So I was speaking to a friend and he says his company does an interim promote (rather than a crystallization). Basically, it's when a recap event occurs (refi or supplemental loan), they agree on a value and run it through the promote model. They calculate a total promote and pay themselves half of it out of the proceeds from the capital event. When they eventually sell, the interim promote amount they paid themselves is subtracted from the full promote amount calculated at sale.
Has anyone heard of this structure? Does your shop do it? Would you rather have this or crystallization?