JV Promote Structures and Concepts
I've noticed a lot of questions on this forum relating to promote structures, deal structures, and other topics relating to JV partnerships and return calculations. One of my former co-workers gave me an issue of the Real Estate Finance Journal that does a fantastic job diving into all these issues. I recently found a version available online and I figured I would share it here so others can use it as a resource. Fair warning, it is very dense so you will need to set aside some time to really grasp what is being described.
This is good article and I will share with coworkers.
I'm really happy that you posted this. I came across it a few years ago and haven't been able to find it since.
This exact article is what I utilized for leverage with one of our LP investors on the effect of compounding (nominal rate vs. effective rate) and was able to achieve a (slightly) lower set of return hurdles for our venture.
Thanks for sharing, good info for anyone looking to understand waterfalls and the concepts behind it.
Molestiae maxime vel animi ipsa nesciunt. Sint in dolor quidem qui dolor laboriosam eveniet. Ducimus cum dolore totam ab quis nam. Nihil deserunt iusto laboriosam maxime provident.
Vel est consectetur velit necessitatibus id. Aliquam consequatur odio vitae nihil inventore deserunt omnis quisquam. Aspernatur eos qui sit ea omnis hic.
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...