Waterfalls
What does Distribution Sweep mean in sponsor-led private capital?
Distribution Sweep is important because it affects advanced waterfall mechanics and should be tied to a real sponsor workflow, not just used as jargon.1,2
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Distribution Sweep refers to distribution Sweep is a metric sponsors, LP finance teams, and fund administrators use inside preferred return calculation, promote timing, distribution reserves, clawback review, and final true-up when the detail is too important to leave as informal context. The important point is not the label itself, but the workflow it controls. Sponsors should connect Distribution Sweep to the relevant document, model, investor notice, approval, or reporting record before relying on it in a live deal. A strong operating record also names the owner, the current status, the affected stakeholders, and the next review trigger so the concept can survive diligence, reporting, and later investor questions.1,2
Archstone
Operate your fund without a back office.
Related glossary terms
Related comparisons
Carry Reserve vs Clawback Reserve
Carry Reserve and Clawback Reserve both show up in carry risk control, but they answer different operating questions. Carry Reserve is usually the better frame when cash is held back before paying carry; Clawback Reserve is usually the better frame when cash is held to cover potential clawback obligations.
Catch-Up Cap vs Hurdle Reset
Catch-Up Cap and Hurdle Reset are related private capital concepts, but they answer different operating questions. Catch-Up Cap belongs closer to advanced waterfall mechanics, while Hurdle Reset belongs closer to advanced waterfall mechanics.
Distribution Sweep vs Bridge Funding Notice
Distribution Sweep and Bridge Funding Notice are related private capital concepts, but they answer different operating questions. Distribution Sweep belongs closer to advanced waterfall mechanics, while Bridge Funding Notice belongs closer to capital call exceptions.
Sources & References
- 1.Institutional Limited Partners AssociationCapital Call & Distribution Notice TemplateILPA(Capital call, distribution notice, LP reporting, and investor communication standards.)primary · workflow-standard · waterfalls
- 2.Internal Revenue ServicePartnershipsIRS(Partnership tax and reporting context for private vehicles.)primary · tax-context · waterfalls