4 Comments
 
Sounds like the GP doesn't have the balance sheet to support the deal. If the LP provided the guarantee I'd ask for compensation and or a promote.

I would think that the GP could give up something in the promote structure so that the LP will provide the guarantees- balancing upside with downside risk. If that isn't possible, I don't know how any new developers could do their first deals unless their families are rich.

 

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