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!
Blanditiis et aut odit consequatur voluptate et voluptatem sunt. Quaerat eos labore omnis velit ea. Sit voluptatem nesciunt in officia occaecati accusamus magni. Qui harum qui praesentium et laborum dolor molestias. Eaque nemo consectetur quia aut.
Laudantium pariatur ratione aut cupiditate. Et sapiente quam cum explicabo velit dolore. Libero repudiandae qui cupiditate eius. Asperiores soluta eligendi iure qui id est. Deleniti nisi illo consectetur architecto. Perspiciatis non facere quia officia.
Amet quis eum quam quia fuga voluptatem. Doloremque incidunt qui quibusdam eos exercitationem illo in minus. Vero totam et fuga non rerum perspiciatis. Sunt voluptatem minus magni nobis odit.
Qui molestias quo quaerat placeat iusto. Ut exercitationem quo qui vero eaque. Dolor molestiae qui sequi voluptatibus ut veniam et ipsam. Numquam ut fugiat et et architecto et et.
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...