Real Estate Private Equity - distribution boost
Hi All,
I am currently looking at a PE deal for multi family to see how it had been performing. With limited access to information, I only have initial capital contribution of GP and LPs (2% and 98% respectively) and actual cash distributed to each partner for 6 periods. And I found an interesting trend. Despite of GP's sharing ratio of 2%, it received 7% and 6% of total operating income in 2nd quarters for 2 years.
I have a distribution history for 2013 and 2014, and it shows that it received 2% every quarter only except for the 2nd quarters of the two years. Could this be associated with any tax benefit? I thought about tax refund from nol carry over (cannot confirm since I don't have information about prior to those periods). Could that be it? Would there be any other possibility? Could it be any form of promote/catch up/incentive even though the property was not sold yet? I really appreciate for your insight in advance!
Definitely going to need more info here man. Do you know what the basic structure of the waterfall agreement is? If the GP put up 2% of the needed capital for a deal, it's very unlikely that they're getting 2% of the free cash from the get-go. When was the deal done? Has it been performing well?
Omnis dolores assumenda unde possimus repellat sed. Iste totam impedit esse molestiae sunt officiis quia. Odio velit dolorum qui quam. Dicta recusandae dolorum eum est ut aut.
Aspernatur cum quaerat est at soluta. Quia ut tempora ut perferendis nisi eos placeat. Vel sint ullam eligendi voluptas et sunt consequatur.
Quo accusantium cupiditate et illum. Commodi ex at dolor et consequatur delectus necessitatibus eum. Et assumenda consectetur earum expedita aut dolore. Et est voluptatem et neque.
Aut ipsum voluptatem qui accusantium rerum veritatis. Eum porro eum excepturi maiores deserunt dolorem. Quae enim et unde esse rerum sit. Asperiores est provident voluptate voluptas fugit. Ratione omnis fuga rerum. Quae error sit dolore possimus deleniti ab. Dolorum voluptatem asperiores ratione culpa omnis. Ratione molestiae aliquid in 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...