Agentic Waterfall Distribution System
Orchestrates **9 specialized AI agents** through a **5-stage workflow** covering intake, calculation, compliance, approval, and execution. Handles European/American/Hybrid waterfall structures, calculates LP-by-LP allocations for 47+ investors, validates against ESG frameworks, and manages human-in-the-loop approval chains with SLA tracking.
Problem Statement
The challenge addressed
Solution Architecture
AI orchestration approach
AI Agents
Specialized autonomous agents working in coordination
Distribution Orchestrator Agent
Waterfall distribution processing requires coordinated execution of calculation, validation, compliance, and approval stages with complex dependencies and exception handling.
Core Logic
Manages the end-to-end distribution workflow by coordinating all specialized agents. Handles stage transitions from intake through execution, manages agent task assignments, monitors processing status, handles exceptions and escalations, and maintains workflow state across asynchronous operations.
Distribution Analyzer Agent
Fund exit events require comprehensive analysis of fund structure, LP commitments, prior distributions, and waterfall parameters before calculations can proceed accurately.
Core Logic
Performs deep analysis of fund data including vintage, total commitment, called capital, unfunded amounts, and current NAV. Analyzes exit event details (full sale, partial sale, IPO, dividend recap, secondary), calculates gross and net proceeds after transaction costs and escrow, and prepares validated inputs for the calculation engine.
Waterfall Calculator Agent
Multi-tier waterfall calculations with hurdle rates, catch-up provisions, carried interest splits, and LP-specific terms are complex and error-prone when performed manually.
Core Logic
Executes precise waterfall calculations across **8+ standard tiers** supporting European, American, and Hybrid structures. Computes hurdle rate thresholds, catch-up allocations, GP/LP splits at each tier, and carried interest amounts. Calculates individual LP allocations for 47+ investors based on commitment percentages, preferred returns, and side letter terms.
Distribution Validator Agent
Distribution calculations must be validated for mathematical accuracy, compliance with fund documents, and alignment with LP expectations before proceeding to approval.
Core Logic
Performs multi-level validation including mathematical verification of all tier calculations, cross-checking against fund LPA terms, validation of LP allocation totals, verification of carry calculations against historical patterns, and confirmation of tax withholding requirements by jurisdiction.
Distribution Executor Agent
Once approved, distributions require coordinated execution including wire notice generation, payment authorization, settlement tracking, and confirmation delivery.
Core Logic
Manages the execution phase by generating wire notices with banking details, coordinating payment authorizations through treasury systems, tracking settlement status across all LPs, delivering confirmation notices, and maintaining the audit trail of all execution activities.
Distribution Reporter Agent
Stakeholders require comprehensive reports in multiple formats showing waterfall breakdowns, LP allocations, performance metrics, and compliance status.
Core Logic
Generates executive summaries with key metrics (Fund IRR, MOIC, DPI), detailed waterfall tier visualizations, LP-by-LP allocation tables, GP carry allocation breakdowns, and compliance status reports. Exports in PDF, Excel, and interactive dashboard formats with drill-down capabilities.
ESG Analyst Agent
Modern fund distributions must demonstrate ESG compliance across environmental, social, and governance dimensions with scoring against multiple regulatory frameworks.
Core Logic
Calculates comprehensive ESG scores (0-100) across three dimensions. **Environmental**: carbon footprint, renewable energy usage, waste reduction, water usage, biodiversity impact. **Social**: diversity scores, employee wellbeing, community engagement, human rights compliance. **Governance**: board diversity, compensation ratios, anti-corruption policies, transparency indices. Validates against SFDR, TCFD, EU Taxonomy, UN-PRI, GRI, SASB, and CDP frameworks.
Market Intelligence Agent
Distribution decisions benefit from market context including fund performance benchmarking, peer comparisons, and quartile rankings that inform stakeholder communications.
Core Logic
Integrates market data from leading sources (Cambridge Associates, Preqin, PitchBook, Burgiss, Hamilton Lane) to provide performance context. Calculates quartile rankings (top, median, bottom) by vintage and strategy, computes IRR and TVPI deltas versus benchmarks, and performs peer group analysis including percentile rankings against comparable funds.
ILPA Compliance Agent
Institutional LPs increasingly require ILPA-compliant reporting with standardized fee transparency, governance disclosures, and diversity metrics.
Core Logic
Validates distributions against ILPA reporting standards (Levels 1, 2, and 3). Ensures **fee transparency** including management fee breakdowns, carried interest waterfall disclosure, expense allocations, and offset tracking. Validates **governance standards** including LPAC composition, key person provisions, no-fault divorce terms, and conflict of interest policies. Tracks **diversity metrics** for GP and portfolio company reporting.
Worker Overview
Technical specifications, architecture, and interface preview
System Overview
Technical documentation
Tech Stack
6 technologies
Architecture Diagram
System flow visualization