expenses flows into each deal-by-deal tier.
Pick the allocation style that suits your investors – choose FIFO (oldest expenses first) or Pro Rata (spread the % across all open expenses).
See and adjust before you distribute – review the system-calculated allocation in a dedicated step, then optionally “accelerate” pay-down by adding extra expenses to further de-risk clawback.
Audit with confidence – every allocated dollar is written to the tier-max calculation view, so your carry partners and auditors can trace the math end-to-end.
Configuring the Allocation (one-time setup)
Navigate to Configuration → LPA Configuration → Waterfall, open your hybrid waterfall and select the new Fund Expense Allocation panel.
Define the Inclusion Rate
Numerator – usually ITD capital called for realised investments.
Denominator – choose committed capital, invested capital or another calc that reflects your LPA’s wording (the denominator can even shift automatically once the fund leaves its commitment period).
Select transaction codes for the expenses you want the system to consider (e.g. Mgmt Fees, Org Costs, Credit Facility Draws).
Choose an allocation method – FIFO or Pro Rata.
Save. The allocation logic will apply to every distribution and hypothetical waterfall you run.
Running a Distribution with Expense Allocation
When you click Run Waterfall inside a cash distribution, the workflow now includes a Step 3 – Fund Expense Allocation.
What you’ll see
A line-by-line view of every outstanding fund-expense cashflow with a System Allocation column showing how much of each expense is being pulled into the waterfall.
A running total that updates in real time to show the effect on each deal-by-deal tier.
What you can do:
Accept the calculated amount for each cashflow, or enter an Additional Allocation if you’d like to pay down more than the minimum.
Group or filter the list by transaction code, date or deal to focus on the details that matter most.
Click Next and complete the waterfall as usual—the allocated expenses feed straight into tier calculations and appear in the structured audit output.
Frequently Asked Questions
Does the system ever “un-allocate” expenses if the Inclusion Rate drops?
No. The allocation is incremental—once a dollar is allocated, it stays allocated.
How does this work in hypotheticals?
Hypothetical waterfalls continue to assume 100 % inclusion of expenses (full-liquidation scenario).
Hybrid Waterfalls: Skip accelerated paydown when all investments are realized
Within the Hybrid Waterfalls workflow, when every deal is set to 100% required paydown, Maybern now skips the Accelerated Paydown step and shows a banner that reads: “Running waterfall… Skipping accelerated paydown.”
Why it matters
No dead-end screens – eliminates a step with nothing to adjust.
Faster runs – one fewer click in edge-case scenarios.
Clear status messaging – users know exactly what the system is doing.
Impact & defaults
Applies automatically; no configuration needed.
If any deal’s paydown is <100 %, the Accelerated Paydown step still appears as usual.
The skip banner is visible only to the initiating user and disappears once the waterfall finishes.
The waterfall output is identical to previous runs—just delivered faster.
Waterfall Tier configuration usability improvements
We've made the below usability improvements to waterfall tier configuration:
Form-mode tiers in Draft – tiers now open directly as editable forms, so you can type parameters without extra clicks. If no tiers exist, an empty tier form appears automatically.
Read-only config after Draft – once the fund moves past Draft, the Configuration → LPA Config → Waterfall screen switches to our standard view-only pattern: no ︙ menu, no edit icons.
Styling polish – the Hypothetical Waterfall – P&L Input section and its grey info boxes now match the width and spacing of other setup panels.
Why it matters
Faster tier creation – makes initial setup more intuitive.
Accidental-edit protection – locks the structure once the fund is live, aligning with LPA governance.
Consistent look & feel – visual tweaks bring waterfall screens in line with the rest of the app, aiding user confidence.
How it works
While the fund is Draft, open Waterfall Setup and start entering tier details directly in the on-screen form; click Add tier to reveal additional rows as needed.
After the fund status changes to Active, Closed, or any non-Draft state, revisit Configuration → LPA Config → Waterfall to review the locked tiers; all edit controls are removed.
The Hypothetical Waterfall inputs now render in a unified card layout with full-width grey call-outs for P&L figures.
Impact & defaults
Existing waterfall configurations are preserved; only the UI wrapper changes.
To make structural edits after Draft, return the fund to Draft or contact Maybern Support.
