The Catch Up provision in the model you’re referring to is a ‘Profit Catch Up’. It’s meant for a scenario many of our readers had requested we model, where the GP doesn’t actually contribute cash to the partnership. Instead, the GP brings the opportunity and manages the investment, and the LP brings all of the equity capital. Thus, the LP receives 100% of distributions until it hits the preferred return hurdle, after which the GP catches up to some predefined share of the profit distributed. This is a profit catch up, rather than an IRR catch up.