splitting profit interest among vertically integrated sponsor team?

Working on assembling my first real estate development deal. I'm coming at it from an architecture and urban planning background. I'm acting as the project manager/lead and I've assembled a team of partners with general contracting experience and property management experience. In addition to sponsoring the deal, we are self performing the general contracting, and the property management. I'd like to get reimbursed for our expenses in cash, including a reasonable valuation fo my team's time and business operating overhead, but would like to structure the deal such that our profit is realized through the profit interest in the project with a simple waterfall structure. The question we are facing is this: how to spilt the profit interest among our partners? The relative value of the development fee vs the general contracting fee vs the on-going property an asset management fees? In addition, our design team is contributing their profit margin as equity (about 20% of the total design fee). Is a 25% share to each of those four roles/responsibilities appropriate? (Maybe also worth mentioning that we are asking our investors to provide a limited guarantee, and we are offering a guarantor fee to acknowledge/compensate that risk.) Thanks in advance for any insight/feedback!

1 Comments
 

Dignissimos ut reiciendis rem necessitatibus. Vero aut culpa voluptates hic. Esse eius cumque a dicta et veniam sunt. Nisi maxime consequuntur doloremque quos.

Sed facere quo deleniti excepturi. Mollitia officia soluta eaque. Cum dolorem ex ratione dolorum cum et.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.3%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (44) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (78) $151
  • Intern/Summer Analyst (72) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”