Capture Realization % per Deal to Handle Partial Realization & Write Downs Impact to Hybrid Waterfall
The hybrid waterfall workflow now supports capturing the realization percentage of each individual deal. This data can then be used in calculations that drive logic for amounts owed to each tier.
New Configuration Inputs
Investment Realization Percentage can now be entered per investment
Defaults to 0% for unrealized, 100% for fully realized
Editable in the first step of the hybrid waterfall workflow
References to this value are now supported in MXL calculations
Example Use Case
A hybrid waterfall may require the fund to pay preferred return on unrealized deals only if the fund is in a net write down position for all unrealized investments. Users can now reference the realization percentage of each investment in the configuration of such a preferred return tier and have the system automatically calculate if any preferred return on realized deals is owed based on write downs for those deals.
Hypothetical example: if the unrealized portion of the portfolio is $10M and currently valued at $7M, the write down is 30%. If IRR on the $10M is calculated as $2M, then $600K (30% of $2M) is returned as preferred return.
This enhancement supports more precise economic modeling for hybrid waterfalls and enables compliance with fund agreements involving unrealized downside protection.
Capital Activity
Ability to call for ad-hoc amounts of quarterly fee accruals
We've added to system flexibility by allowing users to call for a subset of management fees accrued for a given period.
How to enable
Go to Configuration → LPA Config → Fees → Fee List.
Open the relevant management fee, then switch on Ad-Hoc Calls (lives under Management Fee Capital Treatment).
Save.
Calling the fee
Navigate to Capital Activity → Run Capital Event → Add Call → Management Fees.
Enter the ad-hoc amount you wish to collect, review the pro-rata split, and post—no quarterly-accrual prompts will appear.
Track what’s been called – a new Amount Called metric appears on every fee’s bar-chart, benefitting all funds, even those that still call quarterly.
Credit Facility
Tracking Unused and Ad-Hoc Fees
You can now capture all the costs your lender charges—not just interest—directly in Maybern’s credit-facility module. Managing this in Maybern will allow for:
Maybern calculated levered vs un-levered IRRs: credit facility expenses impact levered IRRs, and these performance metrics will be used in both the core product and scenario modeling.
Elimination manual tracking in Excel: deprecate offline files you may still be maintaining manually on credit facility expenses.
Unused Fees
Charge the “unused commitment” rate on the portion of the facility that sits idle.
How to enable
Configure once per loan under Credit Facilities → Loans → Edit Loan → Unused Fee.
Enter the annual bps rate; the fee inherits your loan’s day-count convention.
The system decides whether the fee accrues on drawdown/paydown days based on your existing “charge interest on day-of” setting.
How to use
Post the fee from the interest-posting workflow—choose the loan and accrual date, review the calculated amount, and save. You can override the number before posting if the bank’s invoice differs.
Ad-Hoc Fees
Record one-off charges like upfront, breakage, or legal fees exactly when they hit your bank statement.
How to enable
No additional configuration required
How to use
Go to Credit Facilities → Add Fee → Ad-Hoc Fee.
Select the loan, give the fee a descriptive name, pick the accrual date, and post. It’s as quick as entering a normal expense.
What you’ll see
A Fee History view (per loan) lists every unused-fee posting and every ad-hoc fee, with dates, amounts, and notes—perfect for audits.
Levered performance reports automatically include these costs the moment they’re posted.
Helpful Tips
Fees can’t be posted for future dates—Maybern keeps timing in sync with actual cash movements.
Amortizing ad-hoc fees over time is out of scope for now—tell us if you need it!
Equalizations
Variable Rate Equalization Interest
Some funds peg sub-close catch-up interest to a reference rate + spread, so each closing uses a different percentage. Maybern now supports that workflow:
New “Variable” rate mode – choose Variable instead of Fixed and enter a unique catch-up rate whenever you add a closing or run an equalization event.
Perfect for historical tie-outs – Ops can back-fill ad-hoc rates in Shadow for earlier closes without changing fund-level settings.
One rate per closing, not per day – the percentage you input applies to the entire equalization period automatically.
How to configure
Go to Configuration → LPA Config → Fund Family Profile → Equalization.
Set Equalization catch-up interest rate type to Variable.
