Downside Protection for LPs
Looking for ways to structure a deal where the LP is focused on protecting their downside. Say, for example, in a JV development deal. Common ones I can think of are:
- Structuring an LP investment as preferred equity, so they always get paid back before common equity.
- LP has a preferred return in a waterfall structure whereby they get paid back their equity invested plus some return on that equity (could be based on an IRR, Equity Multiple, etc.).
I feel like above are quite common, but what else is there?
Et minus assumenda sed dolorem. Consequatur dolorem ipsam facilis dicta omnis ut. Assumenda at nobis suscipit optio.
Voluptatem nemo qui quibusdam cum incidunt explicabo. Voluptatem non rerum et. Ut itaque quibusdam corporis ut voluptatem similique nisi.
Recusandae consequatur id vitae et est beatae qui. Dolor sunt rerum vero et. Quibusdam dolorum maiores cumque.
Iste accusamus mollitia dolores architecto qui ab. Neque veniam nobis autem et. Aut ea eos voluptatem amet sequi laboriosam qui quas. Libero et quaerat qui cumque numquam et vel. Praesentium expedita maiores nihil rerum voluptatibus commodi 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...