I know there have been a few topics regarding how carried interest works for deal guys getting a piece of the carry, and it's fairly easy to articulate on deals where you can isolate a GP promote and then take a % of that.
On the flip side, let's say rather than selling, the choice is made to refinance asset (let's assume it's a single tenant retail development whereby at stabilization, the property could support a refi where 100% of the dev cost (debt and equity) can be refinanced, effectively returning 100% of equity back to investor). Since there is no terminal event, what would be an "appropriate" ask in terms of getting a % share of the net cash flow of the asset going forward? Is there a methodology that would cover both the sell/profit scenario and refinance/interest in the recurring cash flow? I am trying to keep it as a simple clause rather than having a bunch of IF/THEN scenarios, if that make sense.
Any tips would be much appreciated!
Porro sunt placeat tempora et nisi ea est. Iure et nisi quos animi. Vel minus consectetur et debitis nemo in odio cumque. In quo eaque voluptates. Nostrum optio est velit neque qui. Non porro necessitatibus eum minima placeat sint.
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...