Master Advanced Private Equity Real Estate Modelling with Bayfield Training
Take your real estate financial modelling expertise to the next level with the Capital Structures & Waterfalls: Private Equity Real Estate Modelling Certificate an advanced course delivered by Bayfield Training. Designed for experienced professionals, this on-demand course equips you with the skills to model sophisticated capital structures and evaluate investment performance across both project and partnership levels.
Through hands-on, practical instruction, you’ll learn to build complex financial models that incorporate senior and mezzanine debt, preferred returns, distribution waterfalls, promote structures, and advanced risk analysis tools such as Monte Carlo simulations and scenario testing. The course also introduces the integration of Python and Excel to enhance the precision and scalability of your models.
Whether you’re an analyst, investor, or asset manager, this certificate demonstrates your ability to navigate the intricate financial frameworks of private equity real estate.
If you’re ready to deepen your modelling expertise in capital structuring and return analysis, this advanced certificate is your next step.
Course Details
Duration:
5 weeks (Cohort)
12 months Access (On-Demand)
Course delivery:
Cohort & On-Demand
Cohort Price:
£2000 + VAT
On-Demand Price:
£2500 + VAT
Study period:
6-8 hours per week required
CPD hours:
40 hours (Under application)
Cohort Course Dates
Cohort 1 - 23rd March- 27th April 2026
This course is suitable for:
- Mid- to senior-level real estate professionals with experience in financial modelling.
- Real estate analysts seeking to deepen their modelling expertise in areas such as development projects, portfolio analysis, and risk assessment.
- Real estate investors aiming to enhance their understanding of advanced cash flow modelling and financial analysis.
- Chartered Surveyors looking for CPD accredited training relevant to their day to day roles.
This course provides participants with advanced financial modelling capabilities tailored to real estate and private equity investments.
Adopting a hands-on, integrated approach, learners will build models from detailed project-level cash flows to partnership-level return structures. Key focus areas include capital structuring with senior and mezzanine debt, distribution waterfalls, promote mechanisms, and analysis of investment risk through sensitivity analysis, dynamic scenario modelling, and Monte Carlo simulation.
The course concludes with a bonus illustration demonstrating how to enhance scenario and risk analysis through Python integration in Excel (via xlwings), enabling more precise and scalable investment evaluations.
Difference between the Cohort version & On-Demand version:
- Cohorts are scheduled on set dates throughout the year, to provide a structured learning experience over five weeks whilst maintaining flexibility of course working hours in that time period.
- On-Demand allows delegates to take the training at any starting point in the year, with 12 months access to the training.
On this course, you will.
- Model advanced cash flow structures from the project level up to the partnership level, capturing both operating and financial dynamics.
- Construct and evaluate capital structures, including the modelling of senior and mezzanine debt.
- Calculate promote and profit-sharing allocations across equity tiers and assess incentives under various scenarios.
- Understand and implement distribution hurdles including preferred returns, catch-ups, and tiered waterfall structures.
- Apply advanced risk analysis techniques such as Monte Carlo simulations, sensitivity analysis, and multi-variable scenario testing to quantify uncertainty in investment outcomes.
Module Overview
- Module 1: Introduction to PERE
Discover the fundamentals of Private Equity Real Estate, fund structures, and valuation frameworks. - Module 2: Performance Metrics & Pitfalls
Learn to assess investment performance, avoid modelling errors, and set up your case study model. - Module 3: Capital Structures & Stakeholder Priority
Build layered capital stacks and model debt and equity flows across real estate investments. - Module 4: Promote Structures & Waterfalls
Construct partnership-level waterfalls, calculate promote allocations, and evaluate returns. - Module 5: Risk Analysis & Investment Viability
Apply sensitivity testing, scenario modelling, and Monte Carlo simulations to quantify risk.
Introduction to Private Equity Real Estate (PERE)
- What is Private Equity Real Estate
- Market Participants and Partnerships
- Differences between Public and PERE Overview
- Private Equity Funds
- PERE Promote Structure
Performance Metrics, Key Pitfalls in PERE and Case study overview
- PERE Performance Metrics & Assessment
- Key Pitfalls and Considerations in PERE
- Case Study Overview
- Components of a Real Estate Private Equity Valuation Model
- Model Framework Setup and Assumptions inputs
Capital Structures & Stakeholders Priority
- Typical Capital Structure in PERE
- Equity Capital – Unlevered Cash Flow
- Debt Capital – Senior Loan Cash Flow, Mezzanine Finance, Revolving Credit Facility, Loan Covenants, Mezzanine Cash Flow
Performance & Promote Structure
- Performance Metrics – Leverage IRR and Equity Multiple (MOIC)
- Partnership-Level Cash Flows: Waterfall Structure – Partnership level Cash Flow, Preferred Return to LP Cash Flow, Catch up Structure
- Profit Tables – Waterfall Structure
- Conclusive Performance Metrics
Risk Analysis
- Sensitivity Analysis in Excel
- Dynamic Scenario Model in Excel
- Monte Carlo Simulation in Excel using Random Number Generation (Non-VBA)
- Bonus: Advanced investment Viability Analysis with Python and xlwings
Programme Managers
Sonia Martin-Gutierrez
Course Director & Advisor
CEO, Bayfield Training
Donald Stevens
Course Advisor
Head of Research & Innovation, Bayfield Training