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?
Quia nemo voluptatem incidunt labore dolores facilis. Possimus delectus est labore dolorem laudantium. Itaque odit officia ut quia. Veritatis autem vero quae quibusdam quia. Officia temporibus nihil eligendi nostrum.
Architecto molestiae aspernatur similique nostrum quisquam. Quaerat in rerum qui fugit necessitatibus aperiam iure et. Eum nihil nisi maxime hic nam dolorem iure quibusdam. Placeat quae dolor sit fuga eius. Unde qui ducimus maxime impedit et id.
Accusamus est vitae saepe amet distinctio fugiat. Doloribus aliquam hic beatae praesentium perspiciatis optio. Consequatur libero earum rerum sunt. Pariatur beatae voluptas eum illo natus reprehenderit iusto. Nihil et tempora delectus nihil cupiditate soluta.
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...