Interactive Tool
GP Capital Cost Calculator
Compare GP economics on the same deal with HNW/retail capital vs. institutional capital. Adjust the assumptions to match your deals.
Assumptions
Deal Parameters
$40.0M
65% debt / 35% equity
%
5 years
yrs
2.0x
x
8.0%
%
3 deals
HNW / Retail
Institutional
Net GP Profit (per deal)i
$3,997,070
$3,370,553
GP Capital at Riski
$420,000
$1,400,000
Return on GP Capitali
952%
241%
LP Acquisition Costi
$407,400
$0
The Negative Trade
On a single institutional deal, the GP surrenders $1.0M in revenue to avoid paying $407K in LP acquisition cost - a 2.5x negative trade.
HNW gross GP profit$4,404,470
Institutional GP profit$3,370,553
Revenue compression$1,033,917
LP acquisition cost (HNW)$407,400
Ratio (compression / cost)2.5x
Cumulative (3 Deals)
Cumulative GP Profiti
$12,806,009
$10,111,658
Cumulative Capital Lockedi
$1,260,000
$4,200,000
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This calculator is for educational purposes only and does not constitute investment, legal, or tax advice. The waterfall model uses simplified assumptions (compounded preferred return, lump-sum exit, no interim distributions) to illustrate directional economics. Actual deal terms, GP economics, and cost-of-capital vary by firm, deal structure, and market conditions. Carried interest tax treatment per IRC Section 1061 as preserved by the One Big Beautiful Bill Act (July 2025). LTCG + NIIT = 23.8%; ordinary income + NIIT = 40.8%.