FIND THE PERFECT MODEL THAT BEST SUITS YOUR NEEDS BY GOING THROUGH OUR CUSTOM MODEL BUILDER

 
 
 
 
 
 

INTRODUCTION TO THE MODEL

Welcome to the Hypothetical Fund Performance Model by Top Shelf Models—a powerful, Excel-based tool for simulating and forecasting investment fund returns. Designed for both first-time and institutional fund managers, the model incorporates key variables such as fund size, expenses, and waterfall terms to provide a clear view of potential outcomes.

Fully formula-driven, it allows for seamless input adjustments, enabling fast iterations and strategic scenario analysis. Whether you're a fund manager, investor, or analyst, this model offers valuable insights to support smarter decision-making.

 

PRODUCT FEATURES

 
 
 
 
 
 
 

Note about Models

In all TSM models, cells that have blue font are hard coded, and are meant to be adjusted by users. Cells that have black font are formulaic and should not be changed by the user unless specifically mentioned.

Version Notes:

For the past 18 months, we have thoroughly tested and vetted this model internally.

 

MODEL OBJECTIVES

 

+ ACCURACY

The hypothetical fund model must be accurate. If you are managing a fund, the model needs to be precise and exacting with zero formulaic errors. Without an accurate model, the capital requirements or expected returns could be misstated. Our hypothetical fund model is a 100% unlocked Excel file with fully transparent formulas. While the model is fully customizable, we are confident that it will contain everything you need.

+ EFFICIENT AND INTUITIVE

All tabs need to have a purpose, and all inputs should be organized in a logical way that is easy to follow. Anyone should be able to open the model and understand your assumptions. At TSM, this is important to us because we know that you will be sharing the results of your customized model with your investors, lenders, and partners.

+SPECIFICATION

The problem with most generic financial model templates is that they are standard and not able to be customized. You will either be required to add additional calculations or remove the sections you do not need. At Top Shelf Models, we have a proprietary Custom Model Builder where you are able to pick and choose the features you need. Some of these features include the ability to refinance, addition of mezzanine debt, as well as an option to choose how many tiers of waterfall calculations. The result is a model with exactly what you need, nothing more and nothing less.

+VISUAL APPEAL

A good-looking hypothetical fund model gives the audience confidence that the project is organized and thoughtful. We have included a pre-formatted investor summary tab that can be printed and used for internal and external reports. We also have a model output tab that summarizes the project in a single location so you or your marketing/investor relations team can copy the formatted reports and paste them directly into your OMs or PPMs. We have included several drop-down boxes, elevator buttons and consistent colors/formats using our trademarked formatting style.
Multifamily Development Model
 
 
 
 
 

WHY TOP SHELF MODELS?

 

+ CUSTOM MODEL BUILDER

This guides you through a series of questions, allowing you to achieve the exact model you need.

+INPUTS

Competitor models are too simple. They might only have 2-3 tabs in total which sounds great, but that means you are inputting assumptions directly into the cashflows which is not a good practice. It could also mean that the model is missing some much needed complexities that institutional investors look for. Also, most competitor models don’t use iterative calculations. Without iterative calculations, the sizing of the debt is incorrect. Our models use iterative calculations to calculate the construction interest so there is no need for manual plugs that you could forget to update.

+PRECISION

Our models are precise and easy to use. Look at the version history of other competitor industrial models and you will see the number of mistakes and miscalculations that have been supposedly fixed. It is almost as though the competition is using their customers to vet their own products! We have tested all the calculations and functions in our models BEFORE we offer them to our customers.

+FUNCTIONALITY

We generally have more functionality and control over the assumptions. There are countless examples, but our models have annual control over the revenue and expense inflations. For the exit value calculation, you can select if the cap rate is applied to a forward 12 NOI or a trailing 3-month NOI. For Debt, we have the ability to have fixed/floating loans, SOFR caps/floors, and can size the debt based on an LTV calculation. Again, there are too many examples to list out, but you get the idea.

+EXPERTISE

We are experts at waterfall calculations. Our founder regularly teaches on private equity waterfall calculations at Harvard Business School. Our waterfalls in our industrial development models can be either driven off promote or as a percentage of cashflows.

+EASE

We have made the underwriting process as easy as possible. We have included instruction manuals inside each industrial development model and all models include 30 minutes of free consultation with one of our financial analysts to answer any questions you have on the model or underwriting a specific investment. We are based in Dallas, Texas and can always be reached by email or phone to support you.

+CRADLE TO GRAVE

We have designed our models to be used cradle to grave. Our competitor’s models have been designed to simply underwrite deals. Our models have been built out to be updated during the operations of the project and include reforecasts of budgets within the monthly cashflows.
 
 
 

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