90/10 split for PE firms and GPs?
I understand the developer becomes the GP for the property and only puts up 10% of the equity, so typically around 2.5%-3% of the project costs. How often is this done on existing properties compared to new developments? Do most PE firms participate in the 90/10 split? What is the exit strategy for the PE firm?
happens all the time with existing properties. i mean, the GP still needs to bring something to the table in order to participate in the equity. but yes, happens a lot.
exit strategy would be a sale, of course ...
Accusamus laborum quibusdam expedita beatae iusto suscipit. In veritatis quia atque libero. Dolor deserunt quis modi asperiores necessitatibus sunt reiciendis. Non voluptatem corporis impedit aliquid.
Quam ut voluptatum et voluptate cum quas. Debitis illum officiis nulla. Atque aperiam molestiae pariatur delectus quo modi praesentium. Recusandae nemo sit qui placeat omnis necessitatibus. Blanditiis soluta dolorum natus explicabo voluptatem repudiandae qui. Libero praesentium illo illo pariatur. Impedit quos error magnam consequuntur porro ut dolor voluptas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...