Economic terms
Maintain structured records of compensation arrangements, award context, and relevant commercial assumptions.
Hedge fund compensation and fund economics systems
W A T E R L I N E Economics
Waterline Economics is developing Waterline Compensation, a working prototype for hedge funds and alternative investment managers with complex compensation, accrual, allocation, and payment workflows.
At a high level, Waterline Compensation brings together economic terms, approved source inputs, accounting-policy assumptions, calculation outputs, and review state in one governed workflow.
Product
Waterline Compensation: controlled modelling and management for fund economics.
Designed for
Hedge funds and alternative investment managers with complex compensation economics.
Launch mode
Working prototype; production workflow shaped with design-partner firms.
Waterline Compensation
A governed workflow for compensation economics.
The product is intended to support finance, COO, CFO, fund accounting, HR, and senior management teams during the year, not only at year-end.
Source inputs
Support controlled use of approved P&L, expense, allocation, and management assumptions.
Calculation layer
Produce accrual, expected payment, and cashflow views under agreed accounting-policy assumptions.
Review workflow
Preserve ownership, versioning, sign-off state, and controlled outputs for finance and management.
Likely fit
For firms where compensation is material, bespoke, and operationally sensitive.
Waterline Compensation is most relevant where compensation arrangements are material, bespoke, sensitive, or hard to operate through spreadsheets alone.
Although the current prototype handles portfolio-manager economics, the product direction is broader: compensation workflows where fund performance, accounting policy, payment timing, and management judgement interact.
The strongest conversations are with people who own or understand the current process: CFOs, COOs, senior finance, fund accounting, HR, founders, CIOs, and management teams.