How do LIHTC developers make money?
In the process of discussing a VP level position with an affordable developer (mostly 4% LIHTC deals).
My background is primarily market rate value add multifamily and commercial. I was curious if they comp structure for affordable groups is similar or less than what it would be for a pure play equity shop investing in value add deals?
Also, given that these LIHTC deals are held for longer periods, would I be off base assuming that I could ask for some form of "carried interest"? Or would that be pointless given the structure of a LIHTC deal? My understanding is the main source of upside for affordable groups is through the developer fees and other assorted fees?
Thanks