Are most deals done where LP is paid back in full + their promote before the GP takes any promote?

best article on this subject is promotes by REFJ - real estate finance journal. Read it. Learn it.

regarding the question -- the annoying and yet obvious answer is that it depends. A deal can be structured however the hell anyone wants and can be as ridiculous as it wants long as someone else is willing to agree and partner to it.

But "market" is typically as follows: I.) preferred rate of return, oftentimes pari passu, and compounded monthly. Recently the compounding has been negotiated and sometimes done away with. II.) return of equity -- again pari passu. Now again, deal by deal is different. Most often it doesnt matter where the money comes from, if it is an available proceed after all accrued and unpaid pref is paid down...it can go to repaying equity. Othertimes, term sheets specifically have two waterfalls - 1 for operating cash flow, another for a sale/capital event. Not uncommon for the return of equity hurdle to only be applied during a capital event. If so, meaning that if there if sufficient operating cash flow to return equity...it would skip that hurdle and go directly to the splits... III.) Splits aka promoting. enter your hurdle and appropriate split herein...but essentially this is where the developer starts to make their promote. Not sure what you meant by the LP promoting too? Always the internal rate of return aka hurdle rate will be based on the ivnestor/GPs equity contribution.