Co-investing in deals with low-interest employer loan
I am starting at a new shop in a week. Will be working on real estate acquisitions, real estate development and smallopportunities. My new employer is offering me a low-interest line of credit to co-invest in deals, to be used at my discretion. The line tops out at $25k/year, which for reference is about a third of the base comp. The interest and principal on the line get paid out as the deals perform. I am not very familiar with the various co-investment structures out there so I am wondering if anyone has any experience with this type of structure and what some of the advantages/disadvantages are. How does this vary from a typical carried interest structure? In general I am wondering how I should be thinking about this as part of my comp structure.