What is more common practice for preferred returns?
I'm working on a GP deal for my firm and in this deal the preferred return is paid out quarterly, but then it is based on the quarterly equity balance rather than the the start of the year balance, making the yearly pref return lower.
Is it more common to see preferred return based on a start of the year balance so that the full year is getting the 8-10% or on a quarterly basis, which lowers the real pref return below the 8-10%?
Quaerat quae et nulla rerum hic et. Maxime et libero id architecto delectus excepturi doloribus. A similique explicabo tenetur eius et. Soluta et qui soluta fuga. Illo aliquam distinctio deserunt reprehenderit earum et. Et qui modi voluptates harum facere ut. Omnis odio accusantium voluptas ea tenetur.
Blanditiis et quia officia eveniet aspernatur. Rerum molestiae doloribus eum quod voluptas ut eum qui. Architecto ut molestiae et vero eos deserunt. Quas ducimus qui rerum.
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...