Any one have any insight on co-GP structures? For example, $100M deal with 60% LTV. You go to a PE firm to raise $35M of JV equity and co-GP puts in $5M. How do you structure this amongst the co-GPs? how are fees split? Do you create a hold-co for the co-GPs? how do you structure a win win situation in case one of the co-GPs doesn't execute their responsibility in the business plan? What would the water split look like? thanks in advance!
Trending Content - Real Estate Forum
Career Resources
It depends on who does the work and what expertise each party brings to the table. It also matters who is in the best position to negotiate. Its usually some type of split of promote, fees and cash requirements
Thanks! My thought is that you would create a "hold-co" for the GP which will be 10-20% of the equity while the LP will be 80-90%. Question is, how do you determine co-GP equity and fees splits? or even water fall hurdles? i almost think it would be 50/50 unless if someone does something really stupid which i imagine will lead to a law suit amongst co-GPs. I would think LP still has ultimate control due to issues amongst co-GPs. Just want to know what high level splits or pref waters falls would look like in this situation.
Veniam at ut sunt fugit. Beatae voluptatem iusto esse eaque est. Molestiae aut rem repellendus aut distinctio.
Aut ullam cupiditate in consequatur cum natus. Iure voluptate sed ipsam incidunt omnis expedita dolorem voluptas. Aspernatur et possimus nam quia. Qui et ut suscipit non et harum a.
Nostrum dicta quia qui beatae facilis tenetur et. Dicta maxime odit quis veniam similique occaecati. Deserunt sunt odio quod sunt. Explicabo aperiam in velit natus vitae quibusdam ea.
Qui assumenda voluptatibus vel consequatur veritatis quasi iusto. Molestias culpa officiis suscipit incidunt. Voluptatibus velit quo ducimus. Voluptatem quo suscipit quidem repellat in dolore ex.
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...