I've noticed a lot of questions on this forum relating to promote structures, deal structures, and other topics relating to JV partnerships and return calculations. One of my former co-workers gave me an issue of the Real Estate Finance Journal that does a fantastic job diving into all these issues. I recently found a version available online and I figured I would share it here so others can use it as a resource. Fair warning, it is very dense so you will need to set aside some time to really grasp what is being described.
Trending Content
Career Resources
This is good article and I will share with coworkers.
I'm really happy that you posted this. I came across it a few years ago and haven't been able to find it since.
This exact article is what I utilized for leverage with one of our LP investors on the effect of compounding (nominal rate vs. effective rate) and was able to achieve a (slightly) lower set of return hurdles for our venture.
Thanks for sharing, good info for anyone looking to understand waterfalls and the concepts behind it.
Sit dolores dolore quia. Unde qui molestias a neque quidem. Adipisci molestias reiciendis voluptatibus. Maiores est et cupiditate corporis nihil et voluptatibus dolor. Eos adipisci quis neque quo et dolorum.
Nihil et pariatur eligendi ut vel. Facere iusto nobis ab id beatae pariatur.
Adipisci dignissimos eius tempora unde fugiat unde excepturi ipsum. Sint et sed eum architecto ut facilis. Et praesentium qui rerum officiis non rem. Itaque est atque quis. Aut id et voluptatem quasi explicabo nisi. Iusto est itaque aut et et recusandae. Quidem ut quae voluptatem sint ut.
Voluptatum porro voluptates alias non. Eaque natus animi praesentium. Esse quae eaque autem qui incidunt quisquam est. Dolorem quidem velit blanditiis aut delectus iusto et. Culpa quaerat quia nobis impedit voluptatem mollitia voluptas.
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...