(Optional) Update Interest reference date to choose whether the rate prompt appears during Closing creation or when you run an Equalization capital event.
Save.
How to use
During a closing
In Commitments → Closings → Add Closing, a new field lets you key the catch-up rate for that close.
During a capital event
In Capital Activity → Run Capital Event → Add Equalization, the same rate field appears if you skipped it at closing time.
Toggling equalization on/off by capital activity TX code
Need to exclude certain cashflows from equalization while rebalancing the rest of your prior activity? You can now disable catch-up interest per capital-activity transaction code—handy when an LP-specific capital call shouldn’t be re-allocated to later-closing LPs.
Why it matters
No more override hacks – skip bespoke allocation rules; one config switch handles it permanently.
Audit clarity – the excluded postings still appear in capital-activity history, just flagged as “Not subject to equalization.”
How to disable equalization for a code
Go to Configuration → Capital Activity → Transaction Codes.
Open the code you’d like to alter (e.g., Capital Contribution – Subsequent Close Interest).
Toggle Include in Equalizations to Off.
Save. Future equalization events will ignore this code automatically.
Note: Past equalizations are not retro-adjusted—rerun if you need history to reflect the new setting.
Helpful tips
The toggle is available on any capital-activity code, so you can fine-tune equalization behavior across the board.
This change affects both manual and automated postings that use the code.
Usability
Rounding methodology overrides for capital activity
You can now tell Maybern to round capital-call amounts to the nearest whole dollar while the rest of your calculations (management fees, expenses, distributions, etc.) continue to round to the nearest cent. This mirrors common wiring practice, so your LPs no longer have to fuss with cents when sending funds.
Why it matters
Simpler wires for LPs – cleaner, dollar-only numbers.
No loss of precision – Maybern still stores cent-level values for internal allocations and reporting.
How to configure
Open Config → LPA Config → Rounding.
Click the ⋯ menu and choose Edit.
In the new Capital Calls Rounding Methodology Override dropdown, select Round to nearest dollar.
(Optional) If your firm also wants distribution amounts rounded this way, pick Distribution Rounding Methodology Override in the same panel.
Using it day-to-day
When you create a Capital Call, each LP’s amount is now pre-rounded to the dollar.
Need to tweak? Use the familiar Adjustments ± toggles before posting — exact cents can still be added or removed manually.
Impact & defaults
Existing funds keep their current rounding until you enable the override.
Reports and internal workflows remain at cent precision; only the wire instructions shown to LPs are rounded to dollars.
Usability improvements for MXL calculation audit views
We recently released audit views for MXL calculations; this past month, we made the below usability improvements to those views:
Date grouping everywhere – every date column can now be grouped, letting you collapse or expand results by day, month, or year.
Single capital amount – we removed redundant columns and now show one Signed Capital Amount (positive = capital in, negative = capital out). The old “Capital Amount” is relabeled as helper copy inside the tooltip.
New metrics available – Pref Rate and Pref End Date are now available as sortable columns for deeper analysis on waterfall audit views.
Impact & defaults
Historical data is unchanged; the UI simply presents it in the new format.
Existing saved views keep their filters but will adopt the signed-amount column on first load.
Exports respect the new column set: Signed Capital Amount, Pref Rate, and Pref End Date are included in CSVs and APIs.
Introduction of external IDs on Commitments
You can now store external IDs on each individual commitment, not just at the Investor Entity level. This lets firms whose accounting systems reconcile by commitment import and validate transactions in Maybern without work-arounds.
Why it matters
Accurate GL validation – align one-to-one with systems that expect commitment-specific IDs.
Cleaner integrations – no more rigid LP-level mapping or manual adjustments.
How to configure
Go to Investor → Commitments and open a commitment record.
In the new External ID field, enter the relevant ID and Save.
Repeat for each commitment that requires a unique identifier.
During file imports, exports or API ingrations, Maybern will now match on commitment-level IDs first and surface any validation errors per commitment.
Impact & defaults
Existing LP-level external IDs remain unchanged and continue to work
File-validation dashboards and error exports now include a Commitment External ID column to speed troubleshooting.
Commitment-level IDs are optional—add them only where required.
If both LP-level and commitment-level IDs exist, Maybern prioritizes the commitment value for matching and leaves the LP value for roll-up reporting.