Modeling SPV where partner invests profit expected instead of capital

linkgtaylor's picture
Rank: Chimp | 5

Hi, so I'm modeling a SPV. The major partner will provide most of the capital to execute some renewable energy projects. The lesser partner is the implementer and the one bringing the projects into the SPV. Say one of the project will cost $200k. The lesser partner's profit from procuring the goods and installing would be about $50k. They want to require the major partner to only invest $150k and treat it that they are investing the other $50k. What is the best way to setup this in a model where a lease is used to recover the funds.

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Jun 13, 2018